Abstract
This case (1) concerns damage done to the ship Pernas Arang (the Ship) as a result of a collision between it and the tug Koumala (the Tug) whilst the Tug was readying itself to tow the Ship. The case deals with the important question as to whether the warranty to exercise due care and skill imposed by s.74 of the Trade Practices Act 1974 (Cth) (TPA) applies to a towage contract, or whether such a towage contract can be said to fall within the exception contained within subs.(3), which reads:
"S.74 Warranties in Relation to the Supply of Services
(3) A reference in this section to services does not include a reference to services that are, or are to be, provided, granted or conferred under:
(a) a contract for or in relation to the transportation or storage of goods for the purposes of a business, trade, profession or occupation carried on or engaged in by the person for whom the goods are transported or stored."
The case also considers whether the collision occurred "whilst towing" within the meaning of that phrase in the contract.