A dispute over general average contribution stemming from a grounded self-unloading bulk carrier has escalated into a legal battle between Canadian shipowner CSL Group and U.S. steel giant Cliffs Mining, involving approximately $1.028 million in claimed damages.
Foreign media reports indicate that CSL’s subsidiary, Canada Steamship Lines, has formally filed a lawsuit against Cliffs Mining, demanding payment for its share of general average expenses, along with accrued interest and litigation costs. The vessel in question is the *Rt Hon Paul J Martin*, a 37,200-dwt self-unloading bulk carrier built in 1973.
Records show that in 2019, while transporting approximately 29,500 tons of iron ore from ports in Minnesota and Wisconsin to Quebec City, Canada, the vessel ran aground in U.S. waters of the St. Lawrence River.
According to CSL’s 2022 claim, six days after the incident, part of the cargo was offloaded onto barges to refloat the ship, which had sustained significant hull damage. Despite two rounds of temporary repairs, the vessel ultimately required drydocking at Heddle Shipyards in Ontario for major repairs.
Following the declaration of general average, a third-party adjuster assessed the total accident-related costs at nearly $1.968 million, with the cargo interest’s share amounting to roughly $1.028 million. However, Cliffs Mining has refused payment. Its legal counsel argued in defense that the grounding resulted from CSL’s failure to exercise reasonable care in ensuring the vessel’s seaworthiness, thus invalidating the general average claim.
Cliffs Mining also contested the adjuster’s valuation of the ship at $9.476 million at the time of the incident, noting that its insured value stood at $15.307 million just six months prior—a discrepancy it deemed significant.
It is understood that, at Cliffs Mining’s request, the Canadian Federal Court will hold a special hearing in September to address its application for CSL to disclose insurance documents. Court records further indicate that the parties have scheduled mediation for November.
