Allied Marine Services Ltd v LMJ International Ltd: Mareva Injunction and Third-Party Rights
Allied Marine Services Ltd (AMS) applied for a Mareva injunction against LMJ International Ltd (LMJ) to prevent them from disposing of a cargo of iron ore. The High Court of Singapore, presided over by Justice Tan Lee Meng, dismissed the application, holding that the potential inconvenience and disruption to third parties outweighed AMS's interest in securing its debt, despite AMS's offer of indemnity. The underlying dispute arose from a charterparty agreement and an unsatisfied arbitration award in favor of AMS.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application for a Mareva injunction dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Application for a Mareva injunction was dismissed due to potential adverse effects on third parties, despite an offer of indemnity.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Allied Marine Services Ltd | Plaintiff | Corporation | Application for a Mareva injunction dismissed | Lost | |
| LMJ International Ltd | Defendant | Corporation | Application for a Mareva injunction dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tan Lee Meng | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Toh Chen Han | Kenneth Tan Partnership |
| Christopher Chong | Kenneth Tan Partnership |
4. Facts
- AMS, the disponent owner of the vessel Marylaki, chartered the vessel to LMJ.
- Disputes arose between AMS and LMJ regarding the charterparty.
- AMS commenced arbitration proceedings in London.
- The arbitrator issued an award in favor of AMS, requiring LMJ to pay US$431,704.94 plus interest.
- AMS was granted leave by the English High Court to enforce the arbitration award.
- LMJ has no business presence in Singapore.
- AMS applied for a Mareva injunction to restrain LMJ from disposing of a cargo of iron ore on board the vessel Alitis.
5. Formal Citations
- Allied Marine Services Ltd v LMJ International Ltd, Suit 672/2005, SIC 4873/2005, [2005] SGHC 201
6. Timeline
| Date | Event |
|---|---|
| AMS chartered the vessel Marylaki to LMJ. | |
| Arbitrator issued an award in favor of AMS. | |
| AMS was granted leave by the English High Court to enforce the arbitration award. | |
| Application for a Mareva injunction dismissed. |
7. Legal Issues
- Mareva Injunctions
- Outcome: The court dismissed the application for a Mareva injunction.
- Category: Procedural
- Related Cases:
- [1982] 1 WLR 539
- Third Party Rights
- Outcome: The court held that the rights of third parties must prevail over the plaintiff's desire to secure debts when a Mareva injunction substantially interferes with the third party's business.
- Category: Substantive
- Related Cases:
- [1982] 1 WLR 539
8. Remedies Sought
- Mareva Injunction
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Galaxia Maritime SA v Mineralimportexport | English Court of Appeal | Yes | [1982] 1 WLR 539 | England and Wales | Cited for the principle that the rights of third parties must prevail over the plaintiff's desire to secure debts when a Mareva injunction substantially interferes with the third party's business. |
| Clipper Maritime Co Ltd of Monrovia v Mineralimportexport (The Marie Leonhardt) | English High Court | Yes | [1981] 2 Lloyd’s Rep 458 | England and Wales | Cited as an example where a Mareva injunction was granted with respect to cargo, but distinguished because the consequences of delay would likely fall on the defendant time charterer rather than the shipowner. Also, it was stated that this case must now be viewed in light of Galaxia Maritime SA v Mineralimportexport. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Mareva injunction
- Charterparty
- Arbitration award
- Third party rights
- Balance of convenience
- Indemnity
15.2 Keywords
- Mareva injunction
- third party rights
- shipping
- arbitration
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Mareva Injunction | 95 |
| Injunctions | 90 |
| Civil Practice | 75 |
| Arbitration | 60 |
| Shipping Law | 50 |
16. Subjects
- Civil Procedure
- Shipping Law
- Arbitration