Tsakos Shipping & Trading, S.A. v. M/T "TABOGA"

Plaintiff’s vessel, IRENE’S GRACE, was damaged when defendant vessel TABOGA struck her stern in a lock of the Panama Canal. The TABOGA was being piloted at the time by an employee of third-party defendant Panama Canal Company. The collision resulted in slight damage to the IRENE’S GRACE’S stern.

Pursuant to 2 Canal Zone Code, section 291, the Canal Company may be sued for damages to vessels while under the pilotage of its employees. In all other respects it enjoys sovereign immunity as an agency of the United States. A mandatory prerequisite for such a suit, however, is that a Canal Company…