Chapman Marine Pty Ltd v Wilhelmsen Lines A/S [1999] FCA 241

Chapman Marine Pty Ltd v Wilhelmsen Lines A/S [1999] FCA 241

Chapman's argument against a stay failed because the earlier reasons did not amount to substantive orders and findings on Conaust's conduct were expressed subject to the limitation provisions and Himalaya clause. Although Chapman rejected offers that were relevant to costs, the proceeding involved difficult questions, Conaust was found solely responsible for the damage to the cruiser, and Chapman's conduct was not so imprudent as to justify indemnity costs. A fair costs disposition was therefore to require Chapman to pay Wilhelmsen's costs from 31 March 1998, no order for earlier costs, Wilhelmsen to receive costs of its cross-claims and indemnity from Conaust, Conaust to bear its...

Jurisdiction
Australia
Judgment Date
11 March 1999
Procedural Posture
Federal Court of Australia Civil Proceeding Concerning Damage to Chapman's Cruiser and Claims Involving Limitation Provisions, a Himalaya Clause, Indemnity and Stay / Ex Tempore Reasons for Judgment on Costs and Consequential Orders After Reasons Delivered on 5 March 1999
Outcome
Judgment for Chapman against Wilhelmsen in the sum of US$500 together with interest under section 51A of the Federal Court of Australia Act 1976; Chapman's proceeding against Conaust stayed; Wilhelmsen entitled to indemnity from Conaust; costs orders foreshadowed and parties ordered to bring in short minutes.
Legal Topics
['stay of Proceedings' 'party Party Costs' 'indemnity Costs' 'offer of Compromise' 'bill of Lading' 'himalaya Clause' 'limitation of Liability' 'indemnity']
['civil Procedure' 'costs' 'admiralty and Maritime' 'contract'] ['stay of Proceedings' 'party Party Costs' 'indemnity Costs' 'offer of Compromise' 'bill of Lading' 'himalaya Clause' 'limitation of Liability' 'indemnity']

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Procedural Posture

Federal Court of Australia Civil Proceeding Concerning Damage to Chapman's Cruiser and Claims Involving Limitation Provisions, a Himalaya Clause, Indemnity and Stay / Ex Tempore Reasons for Judgment on Costs and Consequential Orders After Reasons Delivered on 5 March 1999

Legal Issues

  1. 1 ["Whether Chapman's claim against Conaust should be stayed despite earlier reasons addressing Conaust's liability subject to limitation provisions and the Himalaya clause." 'Whether rejection of settlement offers justified costs orders against Chapman, including indemnity costs.' 'What costs orders should be made between Chapman, Wilhelmsen and Conaust, including in respect of cross-claims and indemnity.' "Whether Wilhelmsen was entitled to be indemnified by Conaust for its liability to Chapman and for costs of defending Chapman's claim."]

Ratio Decidendi

Chapman's argument against a stay failed because the earlier reasons did not amount to substantive orders and findings on Conaust's conduct were expressed subject to the limitation provisions and Himalaya clause. Although Chapman rejected offers that were relevant to costs, the proceeding involved difficult questions, Conaust was found solely responsible for the damage to the cruiser, and Chapman's conduct was not so imprudent as to justify indemnity costs. A fair costs disposition was therefore to require Chapman to pay Wilhelmsen's costs from 31 March 1998, no order for earlier costs, Wilhelmsen to receive costs of its cross-claims and indemnity from Conaust, Conaust to bear its...

Court Disposition

Judgment for Chapman against Wilhelmsen in the sum of US$500 together with interest under section 51A of the Federal Court of Australia Act 1976; Chapman's proceeding against Conaust stayed; Wilhelmsen entitled to indemnity from Conaust; costs orders foreshadowed and parties ordered to bring in short minutes.

Orders

  • ['The parties bring in short minutes of order to give effect to these reasons.' 'Judgment for Chapman against Wilhelmsen in the sum of US$500, together with interest under section 51A of the Federal Court of Australia Act 1976.' "Chapman's proceeding against Conaust is to be stayed." "Chapman is to bear Wilhelmsen's...