British Columbia Mills Tug & Barge Co. v. Mylroie

Background

An American barge and its cargo were being towed by a British tug called the Commodore on March 26, 1917, when the towline connection snapped and the barge grounded on Mary Island, Alaska. The barge owner said the tug was negligent, lacked a proper lookout, and was unseaworthy; the tug owner blamed a defective shackle supplied by the barge and relied on a contract clause that appeared to exempt the tug from liability while towing. The District Court found for the tug, but the Court of Appeals reversed, and the case reached this Court.

Reasoning

The Court examined testimony, logs, and expert tests and agreed with the Court of Appeals that the tug failed to station a proper lookout, steamed too near shore in bad weather, and did not warn the barge before making a sudden turn. Credible testimony from the helmsman and a laboratory test showed the shackle broke from a sudden strain. The Court interpreted the contract clause to mean the tug could avoid liability only if it rendered reasonable assistance and had taken reasonable precautions. Because the tug’s lack of lookout created the emergency and the tug did not properly warn or assist the tow, the exemption did not protect it.

Real world impact

The ruling makes the tug owner responsible for the barge and cargo loss and sends the case back to assess damages. It emphasizes that towing companies must keep proper lookouts and warn tows of maneuvers, and that blanket contract exemptions will not excuse negligence that creates an emergency.