Vitol Bahrain EC v Nasdec General Trading Llc & Ors [2014] EWHC 984 (Comm) (04 April 2014)

Vitol Bahrain EC v Nasdec General Trading Llc & Ors [2014] EWHC 984 (Comm) (04 April 2014)

At the time permission to serve out was granted, England was not clearly or distinctly the appropriate forum for the dispute; Fujairah was a more appropriate forum as all relevant parties were amenable to its jurisdiction and the core dispute was between Vitol and Fal Oil over title to the cargoes. The English proceedings were parasitic on the real dispute, and there was no independent claim justifying English jurisdiction.

Citation
[2014] EWHC 984 (Comm)
Parties
Claimant: Vitol Bahrain EC; First Defendant: Nasdec General Trading LLC; Second Defendant: Fal Oil Company Limited, Dubai; Third Defendant: Fal Oil Company Limited, Sharjah; Fourth Defendant: Standard Chartered Bank
Jurisdiction
England and Wales
Judgment Date
04 April 2014
Procedural Posture
Commercial Court Application to Set Aside Permission for Service Out of Jurisdiction / Application by Third Defendant to Set Aside Ex Parte Order for Service Out of Jurisdiction; Cross Application for Case Management Stay
Outcome
Application to set aside permission to serve out of jurisdiction granted; case management stay granted as to claims against Nasdec and Standard Chartered Bank.
Legal Topics
Jurisdiction, Forum Non Conveniens, Service Out of Jurisdiction, Declaratory Relief, Title to Goods, Conflict of Laws
Private International Law Commercial Law Jurisdiction Forum Non Conveniens Service Out of Jurisdiction Declaratory Relief Title to Goods Conflict of Laws

Case Brief

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Parties

Vitol Bahrain EC

Claimant

Nasdec General Trading LLC

First Defendant

Fal Oil Company Limited, Dubai

Second Defendant

Fal Oil Company Limited, Sharjah

Third Defendant

Standard Chartered Bank

Fourth Defendant

Procedural Posture

Commercial Court Application to Set Aside Permission for Service Out of Jurisdiction / Application by Third Defendant to Set Aside Ex Parte Order for Service Out of Jurisdiction; Cross Application for Case Management Stay

Legal Issues

  1. 1 Whether England was the appropriate forum for the dispute at the time permission to serve out was granted
  2. 2 Whether permission to serve out of the jurisdiction should be set aside
  3. 3 Whether a case management stay or forum non conveniens stay should be granted

Ratio Decidendi

At the time permission to serve out was granted, England was not clearly or distinctly the appropriate forum for the dispute; Fujairah was a more appropriate forum as all relevant parties were amenable to its jurisdiction and the core dispute was between Vitol and Fal Oil over title to the cargoes. The English proceedings were parasitic on the real dispute, and there was no independent claim justifying English jurisdiction.

Court Disposition

Application to set aside permission to serve out of jurisdiction granted; case management stay granted as to claims against Nasdec and Standard Chartered Bank.

Orders

  • Permission to serve Fal Oil out of the jurisdiction set aside.
  • Case management stay granted as to claims against Nasdec and Standard Chartered Bank pending outcome of Fujairah proceedings.