Hung Vuong-2: Choice of Jurisdiction & Bill of Lading Dispute

In Hung Vuong-2, the Singapore Court of Appeal heard an appeal regarding the dismissal of a stay application. The respondents sued the appellants for breach of duty related to a bill of lading. The appellants sought a stay based on a jurisdiction clause in the bill of lading, which stipulated that disputes should be resolved in Vietnam. The Court of Appeal dismissed the appeal, finding that there was no genuine dispute and that the appellants were seeking a technical advantage. The court held that the respondents, as holders of the bill of lading, were entitled to sue for the loss.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Admiralty

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The Court of Appeal dismissed an appeal for a stay of proceedings, ruling that there was no real dispute regarding a jurisdiction clause in a bill of lading.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
AppellantsAppellantIndividualAppeal DismissedLost
RespondentsRespondentCorporationStay Application UpheldWon

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJudge of AppealYes
L P TheanJudge of AppealNo
Yong Pung HowChief JusticeNo

4. Counsels

Counsel NameOrganization
Philip TayRajah & Tann
Chin Song YeowRajah & Tann
Haridass AjaibHaridass Ho & Partners

4. Facts

  1. Pacific Sugar shipped a cargo of raw sugar on the appellants' vessel.
  2. The bill of lading was issued 'to order' to Pacific Sugar.
  3. Pacific Sugar endorsed the bill of lading in blank to the respondents.
  4. The appellants delivered the cargo to Guangxi without production of the bill of lading.
  5. The respondents did not receive full payment for the cargo.
  6. The bill of lading contained a jurisdiction clause referring disputes to Vietnam.

5. Formal Citations

  1. Hung Vuong-2, CA 135/1999, [2000] SGCA 25

6. Timeline

DateEvent
Contract signed between respondents and Guangxi Yulin Prefecture Economic Trade Development Co
Shipment of cargo to be effected between 15 December 1997 and 15 February 1998
Respondents purchased cargo from Pacific Sugar
Appellants issued a 'to order' B/L to Pacific Sugar
Huang Vuong-3 delivered the cargo to Guangxi without the production of any of the copies of the B/L
Institution of Admiralty in Rem No 733 of 1998
Appellants applied to have the proceedings stayed on the ground that there was a jurisdiction clause in the B/L
Appeal dismissed

7. Legal Issues

  1. Choice of Jurisdiction
    • Outcome: The court held that strong cause had been shown to disregard the jurisdiction clause because there was no genuine dispute.
    • Category: Procedural
    • Sub-Issues:
      • Exclusive jurisdiction clause
      • Strong cause to disregard jurisdiction clause
      • Genuine dispute
  2. Bill of Lading
    • Outcome: The court held that the respondents, as holders of the bill of lading with a blank endorsement, had acquired title to the cargo and were entitled to sue for the loss.
    • Category: Substantive
    • Sub-Issues:
      • Blank endorsement
      • Holder of bill of lading
      • Transfer of title

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Breach of Duty

10. Practice Areas

  • Commercial Litigation
  • Admiralty Litigation
  • Shipping Disputes

11. Industries

  • Shipping
  • Commodities Trading

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Amerco Timbers Pte Ltd v Chatsworth Timber Corp Pte LtdSingapore Court of AppealYes[1975-77] SLR 258SingaporeCited for the factors to consider when determining if 'strong cause' has been shown to disregard a jurisdiction clause.
Jag ShaktiPrivy CouncilNo[1986] 1 Lloyds Rep 1SingaporeCited regarding the correct measure of damage.
Standard Chartered Bank v Pakistan National Shipping CorpEngland and Wales High Court (Commercial Court)No[1995] 2 Lloyds Rep 365England and WalesCited as an example where a court refused a stay because there was no real dispute.
The Asian PlutusHigh Court of MalayaNo[1990] 2 MLJ 449MalaysiaCited for the proposition that disputes about foreign law should be resolved by the courts of that foreign country.
The Atlantic SongEngland and Wales High Court (Queen's Bench Division)No[1983] 3 Lloyds Rep 394England and WalesCited as an example where a court refused a stay because there was no real dispute.
The EleftheriaEngland and Wales High Court (Admiralty Division)Yes[1969] 1 Lloyds Rep 237England and WalesCited for the factors to consider when determining if 'strong cause' has been shown to disregard a jurisdiction clause.
The Frank PaisEngland and Wales High Court (Queen's Bench Division)No[1986] 1 Lloyds Rep 529England and WalesCited as an example where a court refused a stay because there was no real dispute.
The Jian HeSingapore Court of AppealYes[2000] 1 SLR 8SingaporeCited for the principle that the court has jurisdiction to determine whether a dispute exists and can refuse a stay if there is no real dispute.
The Vishva PrabhaEngland and Wales High Court (Admiralty Division)No[1979] 2 Lloyds Rep 286England and WalesCited as an example where a court refused a stay because there was no real dispute.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Maritime Code of VietnamVietnam
Maritime Code of VietnamVietnam
Maritime Code of VietnamVietnam

15. Key Terms and Keywords

15.1 Key Terms

  • Bill of Lading
  • Jurisdiction Clause
  • Blank Endorsement
  • Holder of Bill of Lading
  • Strong Cause
  • Legal Cargo Receiver

15.2 Keywords

  • Bill of Lading
  • Jurisdiction Clause
  • Shipping
  • Vietnam
  • Singapore
  • Admiralty

17. Areas of Law

Area NameRelevance Score
Admiralty and Maritime Law90
Bills of Lading70
Jurisdiction Clause50
Civil Procedure40
Foreign Law30
Breach of Contract30
Contract Law20
Property Law10

16. Subjects

  • Shipping
  • Admiralty
  • Jurisdiction
  • International Trade