Bernard LLP was successful in defending Catherwood Towing in the Supreme Court of British Columbia in a dispute over an indemnity provision.
This litigation arose from the grounding of two barges while under tow by Catherwood Towing. The supplier of the barges claimed damages in an amount exceeding $800,000. Bernard LLP defended Catherwood Towing against this claim by arguing to the court that the applicable barging agreement included a covenant to insure that required the supplier to obtain hull and machinery insurance for its own barges, and that this insurance was intended to be used to pay for the damages.
The judge accepted and agreed with Bernard LLP’s interpretation of the applicable case law by holding that the barging agreement did indeed convey the benefit of the supplier’s insurance to Catherwood Towing in these circumstances. The supplier’s claim was dismissed in its entirety and costs were awarded to Catherwood Towing: see Lehigh Hanson Materials Limited v. Sea Imp Xi (Ship), 2022 BCSC 1556.
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