Stellar Shiipping Company LLP v Cosco (Dalian) Shipyard Company Ltd

Stellar Shiipping Company LLP v Cosco (Dalian) Shipyard Company Ltd

There was no sufficient urgency to justify the buyers' ex parte application for an injunction under s.44 Arbitration Act 1996; the sellers were not shown to be likely to breach Article 11.5 or act dishonestly, and damages would be an adequate remedy for the buyers. The injunction must be set aside.

Parties
Claimant: Stellar Shipping Company LLP; Defendant: COSCO (Dalian) Shipyard Company Limited
Jurisdiction
England and Wales
Judgment Date
12 May 2011
Procedural Posture
Commercial Court Application to Discharge Ex Parte Injunction / Hearing of Application to Discharge Injunction; Post Judgment Costs and Refusal of Leave to Appeal
Outcome
Injunction set aside; application for leave to appeal refused; costs awarded to sellers with partial exceptions.
Legal Topics
Interim Injunctions, Adequacy of Damages, Urgency Under Arbitration Act 1996 S.44, Shipbuilding Contracts
Arbitration Commercial Law Contract Law 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

Commercial Court Application to Discharge Ex Parte Injunction / Hearing of Application to Discharge Injunction; Post Judgment Costs and Refusal of Leave to Appeal

Legal Issues

  1. 1 Whether there was sufficient urgency to justify ex parte injunctive relief under s.44 Arbitration Act 1996
  2. 2 Whether damages would be an adequate remedy for the buyers
  3. 3 Whether the sellers would act in breach of Article 11.5 of the contract

Ratio Decidendi

There was no sufficient urgency to justify the buyers' ex parte application for an injunction under s.44 Arbitration Act 1996; the sellers were not shown to be likely to breach Article 11.5 or act dishonestly, and damages would be an adequate remedy for the buyers. The injunction must be set aside.

Court Disposition

Injunction set aside; application for leave to appeal refused; costs awarded to sellers with partial exceptions.

Orders

  • Buyers to pay sellers' costs, except for costs of hearings on 15th and 20th April (no order for those).
  • Buyers to make a payment on account of £50,000 within 14 days.