ASSET WONDER LTD v. STELLAR SHIPPING CO. LLC, THE BAREBOAT CHARTERER OF THE SHIP “RUBY STAR”

ASSET WONDER LTD v. STELLAR SHIPPING CO. LLC, THE BAREBOAT CHARTERER OF THE SHIP “RUBY STAR”

Court held that plaintiff was entitled to judgment on admissions in rem for the amounts admitted by the defendant; the charterparty gave the owner a sole discretion to sell the vessel (clause 26.4) which negates the defendant's argument that the owner breached clause 27.2 by declining a private sale; clause 27.3 does not require the owner to sell before seeking judgment; defendant failed to show a defence to the AED 7,761,931.95 claim so summary judgment was granted for that AED sum, while defendant was given leave to defend the USD 924,195.46 claim.

Citation
ASSET WONDER LTD v. STELLAR SHIPPING CO. LLC, THE BAREBOAT CHARTERER OF THE SHIP “RUBY STAR”
Parties
Plaintiff (registered Owner): ASSET WONDER LIMITED; Defendant (bareboat Charterer): STELLAR SHIPPING CO. LLC
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
2 December 2013
Case Number
HCAJ129/2013
Procedural Posture
Admiralty Action in Rem / Application for Final Judgment on Admissions and Summary Judgment (decision)
Outcome
Judgment for plaintiff in part: in rem judgment on admissions for admitted sums; summary judgment in personam for AED 7,761,931.95; leave to defend granted for USD 924,195.46; costs awarded to plaintiff as specified.
Legal Topics
Charterparty Termination, Hire Payments, Mitigation Obligation, Summary Judgment, Judgment on Admissions, In Rem Arrest, Sale Pendente Lite, Costs
Source Language
EN
Admiralty/maritime Law Contract Law Civil Procedure Charterparty Termination Hire Payments Mitigation Obligation Summary Judgment Judgment on Admissions +3 more

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Parties

ASSET WONDER LIMITED

Plaintiff (registered Owner)

STELLAR SHIPPING CO. LLC

Defendant (bareboat Charterer)

Procedural Posture

Admiralty Action in Rem / Application for Final Judgment on Admissions and Summary Judgment (decision)

Legal Issues

  1. 1 Whether plaintiff entitled to judgment on admissions in rem for sums admitted in defence
  2. 2 Whether owner breached mitigation obligation (clause 27.2) by declining proposed private sale
  3. 3 Whether plaintiff must first recoup from sale proceeds before pursuing debtor/charterer

Ratio Decidendi

Court held that plaintiff was entitled to judgment on admissions in rem for the amounts admitted by the defendant; the charterparty gave the owner a sole discretion to sell the vessel (clause 26.4) which negates the defendant's argument that the owner breached clause 27.2 by declining a private sale; clause 27.3 does not require the owner to sell before seeking judgment; defendant failed to show a defence to the AED 7,761,931.95 claim so summary judgment was granted for that AED sum, while defendant was given leave to defend the USD 924,195.46 claim.

Court Disposition

Judgment for plaintiff in part: in rem judgment on admissions for admitted sums; summary judgment in personam for AED 7,761,931.95; leave to defend granted for USD 924,195.46; costs awarded to plaintiff as specified.

Orders

  • Final judgment on admissions in rem for AED 43,799,927.05 (remaining unpaid hire as admitted)
  • Final judgment on admissions in rem for AED 9,592,904.00 (earned hire as admitted)