Réseua de Transport D'électricité v Costain Limited & Anor

Réseua de Transport D'électricité v Costain Limited & Anor

Stema UK is barred from advancing its Article 1(4) limitation defence in these proceedings because the Court of Appeal's prior order was clear, final, and unambiguous in denying Stema UK any right to limit liability under the Limitation Convention. The issue could and should have been raised in the earlier limitation proceedings, and the attempt to raise it now constitutes an abuse of process under the rule in Henderson v Henderson. Both cause of action estoppel and the public interest in finality preclude Stema UK from re-litigating the limitation issue.

Parties
Claimant/second Applicant: Réseau de Transport d’Électricité; Defendant/first Applicant: Costain Limited; Defendant/first Applicant: Network Rail Infrastructure Limited; Third Party/respondent: Stema Shipping (UK) Limited; Fourth Party: Stema Shipping; Fifth Party: Splitt Chartering APS; Sixth Party: Mibau Deutschland GmbH; Seventh Party: AHT Bremen Fighter GmbH & Co. KG (in Liquidation); Eighth Party: Halcrow Group Limited; Ninth Party: Marine Management Organisation; Tenth Party: Maritime and Coastguard Agency
Jurisdiction
England and Wales
Judgment Date
20 January 2025
Procedural Posture
Admiralty/commercial / Strike Out Application—interlocutory Judgment
Outcome
Application granted—Stema UK's Article 1(4) limitation defence struck out.
Legal Topics
Limitation of Liability for Maritime Claims, Cause of Action Estoppel, Issue Estoppel, Abuse of Process, Henderson V Henderson Rule
Admiralty Civil Procedure Res Judicata Limitation of Liability for Maritime Claims Cause of Action Estoppel Issue Estoppel Abuse of Process Henderson V Henderson Rule

Case Brief

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Parties

Réseau de Transport d’Électricité

Claimant/second Applicant

Costain Limited

Defendant/first Applicant

Network Rail Infrastructure Limited

Defendant/first Applicant

Stema Shipping (UK) Limited

Third Party/respondent

Stema Shipping

Fourth Party

Splitt Chartering APS

Fifth Party

Mibau Deutschland GmbH

Sixth Party

AHT Bremen Fighter GmbH & Co. KG (in Liquidation)

Seventh Party

Halcrow Group Limited

Eighth Party

Marine Management Organisation

Ninth Party

Maritime and Coastguard Agency

Tenth Party

Procedural Posture

Admiralty/commercial / Strike Out Application—interlocutory Judgment

Legal Issues

  1. 1 Whether Stema UK is barred from raising a limitation of liability defence under Article 1(4) of the Limitation Convention due to res judicata, cause of action estoppel, issue estoppel, or abuse of process (Henderson v Henderson)

Ratio Decidendi

Stema UK is barred from advancing its Article 1(4) limitation defence in these proceedings because the Court of Appeal's prior order was clear, final, and unambiguous in denying Stema UK any right to limit liability under the Limitation Convention. The issue could and should have been raised in the earlier limitation proceedings, and the attempt to raise it now constitutes an abuse of process under the rule in Henderson v Henderson. Both cause of action estoppel and the public interest in finality preclude Stema UK from re-litigating the limitation issue.

Court Disposition

Application granted—Stema UK's Article 1(4) limitation defence struck out.

Orders

  • Stema UK is not permitted to advance its Article 1(4) limitation defence in these proceedings.
  • The relevant paragraphs of Stema UK's pleadings are struck out.