The Eternal Strength: Charterparty Breach & Admiralty Jurisdiction Dispute
In The Eternal Strength, the Singapore High Court addressed a dispute over admiralty jurisdiction concerning a charterparty breach. The plaintiffs, an Italian company, chartered the Eternal Strength and subsequently sub-chartered it to AWB Limited. Engine problems arose, allegedly due to the defendants' breach of the charterparty. The defendants applied to set aside the writ and cancel a letter of undertaking. The court dismissed the application to set aside the writ but allowed the application to cancel the letter of undertaking, permitting the plaintiffs to proceed against the defendants in personam.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendants’ application to set aside the writ was dismissed, but their application to cancel the letter of undertaking was allowed.
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case regarding a charterparty breach and a dispute over admiralty jurisdiction. The court dismissed the application to set aside the writ.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Wellston Financial Ltd | Defendant, Applicant | Corporation | Application to set aside the writ dismissed | Lost | |
| Unknown | Plaintiff, Respondent | Corporation | Action in rem wrongly instituted | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Joyce Low Wei Lin | Assistant Registrar | Yes |
4. Counsels
4. Facts
- Plaintiffs chartered the Eternal Strength from PT Gesuri Lloyd.
- Plaintiffs sub-chartered the ship to AWB Limited.
- The ship suffered engine problems allegedly due to the defendants’ breach of the charterparty.
- The ship was sold to the defendants, Wellston Financial Ltd.
- Plaintiffs filed a writ in rem against the Eternal Strength.
- Defendants provided a letter of undertaking to the plaintiffs.
- Defendants applied to set aside the writ and cancel the letter of undertaking.
5. Formal Citations
- The Eternal Strength, Adm in Rem 245/2003, SIC 4636/2004, [2006] SGHC 12
6. Timeline
| Date | Event |
|---|---|
| Plaintiffs chartered the Eternal Strength from PT Gesuri Lloyd. | |
| Plaintiffs sub-chartered the ship to AWB Limited. | |
| The ship suffered engine problems. | |
| The ship was sold to the defendants, Wellston Financial Ltd. | |
| Plaintiffs filed a writ in rem against the Eternal Strength. | |
| Defendants provided a letter of undertaking to the plaintiffs. | |
| Defendants filed an application to set aside the writ and cancel the letter of undertaking. | |
| Judgment issued. |
7. Legal Issues
- Admiralty Jurisdiction
- Outcome: The court held that the in rem action was wrongly instituted but the plaintiffs are entitled to proceed against the defendants in personam.
- Category: Jurisdictional
- Sub-Issues:
- Invocation of in rem jurisdiction
- Requirements of section 4(4) of the High Court (Admiralty Jurisdiction) Act
- Breach of Charterparty
- Outcome: The court did not make a definitive ruling on the breach of charterparty itself, focusing instead on the jurisdictional issues.
- Category: Substantive
- Sub-Issues:
- Failure to keep the ship in an efficient state
- Failure to prosecute the voyage with utmost despatch
8. Remedies Sought
- Setting aside of writ of summons
- Cancellation of letter of undertaking
- Deduction of costs of hire
- Compensation for expenses incurred
- Indemnity for liability to AWB Limited
9. Cause of Actions
- Breach of Charterparty
10. Practice Areas
- Admiralty Litigation
- Commercial Litigation
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Jian He | Court of Appeal | Yes | [2000] 1 SLR 8 | Singapore | Cited for the principle that an application under Order 12 rule 7(1) of the Rules of Court applies where the jurisdiction of the Court is being challenged. |
| The Alexandrea | High Court | Yes | [2002] 3 SLR 56 | Singapore | Cited to distinguish between the existence of admiralty jurisdiction under section 3(1) of the High Court (Admiralty Jurisdiction) Act and the availability of an action in rem under section 4. |
| The Rainbow Spring | High Court | Yes | [2003] 3 SLR 362 | Singapore | Cited as an example where the relief granted when the Court has no jurisdiction to entertain an action in rem is the setting aside of the writ. |
| The AA V | High Court | Yes | [2001] 1 SLR 207 | Singapore | Cited as an example where the relief granted when the Court has no jurisdiction to entertain an action in rem is the setting aside of the writ. |
| The Fierbinti | Court of Appeal | Yes | [1994] 3 SLR 864 | Singapore | Cited for the principle that in rem jurisdiction must be invoked by either actual service of the writ on the ship or arrest of the ship. |
| The Trade Resolve | High Court | Yes | [1999] 4 SLR 424 | Singapore | Cited for the principle that in rem jurisdiction must be invoked by either actual service of the writ on the ship or arrest of the ship. |
| The Lloydiana | Unknown | Yes | [1983] 2 Lloyd’s Rep 313 | Unknown | Cited for the proposition that an action in personam is maintainable independently of the availability of an action in rem. |
| The Ohm Mariana | Court of Appeal | Yes | [1993] 2 SLR 698 | Singapore | Cited for the proposition that even if the action in rem was instituted in error, the action in personam was maintainable on a point of jurisdiction because the subject matter of the claim was before the court. |
| The Gemma | Unknown | Yes | [1899] P 285 | Unknown | Cited for the principle that an action, though originally commenced in rem becomes a personal action against the defendant upon appearance, such that the action continues both in rem and in personam. |
13. Applicable Rules
| Rule Name |
|---|
| Order 12 rule 7(1) of the Rules of Court |
| Order 70 rule 7(1)(b) of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| High Court (Admiralty Jurisdiction) Act | Singapore |
| Section 3(1)(h) of the High Court (Admiralty Jurisdiction) Act | Singapore |
| Section 4(4) of the High Court (Admiralty Jurisdiction) Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Charterparty
- Writ in rem
- Letter of undertaking
- Admiralty jurisdiction
- In personam
- In rem
- Sheriff
- Proceeds of sale
- Service of writ
- Appearance under protest
15.2 Keywords
- Admiralty jurisdiction
- Charterparty
- Writ in rem
- Singapore High Court
- Shipping dispute
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Admiralty and Maritime Law | 90 |
| Shipping Law | 90 |
| Contract Law | 60 |
| Breach of Contract | 60 |
| Charterparty Disputes | 50 |
| Civil Procedure | 50 |
| Property Law | 30 |
| Asset Recovery | 30 |
16. Subjects
- Admiralty
- Shipping
- Civil Procedure
- Jurisdiction