News
12 October, 2026
Dales Marine v United States of America
Lord Lake has issued his decision in Dales Marine v United States of America, Oceaneering International and others [2026] CSOH 94. The case concerns the R V Petrel, a ship owned by the United States Government and operated by Oceaneering International. In March 2023, whilst in dry dock, the Petrel toppled on its side, causing significant damage.
In Dales Marine, the owner of the dockyard brought proceedings under the Merchant Shipping Act 1995, seeking to limit its liability arising from the incident. Following a debate in the Commercial Court, Lord Lake has dismissed the action.
The Court’s decision relates to the provisions of the Merchant Shipping Act 1995 and also to issues of jurisdiction more generally. The decision deals with three principal issues. First, the Court held that actions to limit liability do not fall within the jurisdiction provisions of Schedule 8 of the Civil Jurisdiction and Judgments Act 1982. Second, the Court held that in any event, a limitation action is not an action relating to delict within the meaning of paragraph 2(c) of Schedule 8 and that paragraph 2(o) of Schedule 8 (claims against multiple defenders) did not apply on the facts of the action. Third, the Court held that the dockyard limitation provisions of the 1995 Act were not available to constitute a limitation fund prior to proceedings against the dockyard owner having been commenced.
The decision is of significance in relation to dockyard limitation, but Lord Lake’s discussion of the circumstances in which the Court will have jurisdiction in an action with parties from Scotland and the USA is of broader importance for practitioners. Robert Howie KC and Ross Anderson KC acted for the pursuer, Dales Marine Services Limited. Simon Bowie KC and Giles Reid acted for the second defender, Oceaneering International.