▁was ▁that ▁rule ▁break ers ▁were ▁li able ▁for ▁all ▁consequ ential ▁damage , ▁disp la cing ▁the ▁stat ut ory ▁position ▁that ▁a ▁def endant ' s ▁li ability ▁is ▁limited . ▁On ▁ 5 ▁July ▁ 1 8 9 4 , ▁the ▁Sat an ita ▁coll ided ▁with ▁Lord ▁Dun ra ven ' s ▁y acht , ▁inj uring ▁a ▁crew member ▁(" The ▁un fortun ate ▁man ▁was ▁a ▁se aman ▁named ▁Brown , ▁one ▁of ▁whose ▁legs ▁was ▁broken ") ▁and ▁causing ▁it ▁to ▁sink . ▁ ▁Jud gment ▁The ▁Court ▁of ▁App e al ▁held ▁that ▁there ▁was ▁a ▁contract ▁for ▁the ▁owner ▁of ▁The ▁Sat an ita ▁to ▁pay ▁Lord ▁Dun ra ven ▁compens ation . ▁Lord ▁E sh er ▁MR ▁held ▁that ▁a ▁contract ▁had ▁been ▁formed , ▁since ▁" one ▁of ▁the ▁conditions ▁is , ▁that ▁if ▁you ▁do ▁sail ▁for ▁one ▁of ▁such ▁pri zes ▁you ▁must ▁enter ▁into ▁an ▁oblig ation ▁with ▁the ▁own ers ▁of ▁the ▁y ach ts ▁who ▁are ▁compet ing , ▁which ▁they ▁at ▁the ▁same ▁time ▁enter ▁into ▁similarly ▁with ▁you … ▁If ▁that ▁is ▁so , ▁then ▁when ▁they ▁do ▁sail , ▁and ▁not ▁till ▁then , ▁that ▁relation ▁is ▁immediately ▁formed ▁between ▁the ▁y acht ▁own ers ". ▁L op es ▁L J ▁agreed ▁that ▁there ▁was ▁a ▁contract . ▁ ▁R ig by ▁L J ▁said ▁that , ▁ ▁House ▁of ▁L ords ▁Without ▁anal ys ing ▁the ▁issue ▁of ▁whether ▁there ▁was ▁a ▁contract