INTRALINE RESOURCES SDN BHD v. THE OWNERS OF THE SHIP OR VESSEL "HUA TIAN LONG"

INTRALINE RESOURCES SDN BHD v. THE OWNERS OF THE SHIP OR VESSEL "HUA TIAN LONG"

The judge exercised discretion to fix security at a level sufficient to cover the plaintiff's reasonably arguable best case while guarding against oppressive demands: the affidavit leading to arrest was held sufficient, liability issues could not be resolved at interlocutory stage, speculative heads were rejected, and the court apportioned and rounded down recoverable heads to arrive at security of US$65,000,000.

Citation
INTRALINE RESOURCES SDN BHD v. THE OWNERS OF THE SHIP OR VESSEL "HUA TIAN LONG"
Parties
Plaintiff/respondent: Intraline Resources Sdn Bhd; Defendant/applicant: The Owners of the Ship or Vessel Hua Tian Long (Guangzhou Salvage)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 May 2008
Case Number
HCAJ59/2008
Procedural Posture
Admiralty Action in Rem (arrest of Vessel) / Interlocutory Application to Fix Amount of Security for Release of Arrested Vessel (motion Hearing)
Outcome
Application granted in part: security for release fixed at US$65,000,000; application for interim stay declined and adjourned sine die with liberty to restore; costs of the motion reserved to the trial judge.
Legal Topics
Arrest of Vessel, Security/bail for Release, Assessment of Quantum of Claim, Abuse of Process, Interlocutory Relief
Source Language
EN
Admiralty Law Maritime Law Civil Procedure Arrest of Vessel Security/bail for Release Assessment of Quantum of Claim Abuse of Process Interlocutory Relief

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Parties

Intraline Resources Sdn Bhd

Plaintiff/respondent

The Owners of the Ship or Vessel Hua Tian Long (Guangzhou Salvage)

Defendant/applicant

Procedural Posture

Admiralty Action in Rem (arrest of Vessel) / Interlocutory Application to Fix Amount of Security for Release of Arrested Vessel (motion Hearing)

Legal Issues

  1. 1 What amount of security is sufficient to secure the plaintiff's reasonably arguable best case
  2. 2 Whether the affidavit leading to the warrant of arrest provided sufficient material to justify arrest
  3. 3 Whether the security demanded by the plaintiff is excessive or oppressive

Ratio Decidendi

The judge exercised discretion to fix security at a level sufficient to cover the plaintiff's reasonably arguable best case while guarding against oppressive demands: the affidavit leading to arrest was held sufficient, liability issues could not be resolved at interlocutory stage, speculative heads were rejected, and the court apportioned and rounded down recoverable heads to arrive at security of US$65,000,000.

Court Disposition

Application granted in part: security for release fixed at US$65,000,000; application for interim stay declined and adjourned sine die with liberty to restore; costs of the motion reserved to the trial judge.

Orders

  • Defendant to provide security in sum of US$65,000,000 in form acceptable to the plaintiff or as determined by the Registrar of the High Court
  • Security to be provided on condition that plaintiff, by 4pm on 16 May 2008, amend the writ of summons dated 21 April 2008 to include the plaintiff's address (Intraline Resources Sdn Bhd)