Anti-suit injunctions in Singapore. The ‘quasi-contractual’ ground recognised.

 

Hai Jiang 1401 Pte. Ltd v. Singapore Technologies Marine Ltd. [2020] SGHC 20 involved an anti-suit injunction granted by Quentin Loh J on the ‘quasi-contractual’ ground under which a claim made in foreign proceedings is based on a contract subject to an arbitration or exclusive jurisdiction clause although the claimant is not a party to that contract.

A yard in Singapore had done work upgrading cranes on the ‘Seven Champion’ which was at that time on demise charter. The contract was with the demise charterer who were later wound up by the vessel owners who then concluded a new demise charter with another company. The yard subsequently arrested the vessel at Sharjah for unpaid sums due under the contract to upgrade the cranes and sought to have the substantive claim against the vessel owners  heard there. Owners sought an anti-suit injunction before the courts of Singapore on two grounds. First, they were the assignees of the former demise charterer’s arbitration clause in its contract with the yard. There was held to be a prima facie case of assignment to the shipowner of the arbitration clause in its contract with the yard to justify remission to the tribunal. Second, the yard’s claim was based on a contract with an exclusive Singapore law and arbitration clause. They sought to enforce the contract against third parties to that contract, the shipowner, and were bound by the arbitration clause in it. The proceedings in Sharjah were vexatious and oppressive. This was a situation recognised by the English courts as the ‘quasi-contractual’ ground for granting an anti-suit injunction and this ground was also recognised under the law of Singapore.

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Professor Simon Baughen

Professor Simon Baughen was appointed as Professor of Shipping Law in September 2013 (previously Reader at the University of Bristol Law School). Simon Baughen studied law at Oxford and practised in maritime law for several years before joining academia. His research interests lie mainly in the field of shipping law, but also include the law of trusts and the environmental law implications of the activities of multinational corporations in the developing world. Simon's book on Shipping Law, has run to seven editions (soon to be eight) and is already well-known to academics and students alike as by far the most learned and approachable work on the subject. Furthermore, he is now the author of the very well-established practitioner's work Summerskill on Laytime. He has an extensive list of publications to his name, including International Trade and the Protection of the Environment, and Human Rights and Corporate Wrongs - Closing the Governance Gap. He has also written and taught extensively on commercial law, trusts and environmental law. Simon is a member of the Institute of International Shipping and Trade Law, a University Research Centre within the School of Law, and he currently teaches at Swansea on the LLM in:Carriage of Goods by Sea, Land and Air; Charterparties Law and Practice; International Corporate Governance.

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