Clifford Chance
Eye-Spy – Latent Defects And 'As Is, Where Is' Clauses In Charter Parties
8 January 2018
In the recent decision of Delaware North Marine Experience Pty Ltd v The Ship "Eye-Spy" [2017] FCA 708, the Federal Court of Australia clarified what constitutes a "latent defect" and who is responsible for such defects in chartered vessels where they are accepted in an "as is, where is" condition. The Court held that "as is, where is" clauses do not necessarily exempt shipowners from their obligations of due diligence or from liability for latent defects which are not readily discoverable on inspection.
