Stellar Shiipping Company LLP v Cosco (Dalian) Shipyard Company Ltd [2011] EWHC 1278 (Comm) (12 May 2011)

Stellar Shiipping Company LLP v Cosco (Dalian) Shipyard Company Ltd [2011] EWHC 1278 (Comm) (12 May 2011)

There was no sufficient urgency to justify the ex parte injunction under s.44 Arbitration Act 1996, and damages would be an adequate remedy for the buyers; therefore, the injunction must be set aside.

Citation
[2011] EWHC 1278 (Comm)
Parties
Claimant: Stellar Shipping Company LLP; Defendant: COSCO (Dalian) Shipyard Company Limited
Jurisdiction
England and Wales
Judgment Date
12 May 2011
Procedural Posture
Application to Discharge Ex Parte Injunction / Inter Partes Hearing on Application to Set Aside Injunction
Outcome
Injunction set aside; application to discharge granted; leave to appeal refused.
Legal Topics
Interim Injunctions, Adequacy of Damages, Urgency Under Arbitration Act 1996 S.44, Shipbuilding Contracts
Commercial Law Arbitration Interim Injunctions Adequacy of Damages Urgency Under Arbitration Act 1996 S.44 Shipbuilding Contracts

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Parties

Stellar Shipping Company LLP

Claimant

COSCO (Dalian) Shipyard Company Limited

Defendant

Procedural Posture

Application to Discharge Ex Parte Injunction / Inter Partes Hearing on Application to Set Aside Injunction

Legal Issues

  1. 1 Whether there was sufficient urgency to justify the grant of an ex parte injunction under s.44 Arbitration Act 1996
  2. 2 Whether damages would be an adequate remedy for the claimant
  3. 3 Whether the absence of notice to the defendant was justified

Ratio Decidendi

There was no sufficient urgency to justify the ex parte injunction under s.44 Arbitration Act 1996, and damages would be an adequate remedy for the buyers; therefore, the injunction must be set aside.

Court Disposition

Injunction set aside; application to discharge granted; leave to appeal refused.

Orders

  • Buyers to pay sellers' costs, except for costs of hearings on 15th and 20th April (no order for those dates).
  • Payment on account of £50,000 to be made, normally within 14 days.