GLENCORE GRAIN BV v THE SHIP LANCELOT V [2015] NZHC 2052

GLENCORE GRAIN BV v THE SHIP LANCELOT V [2015] NZHC 2052

The court ordered appraisement and sale pendente lite because the heavy and continuing costs of arrest, the risk of material deterioration and diminution of the vessel's value, the owner's failure or inability to provide security and absence of evidence that delay would secure funds, and the undisputed crew claims...

Source-derived case information.

Citation
[2015] NZHC 2052
Parties
First Plaintiff: Glencore Grain BV; Second Plaintiff: Glencore Grain (NZ) Limited; Defendant (in Rem): The Ship Lancelot V; Caveators / Interveners: The Master and Crew of the Ship MV Lancelot V
Court
High Court
Jurisdiction
New Zealand
Judgment Date
26 August 2015
Procedural Posture
Admiralty / Maritime (in Rem Action) / Application for Appraisement and Sale Pendente Lite (interim)
Outcome
Application granted: the ship Lancelot V to be appraised and sold pendente lite
Legal Topics
Ship Arrest, Appraisement and Sale Pendente Lite, Priority of Claims, Crew Wages, Mortgage Priority, Security for Release, Perishable/deteriorating Property, Humanitarian Considerations
Admiralty Maritime Law Civil Procedure Contract Shipping Law Ship Arrest Appraisement and Sale Pendente Lite Priority of Claims +5 more

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Parties

Glencore Grain BV

First Plaintiff

Glencore Grain (NZ) Limited

Second Plaintiff

The Ship Lancelot V

Defendant (in Rem)

The Master and Crew of the Ship MV Lancelot V

Caveators / Interveners

Procedural Posture

Admiralty / Maritime (in Rem Action) / Application for Appraisement and Sale Pendente Lite (interim)

Legal Issues

  1. 1 Whether the court should order appraisement and sale of the arrested vessel pendente lite
  2. 2 Whether the ongoing costs of arrest and risk of deterioration justify immediate sale
  3. 3 Priority of claimants including crew wages and Registrar's costs

Ratio Decidendi

The court ordered appraisement and sale pendente lite because the heavy and continuing costs of arrest, the risk of material deterioration and diminution of the vessel's value, the owner's failure or inability to provide security and absence of evidence that delay would secure funds, and the undisputed crew claims together justified creating a realizable fund for claimants under High Court Rules r25.51 and r7.56 and established admiralty precedent.

Court Disposition

Application granted: the ship Lancelot V to be appraised and sold pendente lite

Orders

  • The ship Lancelot V is to be appraised and sold by public auction, private treaty or tender at the Registrar's discretion on terms acceptable to the Registrar pursuant to r25.51 and r7.56
  • Advertising for sale is to commence as soon as reasonably practicable