When incompetence defeats General Average

In Unity Ship Group S.A. v Euroins Insurance JSC (The Happy Aras) [2026] EWHC 7 (Admlty), the Admiralty Court revisited a principle as old as carriage by sea itself: you cannot rely on General Average if the casualty was caused by your own failure to provide a seaworthy ship.

The Facts

The bulk carrier Happy Aras grounded off the Turkish coast in March 2023. Owners declared General Average and sought cargo contributions of approximately US$1.27 million. Cargo interests’ insurers resisted payment, arguing that the grounding resulted from unseaworthiness, namely:

• Incompetence of the Master

• Defective passage planning

• Failure to maintain proper navigational oversight

The insurer’s guarantee covered sums “reasonably, properly and legally due.” The question for the Court was straightforward: were they legally due at all?

The Legal Framework

Under the York-Antwerp Rules, General Average adjustments preserve rights of contribution. However, they do not remove defences based on carrier fault.

Under the Hague Rules, a carrier must exercise due diligence before and at the beginning of the voyage to make the vessel seaworthy. This includes:

• A properly prepared passage plan

• A competent Master and crew

• Adequate navigational practices

If the loss is caused by a failure of due diligence, the carrier cannot recover General Average from cargo.

The Court’s Findings

The Court found:

• The passage plan was materially deficient.

• Basic navigational safeguards were not implemented.

• The Master deviated from the planned route without adequate monitoring.

• Crucially, the Owners did not call the Master or crew to give evidence.

The judge concluded that this was not mere navigational negligence. It reflected incompetence, rendering the vessel unseaworthy.

The result: the General Average claim failed.

Why This Case Matters

This decision is significant for three reasons.

1. Competence is part of seaworthiness.
Seaworthiness is not only about steel and machinery. It includes human capability. An incompetent Master can render a ship legally unseaworthy.

2. Passage planning is not administrative formality.
Inadequate planning can defeat substantial commercial claims.

3. Evidence matters.
Failure to call key witnesses may invite adverse inference. In litigation, silence is rarely neutral.

A Broader Reflection

General Average remains a powerful risk-sharing mechanism. But it is not a shield against foundational failings.

If due diligence is absent at the commencement of the voyage, the commercial machinery of General Average simply does not engage.

For shipowners, operators, insurers and advisers alike, the lesson is clear:

Seaworthiness begins with competence. Without it, recovery may end before it starts.