Ceto Shipping Corporation v Savory Shipping Inc [2023] EWHC 2995 (Comm) (24 November 2023)

Security for costs is ordered only in relation to the damages claim for breach of charter, not the whole claim, because the evidence does not establish that an order would stifle the claim and because the counterclaim mirrors the claim and the defendant declined to give a Dumrul undertaking.

Citation: [2023] EWHC 2995 (Comm)
Parties: Claimant/charterers: Ceto Shipping Corporation; Defendant/owners: Savory Shipping Inc
Jurisdiction: England and Wales
Judgment Date: 24 November 2023
Procedural Posture: Application for Security for Costs / Post Pleadings, Interlocutory Application
Outcome: Application for security for costs granted in part
Legal Topics: Security for Costs, Impecuniosity, Counterclaims, Ownership of Vessel, Declaratory Relief

Commercial Law Shipping Law Civil Procedure Security for Costs Impecuniosity Counterclaims Ownership of Vessel Declaratory Relief

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Full judgment text Downloadable case file Legal principles 3 Authorities cited 13 Party arguments 2 Amounts and remedies 10

Parties

Ceto Shipping Corporation

Claimant/charterers

Savory Shipping Inc

Defendant/owners

Procedural Posture

Application for Security for Costs / Post Pleadings, Interlocutory Application

Legal Issues

1 Whether security for costs should be ordered against the claimant given alleged impecuniosity
2 Whether an order for security would stifle a genuine claim
3 Whether security should be refused where the counterclaim mirrors the claim

Ratio Decidendi

Court Disposition

Application for security for costs granted in part

Orders

Security for costs ordered only in respect of the damages claim for breach of charter, in a sum to be determined by the court.
Payment to be staged; if not paid, the damages claim (not the whole claim) will be stayed.