In The “Vinalines Pioneer the High Court of Singapore [2015] SGHC 278 has held that a claim for loss of containers on board a vessel did not constitute ‘damage done by a ship’ within the meaning of s.3(1)(d) of Singapore’s the High Court (Admiralty Jurisdiction) Act which is identical to s. 20(2)(e) of the UK Senior Courts Act 1981. Belinda Ang Saw Ean J adopted the externality test applied by Clarke J in The Rama [1996] 2 Lloyd’s Rep 281, to the maritime lien for damage by a ship. To fall within this heading the damage had to be sustained by a person or property external to the ship. Here the total loss of the containers was the result of damage done to the carrying vessel.
Tag: senior courts act 1981
Keep right on to the end (of the charter). No constructive redelivery under bareboat charter.
The termination of a demise charter pursuant to the shipowner’s right of withdrawal is a more complex process than with an ordinary time charter. The charterer still has its crew on board the vessel and some time may elapse before the shipowner is able to retake physical possession of the vessel. In the interim charterers may have entered into commitments with bunker suppliers and with cargo owners, pursuant to bills of lading.
In The Chem Orchid Lloyd’s Law Reports , [2014] 1 Lloyd’s Rep. 520, the High Court of Singapore had to decide whether the bareboat charterer, the “relevant person” who would be liable in personam, was the demise charterer when the cause of action arose, so as to found jurisdiction under s.4(4) of the Singapore High Court (Admiralty Jurisdiction) Act, which is in identical terms to s.21(4) of the UK Senior Courts Act 1981. The Assistant Registrar struck out the writs in rem on the grounds that the charter had been terminated prior to the issue of the writs. Accordingly, the vessel could not be arrested in relation to claims arising in the interim between the notice of termination being given and physical redelivery of the vessel to the shipowners.
The decision has now been reversed by Steven Chong J, [2015] 2 Lloyd’s Rep. 666, who held that the charter had not been validly terminated, but even it had, there was no concept of constructive delivery applicable to the termination of bareboat charters which continue until physical redelivery. Therefore, at the time the in rem writs were issued by the bunker suppliers and the cargo claimants, the vessel was still in the possession of the charterers.
On 20 January 2016 the Singapore Court of Appeal held that it had no jurisdiction to hear an appeal from this decision. [2016] SCGA 04.