CDE SA v Sure Wind Marine Ltd Re SB Seaguard

CDE SA v Sure Wind Marine Ltd Re SB Seaguard

The correct test for extension of time under s.190(5) Merchant Shipping Act 1995 remains the two-stage test from The Al Tabith: the applicant must first show a good reason for the failure to commence proceedings within the limitation period; only then will the court consider exercising its discretion. The claimant failed to demonstrate a good reason, as ignorance of the time bar, ongoing negotiations, and the conduct of the defendant's P&I Club did not suffice. The application was also not made promptly after the time bar was raised. Accordingly, the application for extension of time was dismissed.

Parties
Claimant: CDE S. A.; Defendant: Sure Wind Marine Ltd
Jurisdiction
England and Wales
Judgment Date
14 April 2015
Procedural Posture
Admiralty Collision Claim / Application for Extension of Time to Commence Proceedings
Outcome
Application dismissed
Legal Topics
Limitation of Actions, Extension of Time, Collision Claims, Discretionary Powers, Rules of Court

Case Brief

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Parties

CDE S. A.

Claimant

Sure Wind Marine Ltd

Defendant

Procedural Posture

Admiralty Collision Claim / Application for Extension of Time to Commence Proceedings

  1. 1 What is the correct test for granting an extension of time under s.190(5) Merchant Shipping Act 1995?
  2. 2 Did the claimant have a 'good reason' for failing to commence proceedings within the statutory limitation period?
  3. 3 Should the court exercise its discretion to extend time in the circumstances of this case?

Ratio Decidendi

The correct test for extension of time under s.190(5) Merchant Shipping Act 1995 remains the two-stage test from The Al Tabith: the applicant must first show a good reason for the failure to commence proceedings within the limitation period; only then will the court consider exercising its discretion. The claimant failed to demonstrate a good reason, as ignorance of the time bar, ongoing negotiations, and the conduct of the defendant's P&I Club did not suffice. The application was also not made promptly after the time bar was raised. Accordingly, the application for extension of time was dismissed.

Court Disposition

Application dismissed

Orders

  • Claimant's application for extension of time under s.190(5) Merchant Shipping Act 1995 is dismissed.