Moondance Maritime Enterprises SA v Carbofer Maritime Trading APS [2012] EWHC 3618 (Comm) (14 December 2012)

Moondance Maritime Enterprises SA v Carbofer Maritime Trading APS [2012] EWHC 3618 (Comm) (14 December 2012)

The court has no jurisdiction to order payment into court under s. 70(7) without a costs assessment specifying a sum payable. Security for costs is justified under s. 70(6) and CPR 25.13(2)(g) because MME's asset arrangements make enforcement difficult, and the sums awarded in the separate arbitration do not constitute an equitable set-off or provide a discretionary reason to refuse security.

Citation
[2012] EWHC 3618 (Comm)
Parties
Claimant/owners: Moondance Maritime Enterprises SA; Defendant/charterers: Carbofer Maritime Trading APS
Jurisdiction
England and Wales
Judgment Date
14 December 2012
Procedural Posture
Commercial Court Arbitration Related Application / Post Arbitral Award, Applications Under Arbitration Act 1996 Sections 70(6) and 70(7)
Outcome
CMT's application for payment into court dismissed; application for security for costs granted.
Legal Topics
Security for Costs, Payment Into Court, Equitable Set Off, Costs in Arbitration, Enforcement of Arbitral Awards
Arbitration Commercial Law Shipping Law Security for Costs Payment Into Court Equitable Set Off Costs in Arbitration Enforcement of Arbitral Awards

Case Brief

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Parties

Moondance Maritime Enterprises SA

Claimant/owners

Carbofer Maritime Trading APS

Defendant/charterers

Procedural Posture

Commercial Court Arbitration Related Application / Post Arbitral Award, Applications Under Arbitration Act 1996 Sections 70(6) and 70(7)

Legal Issues

  1. 1 Whether the court has jurisdiction to order payment into court under s. 70(7) Arbitration Act 1996 absent a costs assessment
  2. 2 Whether security for costs should be ordered under s. 70(6) Arbitration Act 1996 and CPR 25.13
  3. 3 Whether sums awarded in a separate arbitration constitute a set-off or security for costs

Ratio Decidendi

The court has no jurisdiction to order payment into court under s. 70(7) without a costs assessment specifying a sum payable. Security for costs is justified under s. 70(6) and CPR 25.13(2)(g) because MME's asset arrangements make enforcement difficult, and the sums awarded in the separate arbitration do not constitute an equitable set-off or provide a discretionary reason to refuse security.

Court Disposition

CMT's application for payment into court dismissed; application for security for costs granted.

Orders

  • MME to provide security in the sum of £42,000 for CMT's costs in the s. 68 application within 21 days, failing which MME's s. 68 application will be dismissed.