The High Court in Demerara has ruled in favour of the Guyana Power and Light (GPL), awarding the power company over $205 million in damages and $3 million in court costs after a Netherlands-flagged vessel, Vlistdiep (the defendant), was found liable for damaging a critical submarine cable.
Located on the floor of the Demerara River, the 69-kilovolt (KV) cable owned by GPL, was severed on November 27, 2020, when the ship deployed its anchor, causing widespread power outages and financial losses for GPL.
The Berbice Interconnected System was disrupted, leading to a shutdown of the Demerara Interconnected System. The two-hour long power outage affected approximately 136,083 customers.
Authorities detained the ship after the incident, and it was only release after North P&I Club provided a letter of undertaking. On April 2, 2021, GPL filed a lawsuit against the vessel’s owners.
Justice Nareshwar Harnanan, who presided over the matter, ruled on Monday, that the vessel breached its duty of care by failing to take reasonable precautions to protect the underwater cable.
The court dismissed the defendant’s claim that the vessel was under the guidance of a Maritime Administration Department (MARAD) pilot at the time of the incident.
Notably, the judge pointed out that the defendant failed to pursue a third-party claim against MARAD as previously indicated.Emphasising that the claimant, GPL, presented uncontroverted evidence, the judge said that the company’s witness Troy Clarke confirmed that the submarine cable was clearly marked in accordance with international charting standards.
During the lengthy trial, MARAD officers testified, outlining standard operating procedures for maritime navigation.
According to the judge, they emphasised the responsibility of vessel operators to maintain vigilance, especially during challenging tidal conditions.
Based on the evidence presented, Justice Harnanan determined that the vessel’s negligence directly led to the severing of the cable and the subsequent damages to GPL.
As a result, the court ordered the ship to pay $200,931,139 in special damages for the repair and replacement of the cable, $5,000,000 in general damages for negligence, and $3,000,000 in costs.
Additionally, interest was set at six per cent from the date the case was filed to the date of judgment, and four per cent thereafter until full payment is made.
All payments must be made on or before February 28, 2025. Attorneys Devindra Kissoon, Natasha Vieira, and Abhimanyu Dev represented GPL, while the ship’s legal team included attorneys Nigel Hughes, Jed Vasconcellos, and Shawn Shewram.
