ITIC warns on legal risks

ITIC WARNS ON LEGAL RISKS TO SURVEYORS

THE International Transport Intermediaries Club (ITIC) has highlighted the extent of the potential legal exposure faced by marine surveyors even when they are innocent of any blame, or indeed responsibility, in specific cases.

In its latest Claims Review, ITIC reports on the case of a surveyor in Australia who, although appointed by a bank only to confirm the value of a vessel under construction at a local yard and to certify when additional funds could be drawn down during the construction period, nevertheless found himself – along with the shipbuilder and the building quality control surveyor - named in legal proceedings brought by the owner after defects were discovered in the vessel.

Legal proceedings against all parties took two and a half years to conclude. A settlement of $235,000 was reached at mediation, with ITIC contributing US$23,500 towards the settlement on behalf of the innocent surveyor, plus US$25,000 in legal costs.

ITIC says it always instructs marine surveyors to obtain clear instructions and/or to confirm in writing the exact services they are to provide. “Unfortunately,” it adds, “this does not always protect surveyors from legal action. This is an unfortunate example where the cheapest option is for a surveyor to contribute to a settlement even though his instructions and responsibilities were clear from the very beginning.”

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