Whether a shipowner who leases a ship is also liable to compensate for damages if the lessee causes damage to a third party by negligence of the captain in the course of commercial activities or any other commercial activities.

If a lessee of a ship causes damage to a third party by negligence of a shipmaster during commercial activities or any other commercial activity, he shall be liable to compensate for damage to the lessee and the lessor shall not be the shipowner.

Park Man-chul et al., Counsel for the plaintiff-appellant-appellee

[Defendant-Appellant] The Republic of Korea (Law Firm Gyeongyang, Counsel for defendant-appellant)

Gwangju High Court Decision 73Na345 delivered on April 26, 1974

All appeals are dismissed.

The costs of appeal are assessed against the plaintiffs.

As to the Plaintiffs’ grounds of appeal:

The issue of whether the owner of a ship is liable for the damage inflicted on a third party in any event is discussed without regard to the registration of the lease, regardless of whether or not the owner of a ship is liable for the damage inflicted on a third party, as prescribed by Article 746 of the Commercial Act, is not only the owner of a ship but also the owner of a ship who is liable for the damage inflicted on a third party as well as the owner of a ship using a ship for commercial activities or for other profit-making purposes, but also the owner of a ship who owns the ship and is not using the ship for navigation due to reasons such as lease, etc. shall not be liable for the damage to the third party regardless of the existence of the registration of the lease, and if the lessee uses the ship for commercial activities or for other profit-making purposes, he shall be liable for the damage to the third party. According to Article 766(a) of the Commercial Act, according to the facts established by the original judgment, the defendant is not liable for the damages to the defendant in the original judgment or the decision of the court below.

The issue is groundless.

Therefore, according to Articles 400, 395, and 384 of the Civil Procedure Act, it is so decided as per Disposition by the assent of all participating Justices.

Justices Rin- Port (Presiding Justice)