Plaus Shipping Ltd v Due Srl (A112/2011) [2011] ZAKZDHC 52 (25 November 2011)

Plaus Shipping Ltd v Due Srl (A112/2011) [2011] ZAKZDHC 52 (25 November 2011)

The court held that Augusta Due Srl was entitled to seek security for its claims for costs arising from arbitration and English court proceedings, even though the costs had not yet been taxed or quantified. The right to claim costs is not independent of the underlying merits but arises from the original arbitration agreement and the commencement of proceedings. The claim for costs existed prior to Furtrans disposing of ownership of the MV 'Lido', satisfying the association requirement under the Admiralty Jurisdiction Regulation Act. The authorities support the proposition that a claim for costs can be pursued independently and security for such claims can be granted. The application for...

Citation
[2011] ZAKZDHC 52
Parties
Applicant: Plaus Shipping Limited; Respondent: Augusta Due Srl
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
25 November 2011
Case Number
A112/2011
Procedural Posture
Urgent Application / Application for Reconsideration of Ex Parte Arrest Order
Outcome
Application for reconsideration dismissed; quantum of security reduced.
Judges
Lopes
Legal Topics
Admiralty Jurisdiction Regulation Act, Security for Costs, Associated Ship Arrest, Arbitration Costs, Enforceability of Costs Awards
Admiralty and Maritime Admiralty Jurisdiction Regulation Act Security for Costs Associated Ship Arrest Arbitration Costs Enforceability of Costs Awards

Case Brief

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Parties

Plaus Shipping Limited

Applicant

Augusta Due Srl

Respondent

Procedural Posture

Urgent Application / Application for Reconsideration of Ex Parte Arrest Order

Legal Issues

  1. 1 Whether Augusta Due Srl's claim for costs arising from arbitration and English court proceedings is enforceable for the purpose of obtaining security by arrest of an associated ship under s 5(3)(a) of the Admiralty Jurisdiction Regulation Act.
  2. 2 Whether a claim for costs can stand independently and be the subject of an action and security prior to taxation or agreement.
  3. 3 Whether the right to claim costs arose before Furtrans disposed of ownership of the MV 'Lido', thus satisfying the association requirement under the Act.

Ratio Decidendi

The court held that Augusta Due Srl was entitled to seek security for its claims for costs arising from arbitration and English court proceedings, even though the costs had not yet been taxed or quantified. The right to claim costs is not independent of the underlying merits but arises from the original arbitration agreement and the commencement of proceedings. The claim for costs existed prior to Furtrans disposing of ownership of the MV 'Lido', satisfying the association requirement under the Admiralty Jurisdiction Regulation Act. The authorities support the proposition that a claim for costs can be pursued independently and security for such claims can be granted. The application for...

Court Disposition

Application for reconsideration dismissed; quantum of security reduced.

Orders

  • The quantum of security to be provided is reduced to £2 352 286,65.
  • The application for reconsideration of the ex parte arrest order is dismissed.