SILVER SEN NAVIGATION INC. v. XIAMEN SHENG LI ECONOMY AND TRADING DEVELOPMENT CO. AND ANOTHER

SILVER SEN NAVIGATION INC. v. XIAMEN SHENG LI ECONOMY AND TRADING DEVELOPMENT CO. AND ANOTHER

The summons for summary judgment was dismissed because the 2nd Defendant's defencesraised (illegality/ultra vires under PRC law, lack of authority to execute the Guarantees and the limited reliance in the Chinese proceedings) were arguable and not frivolous or hopeless, the estoppel argument was not pleaded and was insufficient to dispose of the triable issues, and the matters required trial rather than determination under Order 14.

Citation
SILVER SEN NAVIGATION INC. v. XIAMEN SHENG LI ECONOMY AND TRADING DEVELOPMENT CO. AND ANOTHER
Parties
1st Plaintiff: Silver Sen Navigation Inc.; 1st Defendant: Xiamen Sheng Li Economy And Trading Development Co.; 2nd Defendant: Overseas Chinese Banking Corporation Ltd.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 October 1998
Case Number
HCCL110/1996
Procedural Posture
Commercial List (court of First Instance) / Order 14 Summary Judgment Application (interlocutory)
Outcome
Plaintiff's summons dated 9 April 1998 dismissed; Order nisi that Plaintiff pay the Defendants' costs of and occasioned by the Order 14 application, to be taxed if not agreed.
Legal Topics
Guarantee, Estoppel (approbation and Reprobation), Capacity and Ultra Vires, Choice of Law, Jurisdiction, Novation, Summary Judgment (order 14)
Source Language
EN
Maritime Law Contract Law Commercial Law Private International Law Procedural Law Guarantee Estoppel (approbation and Reprobation) Capacity and Ultra Vires +4 more

Case Brief

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Parties

Silver Sen Navigation Inc.

1st Plaintiff

Xiamen Sheng Li Economy And Trading Development Co.

1st Defendant

Overseas Chinese Banking Corporation Ltd.

2nd Defendant

Procedural Posture

Commercial List (court of First Instance) / Order 14 Summary Judgment Application (interlocutory)

Legal Issues

  1. 1 Whether the 2nd Defendant is estopped by approbation and reprobation from denying the validity of the Second Guarantee
  2. 2 Whether the guarantees were validly executed and whether the signatory had authority
  3. 3 Whether the underlying charterparties and freight payment agreements were illegal or ultra vires under PRC law (lex causae) such that estoppel cannot validate them

Ratio Decidendi

The summons for summary judgment was dismissed because the 2nd Defendant's defencesraised (illegality/ultra vires under PRC law, lack of authority to execute the Guarantees and the limited reliance in the Chinese proceedings) were arguable and not frivolous or hopeless, the estoppel argument was not pleaded and was insufficient to dispose of the triable issues, and the matters required trial rather than determination under Order 14.

Court Disposition

Plaintiff's summons dated 9 April 1998 dismissed; Order nisi that Plaintiff pay the Defendants' costs of and occasioned by the Order 14 application, to be taxed if not agreed.

Orders

  • The Plaintiff's summons dated 9 April 1998 is dismissed.
  • There will be an Order nisi that the Plaintiff do pay the Defendants the costs of and occasioned by the Order 14 application, to be taxed if not agreed.