Legal Opinion: Manager of vessels

The management company of a number of vessels arranged insurance cover for them. Premium being
due, the insurers sued the managers claiming the premium.

The managers contended they were not party to the insurance contract; they were acting on behalf of
their principals, who were the shipowners; they alleged this was also clear to the underwriters, who
were issuing the payment receipts in the name of the manager, “on behalf of” the owner.

Based on this evidence, the court rejected the claim against the manager, considering it was the owners
who were party to the insurance contract and it was them who had to pay the insurance company.
Piraeus One Membered Court of Appeal Judgment no 110/2014, Judge: I. Apostolopoulos, Attorneys at
law: X. Adamandidis, Al. Konnidas, Maritime Law Review vol. 42, p. 360.

NOTE: The manager can assume technical management (maintenance equipment, crewing of vessel)
or commercial and technical management (also including chartering, expenses settlement, and any
other job related to the vessel). The manager acting within these duties, binds the owner.
For the manager to become liable, it should either not declare it acts for the principal – and under circumstances
that cannot be inferred – or it should act beyond the scope of its powers.