Emergency Contact UKSTC - Hull damage recovery claims under LCC Home Latest updates News UKSTC - Hull damage recovery claims under LCC 12 Jun 2019 Download Sign up for alerts The Shipowners' Club can provide legal expenses cover to all Members, whatever their size or trade. This article provides an example of how Legal Costs Cover (LCC) can assist Members who own and operate port tugs. The most common type of LCC claim involving port tugs occurs when they suffer damage during a tow but the total cost is below the vessel’s Hull and Machinery deductible. In these circumstances, the Tugowner can rely on their LCC to make any recovery under the towage contract. For the purposes of this article, we assume that the tow is carried out under the UK Standard Towage Conditions (UKSTC) applying English law. This contract, the current version of which was issued in 1986, is the most commonly used for port towage. Similar forms of contract are used all over the world, though local law may affect their interpretation. The contract is generally favourable to the owner of the tug and it is unusual for the terms to be amended. There are three crucial questions to consider when a Tugowner is trying to make a recovery under UKSTC: Who are the parties to the contract? Do the terms of the contract apply to the incident? Is liability established? Who are the parties to the contract? The UKSTC is a contract between the “Tugowner” and the “Hirer”. The identity of the Tugowner will usually be clear, but the hirer/s may be harder to pinpoint. The towage may be arranged by the ship’s agent or charterer rather than the owners. To add further complication, rather than a contract being signed, it is much more common for the terms to be incorporated by reference (for example in an email agreeing the tow). It is therefore important to look at how the towage was agreed and whether the parties were acting for themselves or on behalf of another party. In addition, Clause 2 of the UKSTC states that “