Ship repair in the construction contract: Shipyard ordered to pay damages

A defective ship becomes a financial disaster: Due to a defective interior coating, the ship was out of service for weeks – with significant financial consequences for the owner. 

The case ended up in court, and the Düsseldorf Higher Regional Court ruled in favor of the shipowner: The shipyard was ordered to pay 146,498 euros in damages for loss of use.
This case demonstrates the importance of compliance with the contractual warranty when repairing ships. Shipowners are entitled to compensation for defects that result in significant loss of use.

Warranty for work and services on ships: compensation and legal challenges

The warranty under a work contract is essential in construction and manufacturing law. It obligates the contractor to remedy defects that arise during the contract term. Legally sound defect rectification is particularly important in the maritime sector, where ships are subject to complex stresses.

The Düsseldorf Higher Regional Court strengthened the rights of ship owners with a recent ruling and awarded damages to an owner after defective work led to loss of use.

Rights and obligations for remedial work:

  • Clear deadlines for complaints
  • Obligation to carry out professional repairs
  • Compensation for loss of use

This case highlights the importance of enforcing contractual warranty claims and obtaining legal support for repairs to ships.

The case: Defective ship equipment – Higher Regional Court of Düsseldorf orders shipyard to pay damages

The Düsseldorf Higher Regional Court ruled in favor of a shipowner claiming damages due to the defective interior coating of an inland waterway vessel. The shipyard was ordered to pay €146,498 for the resulting loss of use. The damage was caused by a defective coating on the tanker, which resulted in coating residues while transporting biodiesel. This resulted in the vessel being taken out of service for several weeks. It was unloaded, cleaned, and the coating completely renewed. The loss of use totaled 55 days.

The shipowner subsequently sued for damages based on the previous demurrage rates for inland waterway shipping. The shipyard attempted to invoke liability exclusions in the contract, but the court declared these invalid. The ruling confirms the amount of damages and thus strengthens the rights of shipowners in the event of defects and loss of use. The right to compensation for shipowners is particularly emphasized within the framework of a warranty under a contract for work and services.

Conclusion: Strengthening the rights of shipowners in the event of loss of use

The judgment of the Higher Regional Court of Düsseldorf confirms the applicability of statutory demurrage rates for calculating loss of use for inland waterway vessels and sets clear limits for ineffective exclusions of liability in shipyard contracts. 

Shipowners benefit from strengthened rights in the event of defects in workmanship and can claim compensation for loss of use due to defective performance.

 The decision simplifies the calculation of damages and emphasizes that unclear contractual clauses should be critically examined and interpreted in favor of the injured party. Important: Carefully document defects and downtime to effectively enforce your claims.

Your partner in shipping law: Legal certainty for shipyard contracts

As experienced maritime lawyers, we represent boat owners in disputes with shipyards regarding construction contracts. Whether defects in the new build, faulty repairs, or loss of use – we enforce your claims for damages and review contractual clauses for validity. Protect your rights with competent legal support.

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