The Knock-for-Knock Principle under Danish Law - Sandroos ...

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Other Case LawSmit vs. Mobius (2001, CLC 1545)• Facts compable to the Danish 2004 case, only tug owner caused damageon both the tow (a barge) and a third party dredging vessel• BIMCO TOWHIRE charter party containing a knock-for-knock clause• Plaintiffs, the barge owner, claimed that the tug (responsible for thedamage) was un-seaworthy (gross negligence) – knock-for-knockprovision must assume that the tug is – at least – seaworthy (captain wasdrunk).• Court held that• A commercial/businesslike approach must be taken• Knock-for-knock is a ”crude but workable allocation of risk and responsibility”• Allocation is clearly defined, even though it may seem unfair from time to time• Arguments of seaworthiness would ”significantly lessen the effectiveness of theknock-for-knock arrangement”• The provision anyway stated that the indemnity applies ”whether or not thesame is due to the breach of contract”01/12/2010 SANDROOS 24
Putting it TogetherCompanyAffiliates / GroupIts/their- Managers- Employees- Consultants- SubcontractorsCo-venturersDefinition ofrisk zonesInsuranceCompany’s insurancesConstruction All-Risk (CAR)- Coverages- DeductiblesActivityspecific risksContractor’s insurances- Workmen’s compensation- P&I, Hull & Machinery- Third-party Liability- Aircraft, Automobiles, OtherDrilling: subseq and borehole equipmentDiving/ROV: specific equipmentLift: the crane, the heavy-lift vesselIntentWillful misconductGross negligenceNegligenceDegree ofnegligenceKnock-forknockExclusions orcarve-outsRisk zonesDegrees of negligenceGeopgraphic sitesTime periodsProtected interests not covered- Special types of equipmentSole/contributoryStart and finishWorksitesTransportation routesWorld-wideGeographySole orcontributorynegligenceSole negligenceContibutory negligencePrior to contract signingDesign, pre-studiesDuring suspension/stopTerminationCompletion CertificateWarranty periodAfter warranty periodTimeProtectedinterestsPersonal illness, injury and deathPropertyThe Work / Permanent WorkThird-partiesThe environmentOther contract clauses………01/12/2010 SANDROOS25
Page 1 and 2: The Knock-for-KnockPrinciple under
Page 3 and 4: Physical Loss, Damage or Injury•
Page 5 and 6: The Contractual Solution• Regulat
Page 8 and 9: Knock-for-Knock ComponentsCoverage
Page 10 and 11: Principal Reservations• No incent
Page 12 and 13: What kind of liabilities can you Li
Page 14 and 15: Summing Up - Knock-for-KnockDraftin
Page 16 and 17: US• Federal law - state law• On
Page 18 and 19: Norway• Generally accepts indemni
Page 20 and 21: Regulatory Starting Point• Contra
Page 22 and 23: Case LawUfR 1999.1161 H• Transpor
Page 26: The Knock-for-KnockPrinciple under

The Knock-for-Knock Principle under Danish Law - Sandroos ...

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