Cosmos Shipping v Manson Shipping: Ship Management Agreement Dispute

Cosmos Shipping Co Ltd, a Korean corporation, sued Manson Shipping (Singapore) Pte Ltd in the High Court of Singapore, before G P Selvam J, on 6 July 2001, for US$193,574.44, alleging unpaid fees for goods and materials supplied. Cosmos Shipping had a ship management agreement with Best Luck Shipping Ltd, the original owner of the ship 'CRYSTAL' (later 'SEA LEADER B'). The court dismissed Cosmos Shipping's claim, finding no contractual relationship between Cosmos Shipping and Manson Shipping. The court determined that Cosmos Shipping contracted with Best Luck Shipping, not Manson Shipping, and that Manson Shipping was not liable for Best Luck Shipping's debts.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiffs’ claim is dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Cosmos Shipping sued Manson Shipping for unpaid ship management fees. The court dismissed the claim, finding no contractual relationship between the parties.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Cosmos Shipping Co LtdPlaintiffCorporationClaim DismissedLost
Manson Shipping (Singapore) Pte LtdDefendantCorporationJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
G P SelvamJudgeYes

4. Counsels

Counsel NameOrganization
Dennis TanAng & Partners
Goh Kok LengAng & Partners
Anthony LimAnthony & Wee Jin
Toh Wee JinAnthony & Wee Jin

4. Facts

  1. Cosmos Shipping entered into a ship management agreement with Best Luck Shipping Ltd.
  2. The agreement required Cosmos Shipping to manage the ship 'CRYSTAL', later renamed 'SEA LEADER B'.
  3. Cosmos Shipping sent statements of account to Best Luck Shipping initially.
  4. Later, statements were sent to Manson Marine Pte Ltd.
  5. Manson Marine Pte Ltd changed its name to Manson Shipping (S) Pte Ltd.
  6. The vessel was arrested and sold in Dubai for illegal activities.
  7. Cosmos Shipping attempted to recover charges from the proceeds of the sale.

5. Formal Citations

  1. Cosmos Shipping Co Ltd v Manson Shipping (Singapore) Pte Ltd, Suit 190/2000/K, [2001] SGHC 176

6. Timeline

DateEvent
Ship management agreement entered into between Cosmos Shipping and Best Luck Shipping Ltd.
Ship Management Agreement for Crew Manning entered into between Cosmos Shipping and Best Luck Shipping Ltd.
Name of the ship changed to 'SEA LEADER B'.
Manson Marine Pte Ltd changed name to Manson Shipping (S) Pte Ltd.
Vessel 'SEA LEADER B' arrested by U.S. Navy and sold by auction.
Action brought by Cosmos Shipping against Manson Shipping Pte Ltd.
Judgment issued.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found no contractual relationship between the plaintiffs and the defendants.
    • Category: Substantive
    • Sub-Issues:
      • Existence of a contract
      • Parties to the contract
  2. Agency
    • Outcome: The court found that the defendants did not act as agents for the owners in a way that would make them liable.
    • Category: Substantive
    • Sub-Issues:
      • Agent's liability
      • Disclosure of principal

8. Remedies Sought

  1. Monetary Damages
  2. Interest
  3. Costs

9. Cause of Actions

  • Breach of Contract
  • Failure to Pay for Goods and Services

10. Practice Areas

  • Commercial Litigation
  • Shipping
  • Agency

11. Industries

  • Shipping

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Stanley Yeung Kai Yung v Hong Kong and Shanghai Banking CorporationPrivy CouncilYes[1981] AC 787N/ACited for the principle that an agent may be personally liable if he personally contracts.
The SwanN/AYes[1968] 1 Lloyds LR 5N/ACited to illustrate the principle on the intention of contracting parties when A contracts with B on behalf of a disclosed principal C.
Maritime Stores Ltd v H. P. Marshall & Co LtdN/ANo[1963] 1 Lloyds LR 602N/ACited regarding the principle of past course of dealings.

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

  • Ship management agreement
  • Crew manning agreement
  • Statements of account
  • Illegal cargo
  • Repatriation
  • Agent
  • Principal

15.2 Keywords

  • ship management
  • contract
  • agency
  • shipping
  • Cosmos Shipping
  • Manson Shipping

17. Areas of Law

Area NameRelevance Score
Shipping Law75
Contract Law60
Agency Law50
Commercial Disputes40

16. Subjects

  • Contract Dispute
  • Shipping
  • Agency Law