Maritime Legal Update
– July 2026
Australia: High Court
confirms no limitation of liability for wreck removal costs
(prepared by Marek Czernis & Co. Law
Office)
Firm note – limitation
of liability, wreck removal and port claims
The Law Office actively advises shipowners,
ports, terminals, P&I Clubs, insurers and financing institutions regarding:
limitation of liability, wreck removal claims,nport liability, casualty
response, pollution claims, marine insurance and disputes arising from maritime
casualties.
The Law Office participated in and supported
one of the parties involved in the dispute discussed in this judgment,
particularly in relation to limitation of liability issues, interpretation of
the LLMC 1976 Convention and claims concerning wreck removal and pollution
response.
1. Introduction – CSL
Australia Pty Ltd v Tasmanian Ports Corporation Pty Ltd
In CSL Australia Pty Ltd v Tasmanian Ports
Corporation Pty Ltd [2026] HCA 15, the High Court of Australia delivered one of
the most important recent judgments concerning limitation of liability for
wreck removal claims.
The judgment concludes long-running litigation
arising from the collision involving MV Goliath and two harbour tugs in Devonport, Tasmania.
2. Background
In January 2022 MV Goliath collided with the
tugs: York Cove, Campbell Cove, causing both vessels to sink and
resulting in fuel pollution within the Mersey River.
TasPorts sought recovery of: wreck removal
costs, pollution response costs, salvage-related expenses and other
consequential losses.
The total claims exceeded AUD 20
million.
3. The legal issue
The central question was whether the shipowner
could limit liability under the Convention on Limitation of Liability for
Maritime Claims 1976 (LLMC 1976). CSL argued that the claims should be subject
to limitation. TasPorts maintained that Australia had exercised its right to
exclude wreck removal claims from limitation.
4. LLMC and
Australia’s reservation
Australia exercised its reservation under
Article 18(1) excluding the application of Article 2(1)(d) which concerns
claims relating to the raising, removal, destruction or rendering harmless of
wrecks. The dispute focused on whether such claims could
nevertheless remain limitable through another category within Article 2.
5. High Court decision
The High Court unanimously dismissed CSL’s
appeal. The Court held that where a claim falls within the wreck
removal category, it remains excluded from limitation regardless of whether it
may also fall within another category of maritime claim. Accordingly
wreck removal costs are not subject to limitation under Australian
law.
6. International
significance
The High Court relied upon authorities from: Hong
Kong, the Netherlands and other jurisdictions applying the LLMC
Convention.
The judgment reinforces the importance of
maintaining consistency in the international interpretation of maritime
conventions.
7. Practical
implications
The decision significantly increases exposure
for shipowners in relation to: wreck removal, environmental response costs, salvage
operations and claims brought by port authorities.
For ports and terminals, the judgment
strengthens the ability to recover the full costs associated with maritime
casualties.
The decision will also be highly relevant for: P&I
Clubs, insurers, maritime financiers and port operators.
8. Law Office
conclusions
The judgment in CSL Australia Pty Ltd v
Tasmanian Ports Corporation Pty Ltd [2026] HCA 15 is one of the most
significant recent decisions concerning limitation of liability in maritime
law.
The Court confirmed that: reservations made
under the LLMC Convention must be interpreted strictly, wreck removal claims
may fall entirely outside the limitation regime and shipowners and insurers
must account for the possibility of full liability exposure.
The decision serves as an important reminder
that the financial consequences of major port casualties may extend well beyond
the limits available for other maritime claims.
Final note – our
publications
Further insights regarding maritime law,
limitation of liability, casualty response and marine insurance are available
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