## Facts

- Cineraria Shipping Co. owned the M/V KALLIOPI II, which loaded scrap metal in Tampa, Florida for shipment to Korea under a bill of lading incorporating the York–Antwerp Rules 1974 and a New Jason Clause.
- While being maneuvered out of the berth under tug and pilot control, the vessel’s rudder struck the channel bank and was damaged.
- The rudder damage made the ocean voyage unsafe without repairs, and the vessel returned to Tampa with tug assistance.
- To repair the rudder, the vessel discharged and stored the cargo ashore, completed repairs, reloaded the cargo, and then completed the voyage.
- Cineraria declared general average and sought contributions from cargo interests for entry/return expenses, cargo handling and storage costs, and detention-related expenses (including crew wages and maintenance).
- Royal Insurance Company of America, as subrogee/insurer for a cargo interest, sued for a declaration that no general average contribution was owed; Cineraria counterclaimed for approximately $108,744.02 plus interest and costs.

## Issues

1. Whether rudder damage requiring return to the port of loading and cargo discharge for repairs constituted a general average event involving “peril” and actions taken “for the common safety.”
2. Whether alleged navigational negligence (including pilot error) barred the shipowner’s recovery of general average contributions despite the New Jason Clause and COGSA.
3. Whether the claimed categories of expenses (including cargo discharge/storage/reloading and detention-related crew expenses) were allowable as general average under York–Antwerp Rules X and XI (1974).

## Decision

- The court granted summary judgment for Cineraria on its counterclaim for general average contribution.
- The court held the vessel and cargo faced sufficient peril because the vessel could not safely prosecute the voyage with a damaged rudder.
- The court ruled that returning to Tampa and discharging cargo to enable necessary repairs were extraordinary measures intentionally and reasonably taken for the common safety.
- The court concluded the disputed expense categories were recoverable in general average under York–Antwerp Rules X(a) and XI(b).
- The court held alleged navigational negligence did not defeat contribution because the New Jason Clause preserved general average rights absent carrier liability to cargo under COGSA, which was not established on this record.

## Legal Principles

- A general average act exists when an extraordinary sacrifice or expenditure is intentionally and reasonably made for the common safety to preserve property from peril in a common maritime venture.
- “Peril” for general average does not require imminent destruction; it is enough that continuing the voyage without the measures taken would expose ship and cargo to real danger.
- Under York–Antwerp Rule X(a), expenses of entering (and corresponding departure from) a port of refuge or return to the port of loading due to accident or extraordinary circumstances necessary for common safety are allowed in general average.
- Under York–Antwerp Rule XI(b), crew wages and maintenance reasonably incurred during detention in port to repair accidental damage necessary for safe prosecution of the voyage are allowed in general average.
- A New Jason Clause generally requires cargo to contribute in general average even if loss or expense resulted from carrier negligence, unless the carrier is legally liable to cargo under COGSA; navigational error defenses under COGSA may prevent such liability.

## Conclusion

The court treated the rudder casualty and resulting return to Tampa to discharge cargo and complete necessary repairs as a general average event, allowed the related port, cargo-handling, and detention expenses under the York–Antwerp Rules, and enforced contribution against cargo interests because the New Jason Clause preserved general average rights notwithstanding alleged navigational negligence absent demonstrated COGSA liability.


Royal Ins. Co. of Am. v. Cineraria Shipping Co., 894 F. Supp. 1557 (M.D. Fla. 1995)