Lauritzencool Ab v Lady Navigation Inc

Lauritzencool Ab v Lady Navigation Inc

The court held that an interim injunction restraining the owners from employing the vessels inconsistently with the charter-parties is permissible and does not amount to specific performance. The relationship is not akin to a contract for personal services, and damages would not be an adequate remedy for Lauritzen due to the unique value of the vessels and the difficulty in quantifying loss of market share and competitiveness. The balance of convenience favours granting the injunction.

Parties
Claimant: LauritzenCool AB; Defendant: Lady Navigation Inc
Jurisdiction
England and Wales
Judgment Date
12 November 2004
Procedural Posture
Commercial Arbitration Related Application / Interim Injunction Application
Outcome
Interim injunction granted in part
Legal Topics
Interim Injunctions, Charter Party Enforcement, Adequacy of Damages, Specific Performance, Negative Covenants, Competition Law (article 81 EC Treaty)
Commercial Law Arbitration Competition Law Interim Injunctions Charter Party Enforcement Adequacy of Damages Specific Performance Negative Covenants +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 17 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

LauritzenCool AB

Claimant

Lady Navigation Inc

Defendant

Procedural Posture

Commercial Arbitration Related Application / Interim Injunction Application

Legal Issues

  1. 1 Whether the court can grant an interim injunction restraining the owners from acting inconsistently with the charter-parties pending arbitration
  2. 2 Whether such an injunction amounts to specific performance of a charter-party
  3. 3 Whether damages would be an adequate remedy for the claimant if the injunction is refused

Ratio Decidendi

The court held that an interim injunction restraining the owners from employing the vessels inconsistently with the charter-parties is permissible and does not amount to specific performance. The relationship is not akin to a contract for personal services, and damages would not be an adequate remedy for Lauritzen due to the unique value of the vessels and the difficulty in quantifying loss of market share and competitiveness. The balance of convenience favours granting the injunction.

Court Disposition

Interim injunction granted in part

Orders

  • Owners restrained from employing the vessels 'Lady Racisce' and 'Lady Korcula' in a manner inconsistent with the charter-parties pending arbitration
  • Owners restrained from fixing the vessels with any third party for employment prior to the expiry dates of the charters