The Owners and/or Demise Charterers of the Ship or Vessel “TS Singapore” v. The Owners and/or Demise Charterers of the Ship or Vessel “Xin Nan Tai 77” AND ANOTHER

The Owners and/or Demise Charterers of the Ship or Vessel “TS Singapore” v. The Owners and/or Demise Charterers of the Ship or Vessel “Xin Nan Tai 77” AND ANOTHER

The court held Jakarta's offers to Xin Nan Tai (first and second Jakarta offers) were effective; Xin Nan Tai failed to beat those offers and must therefore bear costs in accordance with the offers and RHC O22 consequences where applicable (indemnity costs and enhanced interest after the cut‑off date for the 1st collision; full costs after expiry for the 2nd treated as an open offer). The court also held Singapore's second purported sanctioned offer failed RHC O22 r5(7) and therefore could not be relied upon as a sanctioned offer nor taken into account as a Calderbank offer because Singapore could have made a compliant sanctioned offer. Costs orders between all parties were made...

Citation
The Owners and/or Demise Charterers of the Ship or Vessel “TS Singapore” v. The Owners and/or Demise Charterers of the Ship or Vessel “Xin Nan Tai 77” AND ANOTHER
Parties
Plaintiff (owners of Vessel MCC Jakarta): Owners and/or Demise Charterers of MCC Jakarta; Defendant (owners of Vessel Xin Nan Tai): Owners and/or Demise Charterers of Xin Nan Tai; Plaintiff/counterparty (owners of Vessel TS Singapore): Owners and/or Demise Charterers of TS Singapore
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 November 2017
Case Number
HCAJ49/2013
Procedural Posture
Admiralty Action in Rem (collision) / Costs Determination Following Liability Trial and Judgment
Outcome
Costs orders made as set out between the parties; liberty to apply
Legal Topics
Collision Apportionment, Sanctioned Offers (order 22), Calderbank/without Prejudice Save as to Costs Offers, Service of Process for Offers, Indemnity Costs, Enhanced Interest on Costs, Taxation of Costs
Source Language
EN
Admiralty Law Maritime Collision Law Civil Procedure Costs Law Collision Apportionment Sanctioned Offers (order 22) Calderbank/without Prejudice Save as to Costs Offers Service of Process for Offers +3 more

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Parties

Owners and/or Demise Charterers of MCC Jakarta

Plaintiff (owners of Vessel MCC Jakarta)

Owners and/or Demise Charterers of Xin Nan Tai

Defendant (owners of Vessel Xin Nan Tai)

Owners and/or Demise Charterers of TS Singapore

Plaintiff/counterparty (owners of Vessel TS Singapore)

Procedural Posture

Admiralty Action in Rem (collision) / Costs Determination Following Liability Trial and Judgment

Legal Issues

  1. 1 Whether costs should follow apportionment of liability or be displaced by sanctioned offers under RHC O22
  2. 2 Whether Jakarta's and Singapore's offers complied with RHC O22 and were valid sanctioned offers
  3. 3 Whether offers including terms as to costs are invalid per RHC O22 or only invalid if they conflict with mandatory rule consequences

Ratio Decidendi

The court held Jakarta's offers to Xin Nan Tai (first and second Jakarta offers) were effective; Xin Nan Tai failed to beat those offers and must therefore bear costs in accordance with the offers and RHC O22 consequences where applicable (indemnity costs and enhanced interest after the cut‑off date for the 1st collision; full costs after expiry for the 2nd treated as an open offer). The court also held Singapore's second purported sanctioned offer failed RHC O22 r5(7) and therefore could not be relied upon as a sanctioned offer nor taken into account as a Calderbank offer because Singapore could have made a compliant sanctioned offer. Costs orders between all parties were made...

Court Disposition

Costs orders made as set out between the parties; liberty to apply

Orders

  • Between Singapore and Jakarta: For costs incurred up to and including 6 January 2016 Singapore to pay 5% of Jakarta's costs of determining liability for the 2nd Collision; Jakarta to pay 19% of Singapore's costs of determining liability for the 2nd Collision; no order between them for costs of determining liability...
  • Between Xin Nan Tai and Jakarta (1st Collision): Xin Nan Tai to pay 80% of Jakarta's costs of determining liability for the 1st Collision, taxed party/party if not agreed up to 13 January 2014 and thereafter on an indemnity basis; Xin Nan Tai to pay interest on Jakarta's such costs after 13 January 2014 at the rate...