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Computers Law
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The 20,000 grt passenger ferry Southampton Glory performs cruises between Southampton and Canada. She left Southampton Docks carrying 1500 passengers with the assistance of 3 tugs (the Good, the Bad and the Ugly) under stormy weather conditions and opposing tidal currents. On its way out of the port the towing line to the Ugly parted and, in spite of the efforts of the Good and the Bad, the Southampton Glory collided with The Spade, a 2000 grt vessel engaged in dredging the river. The Spade was not displaying the appropriate signals.
As a result of the collision the Good was crushed between the two bigger ships and sank with all three of her crew. The Spade suffered £3,000,000 worth of damage.
The master of the Southampton Glory realising that the vessel was taking water and fearing that it could sink sought salvage assistance from two passing vessels which was refused. The Ugly left to return to port and collect another towing line, while the Bad helped to run the Southampton Glory aground, fearing that otherwise the vessel would block the busy waterway.
Whilst grounding, a fire started onboard the Southampton Glory and 400 passengers were killed by the fire and another 100 passengers by jumping in the cold and shallow waters. Lady X, a member of the Royal family, was saved but some precious golden jewellery valued £1,000,000 she had in her cabin safe box were destroyed by fire. Her rare and beloved dog Alfred, valued at £40,000, was killed in the fire. The other passengers were carried ashore by small private boats that came to help. Unfortunately two of these boats, each valued £30,000, capsized because they were overloaded. The owners of these boats and 30 more passengers drowned.
It was later discovered that the fire was started intentionally by a group of suspected terrorists who were planning to hijack the vessel as soon as it would reach the high seas. The owners of the Southampton Glory had received some information of the plan but considered it a hoax and did not inform the authorities or take any additional security measures.
Bunker oil from the Southampton Glory was spilled and contaminated wetlands where a nearly extinct species of crab exists, as well as the Ocean Village marina where a large number of sailing vessels ready to start a race around the world were gathered. The sailing race was cancelled while biologists considered that the rare species of crab has now become extinct because of the pollution. Nevertheless, they suggested that a £10,000,000 experiment had a 10% chance of reproducing the crab from DNA samples and could re-establish the wetlands ecosystem. The clean up costs are likely to be £20,000,000 and the wreck removal costs £5,000,000.
After successfully running the vessel aground, the Bad had tried to contain the spilled bunker oil but in doing this she also run aground and was lost.
Each tug is valued at £1,000,000. The Southampton Glory was originally valued at £30,000,000.
Discuss the liability issues arising from the above facts as well as the rights of the parties to limit liability.
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