Ceto Shipping Corporation v Savory Shipping Inc

Ceto Shipping Corporation v Savory Shipping Inc

The court found that Ceto Shipping Corporation had failed to comply with orders for security for costs and payment of outstanding costs, without good reason or sufficient evidence of impecuniosity. The court held that a contingent unless order for strike out of the damages claim was appropriate to enforce compliance, and that a stay would not be a satisfactory case management solution. The court rejected the argument that previous orders limited the available sanction to a stay, finding that circumstances had changed and a strike out was justified.

Parties
Claimant: Ceto Shipping Corporation; Defendant: Savory Shipping Inc
Jurisdiction
England and Wales
Judgment Date
08 December 2024
Procedural Posture
Commercial Court Claim / Application for Contingent Strike Out Order Under CPR R 3.4.2(c)
Outcome
Application granted for a contingent unless order for strike out unless compliance within a specified period.
Legal Topics
Security for Costs, Strike Out Applications, Costs Orders, Impecuniosity, Case Management
Civil Procedure Commercial Law Security for Costs Strike Out Applications Costs Orders Impecuniosity Case Management

Case Brief

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Parties

Ceto Shipping Corporation

Claimant

Savory Shipping Inc

Defendant

Procedural Posture

Commercial Court Claim / Application for Contingent Strike Out Order Under CPR R 3.4.2(c)

Legal Issues

  1. 1 Whether the claimant's damages claim should be struck out unless it complies with orders for security for costs and payment of outstanding costs
  2. 2 Whether a stay or strike out is the appropriate sanction for non-compliance with security for costs and costs orders
  3. 3 Whether impecuniosity or other grounds justify non-compliance

Ratio Decidendi

The court found that Ceto Shipping Corporation had failed to comply with orders for security for costs and payment of outstanding costs, without good reason or sufficient evidence of impecuniosity. The court held that a contingent unless order for strike out of the damages claim was appropriate to enforce compliance, and that a stay would not be a satisfactory case management solution. The court rejected the argument that previous orders limited the available sanction to a stay, finding that circumstances had changed and a strike out was justified.

Court Disposition

Application granted for a contingent unless order for strike out unless compliance within a specified period.

Orders

  • Unless Ceto Shipping Corporation pays the outstanding security for costs and costs orders within a period to be determined, its damages claim will be struck out.