Primex Forest Products Ltd. v. Harken Towing Co.

This case arose out of a collision involving a log tow and a bridge. As a consequence of the collision the log tow broke apart and the Plaintiff was required to pay for salvage. The Plaintiff claimed these expenses from the Defendant tug owner who alleged that it was not liable by reason of a set of standard towing conditions or, alternatively, that it was entitled to rely upon a limitation provision in the conditions. The issue in the case was whether these conditions were valid. The Plaintiff argued that the various clauses within the conditions were inconsistent and ambiguous and therefore of no force and effect. The Court agreed with the Plaintiff that the exclusion clauses within the conditions were inconsistent and of no effect, however, the Court gave effect to the limitation provision. In result, the Defendant was entitled to limit its liability to $500.