Parakou Shipping Pte Ltd v. The Owners and/or Demise Charterers of the Ship or Vessel "Jin Kang (Ex "Canton Trader")

Case No.HCAJ 132/2009
Court
HCAJ
Date29 Sep 2009
Judge
Case Document
100%

HCAJ 132/2009

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ADMIRALTY ACTION NO. 132 OF 2009

____________

Admiralty action in rem against: the ship or
vessel “JIN KANG (ex “CANTON TRADER”)

BETWEEN

  PARAKOU SHIPPING PTE LIMITED Plaintiff
  and  
  The owners and/or demise charterers of the ship or vessel “JIN KANG (ex “CANTON TRADER”) Defendants

____________

Before: Hon Reyes J in Chambers

Date of Hearing: 29 September 2009

Date of Decision: 29 September 2009

_____________

D E C I S I O N

_____________

1.In my view Jin Kang’s applications for strike out and for a declaration of no jurisdiction should be dismissed.

2.I shall assume, without necessarily accepting, that Jin Kang’s applications are procedurally well-founded. I say this because it seems to me that there is force in Mr Sussex’s submission that both applications are either premature or misconceived procedurally.

3.But let me assume that the applications are procedurally valid.

4.In my view, there is an arguable case on the evidence presently before the court that, at the time of the misrepresentation in mid June 2008, Jin Kang was in control of the vessel “CANTON TRADER”. Otherwise (as Mr Sussex SC pointed out) there would be difficulty in explaining the back-to-back charterparties dated 17 June 2008, respectively between Jin Kang and Galsworthy and allegedly between Galsworthy and Parakou. Arguably, there could be in rem jurisdiction.

5.Further, it seems to me that there is a case for saying (contrary to Mr Coleman SC’s submission) that a cause of action has accrued. If Parakou is right on its misrepresentation case, as at mid-June 2008 it would have incurred a liability to Galsworthy under a charterparty. On this hypothesis, but for the misrepresentation Parakou would not have incurred such liability. The liability may not be quantifiable until later. But that does not prevent damage (in the form of a liability) from having been incurred.

6.Therefore, however one looks at the matter, it would be wrong for me at this stage to strike out the in rem writ or to declare that this court has no jurisdiction.

  (A.T. Reyes)
Judge of the Court of First Instance
High Court

Mr Charles Sussex, SC, instructed by Messrs Hammonds, for the Plaintiff

Mr Russsell Coleman, SC and Ms Zabrina Lau, instructed by Messrs Richards Butler, for the Defendants