Deals & Cases - D&A LLC

Shipping Jul-17-2024

DR & AJU Successfully Represents the Government of ROK in a Damages Claim for State Compensation in a Case Where a 150K Ton Container Ship Collided with Large Gantry Cranes While Berthing in Busan New Port

On April 6, 2020, a 150,000-ton container ship Milano Bridge (flag state: Panama) collided with gantry crane 85 and berth 8, destroying the two facilities and causing partial damage to cranes 81 and 84 while entering Busan New Port Terminal. It also collided with the ship Seaspan Ganges, which was being berthed.

The Japanese ship owner of Milano Bridge (hereinafter “Plaintiff”) filed a claim against the Government of the Republic of Korea for damages caused by the negligent management of Busan New Port Terminal. On July 6, 2020, the Plaintiff claimed that Busan New Terminal was a public structure liable for state compensation under South Korean law, and the Minister of Oceans and Fisheries (hereinafter “Client”) failed to fulfill its duties as the management authority of the port to provide adequate protective measures. Specifically, the Plaintiff argued that the Client, which mandated compulsory pilotage, had the duty to designate a highly knowledgeable harbor pilot as the entrusted entity of the public affairs of the port, but provided a harbor pilot with questionable abilities to maneuver the Plaintiff’s ship. The Plaintiff also claimed that the Vessel Traffic Service (VTS) failed to announce the sailing restrictions caused by the ongoing removal project of the island Tohdo, nor did the VTS issue a warning when the ship entered the port at high speed. Based on these claims, the Plaintiff filed a claim for damages according to Korea’s State Compensation Act.

In response, DR & AJU demonstrated that the Client had taken sufficient measures to ensure safety at Busan New Port such as establishing a safety council to prevent accidents during the Tohdo removal project, distributing safety manuals, and installing numerous large light buoys. Furthermore, DR & AJU clarified that even in situations of compulsory pilotage, a harbor pilot cannot be considered to an entity entrusted with the public affairs of the port, as they cannot exercise governmental authority pursuant to laws. Finally, DR & AJU successfully proved with specific evidence that the public official in charge of operating the vessel traffic service, did not violate duty by intention or negligence.

As a result, the Busan District Court dismissed the Plaintiff’s claim. Despite the Plaintiff’s appeal, this decision was affirmed by the Busan High Court and finalized when the Plaintiff did not appeal again.

Please click the links below to see the news articles related to this case. (Korean)

[SHIPPER’S JOURNAL] Large Container Ship Collides with Crane at Busan New Port…Expected Loss of Billions of Won
[Maritime Press] Milano Bridge Accident, Caused by Compromised Ship Maneuverability
[Kyunghyang Shinmun] 150,000-ton Large Container Ship Crashes While Sailing with Propeller Out of Waters
[Daily Log] A Container Ship Operated by the Japanese Shipping Company Ocean Network Express (ONE) Collides with PNC’s Crane at Busan New Port

Professionals
- Woorin SUNG
  
  Partner
  
  T. +82 2 3016 5393
  
  Hee Kyung JEONG
  
  Attorney
  
  T. +82 2 3016 7411
Practice Areas
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