Requirements to compensate for damage caused by an accident in the course of the operation of a ship by a user of the ship

In order to compensate for damages caused by an accident in the course of the operation of a ship, a user of the ship shall have the right to actually direct and supervise the captain and crew of the ship involved in the accident. Whether such right exists shall be determined by specifically examining whether the contract for the use of the ship is a vessel lease contract, a time charter party, or a third-party special contract of a similar nature, the purpose and contents of the contract, whether the right to actually direct and supervise the captain and crew of the ship has been granted to the user.

Articles 766(1), 780 subparag. 1, and 812-2 of the Commercial Act

[Plaintiff-Appellant] Plaintiff 1 and 1 other (Law Firm Gyeong, Attorneys Park Jong-soo et al., Counsel for plaintiff-appellant)

Korea Electric Power Corporation (Law Firm Jinju General Law Office, Attorney Kim Yong-han, Counsel for defendant-appellant)

Dong New Shipping Co., Ltd. (Attorney Kim Young-soo, Counsel for defendant-appellee)

Busan High Court Decision 99Na8957 delivered on January 10, 2001

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate brief filed after the deadline for submitting the appellate brief is limited to the extent of supplement in case of supplemental appellate brief).

In order to compensate for damages caused by an accident in the course of the operation of a ship, a user of the ship must have the right to actually direct and supervise the captain and crew of the ship involved in the accident. Whether such right exists shall be determined by specifically examining whether the ship’s use contract is a vessel lease contract, a time charter contract, or a third-party special contract of a similar nature, the purpose and contents of the contract, whether the actual right to direct and supervise the captain and crew of the ship has been granted to the user (see Supreme Court Decision 97Da19090 delivered on February 5, 199).

The court below, based on its adopted evidence, concluded a ship structure contract with the defendant company to entrust the above non-party 1 with an operation of 8,800,000 won (including value-added tax) of the defendant company's fright 3, which is a barge installed by the non-party 1 with the non-party 2, the above non-party 240t level 700, the above non-party 3. The court below rejected the plaintiff's assertion that there was no error in the misapprehension of the legal principles as to the above ship's vessel's vessel's order or reasoning since the non-party 1, who is the owner of the non-party 2, tow 102, towing the above barge anchored at anchor 102, which is a towing point, and there was no error in the misapprehension of the legal principles as to the vessel's order and supervision as the captain of the above fright-3, who was installed in the barge, and there was no error in the misapprehension of the legal principles as to the plaintiff's order or judgment.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Seo-sung (Presiding Justice)