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“Seta Maru”, “Saikyo” And “Suma” – China Shipbuilding Corporation -v- Nippon Yusen Kabukishi Kaisha And Galaxy Shipping Pte. Ltd.

11th Jan 2000

[2000] 1 Lloyd’s Rep. 367

David Edwards acted for Japanese purchasers of three new-build bulk carriers seeking to recover against the shipyard in respect of serious welding defects

Shipbuilding contract – Exemption clause – Construction – Builders contracted to build three bulk carriers for buyers – Guarantee period expired – Allegations of defects in erection welding of vessels – Buyers claimed costs of repairing the welding and depreciated value of vessels – Whether liability excluded for defects arising after expiry of guarantee period – Whether losses claimed recoverable

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