Tecoil Shipping Ltd v Neptune EHF & Ors [2021] EWHC 1582 (Admlty) (15 June 2021)

Tecoil Shipping Ltd v Neptune EHF & Ors [2021] EWHC 1582 (Admlty) (15 June 2021)

The default judgment against Neptune EHF was properly entered under the Civil Procedure Rules, as no acknowledgement of service was filed and the requirement to file a collision statement of case was not triggered. The in rem judgment is binding on Neptune in subsequent in personam proceedings because Neptune was indirectly impleaded through the res. There is no real prospect of Neptune successfully defending the claim or reducing the award below the LOU limit, and the defendants' procedural objections are without merit. Setting aside the judgment would be disproportionate and an abuse of process.

Citation
[2021] EWHC 1582 (Admlty)
Parties
Claimant: TECOIL SHIPPING LTD; Defendant: NEPTUNE EHF; Defendant: RSG UNDERWRITING MANAGERS EUROPE LTD (trading as "LODESTAR MARINE"); Defendant: ROYAL & SUN ALLIANCE INSURANCE PLC
Jurisdiction
England and Wales
Judgment Date
15 June 2021
Procedural Posture
Admiralty Collision Claim (in Rem and in Personam) / Application to Set Aside Default Judgment and Application for Summary Judgment; Judgment Reserved, Partial Promulgation Following Settlement
Outcome
Application to set aside default judgment refused; summary judgment application not determined due to settlement.
Legal Topics
Default Judgment, Setting Aside Judgment, In Rem Proceedings, In Personam Proceedings, Letters of Undertaking (lou), Collision Claims, Jurisdiction, Summary Judgment
Admiralty Law Civil Procedure Default Judgment Setting Aside Judgment In Rem Proceedings In Personam Proceedings Letters of Undertaking (lou) Collision Claims +2 more

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Parties

TECOIL SHIPPING LTD

Claimant

NEPTUNE EHF

Defendant

RSG UNDERWRITING MANAGERS EUROPE LTD (trading as "LODESTAR MARINE")

Defendant

ROYAL & SUN ALLIANCE INSURANCE PLC

Defendant

Procedural Posture

Admiralty Collision Claim (in Rem and in Personam) / Application to Set Aside Default Judgment and Application for Summary Judgment; Judgment Reserved, Partial Promulgation Following Settlement

Legal Issues

  1. 1 Whether default judgment against Neptune EHF should be set aside as of right or in the court's discretion
  2. 2 Whether an in rem judgment is binding on the shipowner in subsequent in personam proceedings
  3. 3 Whether the Letter of Undertaking (LOU) responds to an in rem judgment or only to an in personam judgment

Ratio Decidendi

The default judgment against Neptune EHF was properly entered under the Civil Procedure Rules, as no acknowledgement of service was filed and the requirement to file a collision statement of case was not triggered. The in rem judgment is binding on Neptune in subsequent in personam proceedings because Neptune was indirectly impleaded through the res. There is no real prospect of Neptune successfully defending the claim or reducing the award below the LOU limit, and the defendants' procedural objections are without merit. Setting aside the judgment would be disproportionate and an abuse of process.

Court Disposition

Application to set aside default judgment refused; summary judgment application not determined due to settlement.

Orders

  • Default judgment against Neptune EHF stands; application to set aside refused.
  • No order on summary judgment application due to settlement.