Usinas Siderugicas De Minas Geras SA v Scindia Steam Navigation Company Ltd (The “Jalavihar”) - US Court of Appeals (Fifth Circuit)(Higginbotham, Wiener and Dennis Ct JJ) - 17 July 1997

General average - Whether cargo owners liable to make contribution - Whether shipowners failed to exercise due diligence to make vessel seaworthy

While executing a routine turning manoeuvre in the Mississippi, the vessel Jalavihar was grounded, destroying her steering mechanism. The shipowners declared a general average event and demanded a general average contribution from the cargo owners. The contract between the shipowners and the cargo owners included a New Jason Clause, which required general average contribution even if the shipowners were negligent unless the shipowners were found liable under COGSA.