Oceanbulk Shipping & Trading SA v TMT Asia Ltd & Ors

Oceanbulk Shipping & Trading SA v TMT Asia Ltd & Ors

Evidence of without prejudice exchanges is admissible to the extent it would be admissible had the exchanges not been without prejudice, including for the interpretation of the Settlement Agreement, the issue of remoteness of damages, and to support a plea of estoppel. The interests of justice and the exceptions to the exclusionary rule justify this approach. There was no waiver of privilege by Oceanbulk through case management conduct.

Parties
Claimant: Oceanbulk Shipping & Trading SA; Defendants: TMT Asia Limited & 3 Others
Jurisdiction
England and Wales
Judgment Date
29 July 2009
Procedural Posture
Commercial Litigation / Interlocutory Application (strike Out, Amendment, Admissibility of Evidence)
Outcome
Application to strike out and to exclude evidence refused; permission to amend granted, subject to further submissions on wording.
Legal Topics
Without Prejudice Privilege, Interpretation of Settlement Agreements, Estoppel, Admissibility of Evidence, Remoteness of Damages
Contract Law Civil Procedure Evidence Without Prejudice Privilege Interpretation of Settlement Agreements Estoppel Admissibility of Evidence Remoteness of Damages

Case Brief

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Parties

Oceanbulk Shipping & Trading SA

Claimant

TMT Asia Limited & 3 Others

Defendants

Procedural Posture

Commercial Litigation / Interlocutory Application (strike Out, Amendment, Admissibility of Evidence)

Legal Issues

  1. 1 Whether evidence of without prejudice negotiations is admissible to interpret a settlement agreement
  2. 2 Whether such evidence is admissible to support a plea of estoppel
  3. 3 Whether such evidence is admissible to contest the remoteness of damages

Ratio Decidendi

Evidence of without prejudice exchanges is admissible to the extent it would be admissible had the exchanges not been without prejudice, including for the interpretation of the Settlement Agreement, the issue of remoteness of damages, and to support a plea of estoppel. The interests of justice and the exceptions to the exclusionary rule justify this approach. There was no waiver of privilege by Oceanbulk through case management conduct.

Court Disposition

Application to strike out and to exclude evidence refused; permission to amend granted, subject to further submissions on wording.

Orders

  • TMT permitted to rely on without prejudice exchanges for interpretation, remoteness, and estoppel.
  • TMT permitted to amend pleading to allege estoppel, subject to further submissions.