Shagang Shipping Co Ltd v Ship 'BULK PEACE' as surrogate for the Ship 'DONG-A ASTREA' [2014] FCAFC 48

Shagang Shipping Co Ltd v Ship 'BULK PEACE' as surrogate for the Ship 'DONG-A ASTREA' [2014] FCAFC 48

The arrest of Bulk Peace as a surrogate vessel must be set aside and proceedings dismissed, as there is insufficient evidence to demonstrate HNA as the owner of Bulk Peace for the purposes of s 19(b) of the Admiralty Act 1988 (Cth). Summary disposal is appropriate due to lack of jurisdiction; and there is no basis for adjournment as further evidence is unlikely to be obtained.

Parties
Plaintiff/respondent: Shagang Shipping Co Ltd; Defendant/applicant: The Ship 'BULK PEACE' as surrogate for the Ship 'DONG-A ASTREA'; Applicant (interlocutory Application): Well Far Ltd
Jurisdiction
Australia
Judgment Date
22 March 2014
Procedural Posture
Interlocutory Application—release of Arrested Surrogate Vessel / Summary Application—orders for Release, Summary Disposal
Outcome
Application for release of Bulk Peace granted; arrest set aside; proceedings dismissed; Plaintiff ordered to pay costs; adjournment application dismissed.
Legal Topics
Arrest of Surrogate Vessel, Ownership Under Admiralty Act S 19, Summary Disposal, Evidence of Ownership, Adjournment for Further Investigations
Admiralty Practice and Procedure Arrest of Surrogate Vessel Ownership Under Admiralty Act S 19 Summary Disposal Evidence of Ownership Adjournment for Further Investigations

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Parties

Shagang Shipping Co Ltd

Plaintiff/respondent

The Ship 'BULK PEACE' as surrogate for the Ship 'DONG-A ASTREA'

Defendant/applicant

Well Far Ltd

Applicant (interlocutory Application)

Procedural Posture

Interlocutory Application—release of Arrested Surrogate Vessel / Summary Application—orders for Release, Summary Disposal

Legal Issues

  1. 1 Whether HNA was owner of surrogate ship Bulk Peace for purposes of s 19(b) of Admiralty Act 1988 (Cth)
  2. 2 Whether satisfactory evidence exists to enliven jurisdiction under ss 19(a) and 19(b) of Admiralty Act
  3. 3 Meaning of 'owner' and evidence required to demonstrate ownership under s 19(b)

Ratio Decidendi

The arrest of Bulk Peace as a surrogate vessel must be set aside and proceedings dismissed, as there is insufficient evidence to demonstrate HNA as the owner of Bulk Peace for the purposes of s 19(b) of the Admiralty Act 1988 (Cth). Summary disposal is appropriate due to lack of jurisdiction; and there is no basis for adjournment as further evidence is unlikely to be obtained.

Court Disposition

Application for release of Bulk Peace granted; arrest set aside; proceedings dismissed; Plaintiff ordered to pay costs; adjournment application dismissed.

Orders

  • The Writ filed on 17 March 2014 and arrest warrant issued in respect of Bulk Peace are set aside.
  • Proceedings dismissed pursuant to rule 26.01 of Federal Court Rules 2011 (Cth) for lack of jurisdiction under s 19 of Admiralty Act 1988 (Cth).