The Defendants' alternative case to avoid the policy was failure on the Claimants' part to exercise due
diligence. The Defendants argued that the breakdown resulted from want of due diligence within the
meaning of the Inchmaree clause of the ITCH whereby the "the underwriters expressly agree to
undertake such risks- provided that such loss or damage has not resulted from want of due diligence by
the Assured, Owners or Managers". The Court followed the authority in Secunda Marine Services Ltd v
Libery Mutual Insurance Company 2006 NSCA 82, that want of due diligence is negligence, and that it is
"a lack of reasonable care", rather than recklessness as the Defendants alleged. The Court held that the
failures alleged by the Defendants did not amount to negligence as there was no reason to doubt the
adequacy of the inspection in 2006 and, accordingly, the Claimants' technical managers' reliance on the
inspection.