UOB v Sim Marine: Mortgagee's Claim for Vessel Delivery & Damages for Detinue

United Overseas Bank Limited (UOB), as mortgagee of the vessel 'Equator Royal', brought an action against Sim Marine Services Pte Ltd in the High Court of Singapore on September 19, 2000, for failing to deliver the vessel after UOB terminated a facility to Thong Soon Lines Pte Ltd, the charterers of the vessel. The court, Woo Bih Li JC presiding, found that Sim Marine Services Pte Ltd had not discharged its burden of proving that it had terminated the charterparty and parted with possession of the vessel before UOB's demand. The court granted judgment in favor of UOB, awarding damages for detinue.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Admiralty

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

UOB, mortgagee of vessel 'Equator Royal', sued Sim Marine for failing to deliver the vessel. The court granted judgment for UOB, awarding damages for detinue.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
United Overseas Bank LimitedPlaintiffCorporationJudgment for PlaintiffWonAndrew Ong, Kendall Tan
Sim Marine Services Pte LtdDefendantCorporationJudgment against DefendantLostJeffrey Beh

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Andrew OngRajah & Tann
Kendall TanRajah & Tann
Jeffrey BehLee Bon Leong & Co

4. Facts

  1. United Overseas Bank Limited was the mortgagee of the vessel ‘Equator Royal’.
  2. The vessel was owned by Thong Soon Maritime Pte Ltd.
  3. The vessel was mortgaged to United Overseas Bank Limited for a facility granted to Thong Soon Lines Pte Ltd.
  4. Thong Soon Maritime Pte Ltd entered into a Barecon ’89 Charterparty with Sim Marine Services Pte Ltd.
  5. The facility to Thong Soon Lines Pte Ltd was terminated by United Overseas Bank Limited.
  6. United Overseas Bank Limited demanded payment from Thong Soon Maritime Pte Ltd for the monies outstanding.
  7. United Overseas Bank Limited commenced action against Thong Soon Lines Pte Ltd and Thong Soon Maritime Pte Ltd.
  8. United Overseas Bank Limited informed Sim Marine Services Pte Ltd of their interest in the vessel and asked that all future hire be paid directly to them.
  9. United Overseas Bank Limited obtained Judgment in Default of Appearance against Thong Soon Maritime Pte Ltd.
  10. Sim Marine Services Pte Ltd did not deliver up the vessel to United Overseas Bank Limited.

5. Formal Citations

  1. United Overseas Bank Limited v Sim Marine Services Pte Ltd, Adm in Per 137/1999, [2000] SGHC 191

6. Timeline

DateEvent
Charterparty dated 1 May 1998 entered into between Thong Soon Maritime Pte Ltd and Sim Marine Services Pte Ltd.
Facility to Thong Soon Lines terminated by letter from Plaintiffs’ solicitors.
Plaintiffs demanded payment from the Owners for the monies outstanding.
Defendants claim Charterparty was terminated.
Plaintiffs commenced action in Suit No 1219 of 1998.
Plaintiffs informed Defendants of their interest in the Vessel.
Plaintiffs obtained Judgment in Default of Appearance against the Owners.
Reminder sent by Plaintiffs’ solicitors seeking a response.
Third letter sent by Plaintiffs’ solicitors to the Defendants enclosing a copy of the default Judgment.
Judgment issued.

7. Legal Issues

  1. Detinue
    • Outcome: The court granted judgment in favor of the Plaintiffs against the Defendants for damages for detinue.
    • Category: Substantive
  2. Termination of Charterparty
    • Outcome: The court found that the Defendants failed to discharge the burden of proving that they had terminated the Charterparty and parted with possession of the Vessel before 13 August 1998.
    • Category: Substantive

8. Remedies Sought

  1. Delivery of Vessel
  2. Damages

9. Cause of Actions

  • Detinue

10. Practice Areas

  • Admiralty
  • Commercial Litigation

11. Industries

  • Banking
  • Shipping

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Mortgagee
  • Vessel
  • Charterparty
  • Detinue
  • Barecon '89
  • Off-hire

15.2 Keywords

  • mortgage
  • vessel
  • charterparty
  • detinue
  • shipping
  • banking

16. Subjects

  • Shipping
  • Banking
  • Mortgages

17. Areas of Law

  • Admiralty Law
  • Mortgages
  • Contract Law
  • Shipping Law