Vasiliy Golovnin: Arrest of Vessel, Issue Estoppel & Abuse of Process
In The "Vasiliy Golovnin" case before the High Court of Singapore on 2007-07-31, Credit Agricole (Suisse) SA and Banque Cantonale De Geneve SA (the banks) appealed against the setting aside of the arrest of The Vasiliy Golovnin, a sister ship of The Chelyabinsk, and the striking out of their claim. Far Eastern Shipping Co Plc (FESCO) cross-appealed against the decision not to award damages for the arrest. The court dismissed FESCO's appeal and allowed in part the bank's appeal, finding that the banks had failed to disclose material facts, leading to the setting aside of the warrant of arrest, but that the claim for damage to cargo could continue in personam.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed in part and allowed in part.
1.3 Case Type
Admiralty
1.4 Judgment Type
Judgment reserved
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case regarding the arrest of a vessel, issue estoppel, and abuse of process. The court set aside the warrant of arrest.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Credit Agricole (Suisse) SA | Appellant, Plaintiff | Corporation | Appeal allowed in part | Partial | Vivian Ang, Kenny Yap, Leona Wong |
| Banque Cantonale De Geneve SA | Appellant, Plaintiff | Corporation | Appeal allowed in part | Partial | Vivian Ang, Kenny Yap, Leona Wong |
| Far Eastern Shipping Co Plc | Respondent, Defendant, Appellant | Corporation | Appeal dismissed | Lost | Steven Chong, Kohe Noor bte M Hasan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tan Lee Meng | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Vivian Ang | Allen & Gledhill LLP |
| Kenny Yap | Allen & Gledhill LLP |
| Leona Wong | Allen & Gledhill LLP |
| Steven Chong | Rajah & Tann |
| Kohe Noor bte M Hasan | Rajah & Tann |
4. Facts
- The banks arrested The Chelyabinsk in Lome on 2006-02-21.
- The banks arrested The Vasiliy Golovnin in Singapore on 2006-03-18.
- FESCO chartered The Chelyabinsk to STC, who sub-chartered it to Rustal.
- Three of the four bills of lading named Lome as the port of discharge.
- The Lome Court ordered the discharge of cargo at Lome.
- The Lome Court released The Chelyabinsk from arrest.
- The banks did not appeal the Lome Release Order.
5. Formal Citations
- Vasiliy Golovnin, Adm in Rem 25/2006, RA 214/2006, 216/2006, [2007] SGHC 116
6. Timeline
| Date | Event |
|---|---|
| FESCO chartered The Chelyabinsk to Sea Transport Contractors Ltd. | |
| Rustal requested STC to switch the bills of lading. | |
| The switch was scheduled to take place at the office of FESCO’s chartering brokers in Surrey, England. | |
| STC revoked its instructions to discharge the cargo at Douala. | |
| STC instructed FESCO not to switch the bills of lading. | |
| STC instructed the vessel to proceed to Lome to discharge the cargo. | |
| FESCO received a request from Banque Cantonale to discharge the cargo of rice at Douala. | |
| STC obtained an order from the Lome Court for the detention of 15,541 mt of rice on board the chartered vessel. | |
| The vessel arrived at Lome and was served the STC Court Order. | |
| Rustal obtained an order from the Lome Court to prevent the discharge of the cargo. | |
| STC obtained a court order authorising the discharge of the cargo. | |
| The Lome Court set aside Ruling No 2081/2005 and ordered the cargo to be discharged in Lome. | |
| The Lome Court ordered the lifting of the stay of execution of Ruling No 0023/2006. | |
| The banks obtained a court order in Lome for the arrest of the chartered vessel. | |
| FESCO succeeded in having the arrest of the chartered vessel set aside by the Lome Court. | |
| The chartered vessel left Lome. | |
| The time allowed for an appeal against the Lome Release Order expired. | |
| The banks arrested The Vasiliy Golovnin in Singapore. | |
| FESCO’s memorandum of appearance was filed. | |
| The Lome Court of Appeal reversed Ruling No 0023/2006. | |
| The Assistant Registrar set aside the arrest of The Vasiliy Golovnin and struck out the banks’ writ against FESCO. | |
| Judgment reserved. |
7. Legal Issues
- Abuse of Process
- Outcome: The court considered whether the arrest of a vessel in Singapore, previously arrested in another jurisdiction and released by court order, constitutes an abuse of process.
- Category: Procedural
- Issue Estoppel
- Outcome: The court considered whether issue estoppel applied, preventing the re-litigation of issues already decided by the Lome court.
- Category: Procedural
- Non-disclosure of Material Facts
- Outcome: The court found that the banks had failed to disclose material facts at the ex parte hearing for the warrant of arrest, justifying the setting aside of the warrant.
- Category: Procedural
- Wrongful Arrest
- Outcome: The court considered whether FESCO was entitled to damages for wrongful arrest, ultimately ruling against it.
- Category: Substantive
- Breach of Contract
- Outcome: The court found that FESCO had not breached the contract evidenced by the bills of lading by discharging the entire cargo of rice at Lome.
- Category: Substantive
8. Remedies Sought
- Damages
- Declaration for an indemnity
- Indemnity
9. Cause of Actions
- Breach of Contract
- Conversion
- Wrongful Detention
- Wrongful Interference
- Breach of Bailment
- Negligence
10. Practice Areas
- Commercial Litigation
- Admiralty
- Shipping
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The “Rainbow Spring” | Court of Appeal | Yes | [2003] 3 SLR 362 | Singapore | Cited for the principle that the arresting party is obliged to make full and frank disclosure of all the material facts to the court in an ex parte application for a warrant of arrest of a vessel. |
| The “Damavand” | Court of Appeal | Yes | [1993] 2 SLR 717 | Singapore | Cited for the test of materiality for non-disclosure. |
| Intergraph Corporation v Solid Systems Cad Services Ltd | N/A | Yes | [1993] FSR 617 | N/A | Cited regarding the need to guide the judge through material presented in an ex parte application. |
| National Bank of Sharjah v Dellborg | N/A | Yes | [1993] 2 Bank LR 109 | N/A | Cited for the principle that facts should be disclosed in the affidavit and not just in the exhibits. |
| House of Spring Gardens Ltd v Waite | N/A | Yes | [1991] 1 QB 241 | N/A | Cited for the principle that a foreign judgment can give rise to an issue estoppel. |
| The Tjakskemolen | N/A | Yes | [1997] 2 Lloyd’s Rep 476 | N/A | Cited for the principle that a second arrest may be an abuse of process. |
| The Sennar | N/A | Yes | [1985] 1 WLR 490 | N/A | Cited for the definition of 'merits of the case'. |
| The Irini A (No 2) | N/A | Yes | [1999] 1 Lloyd’s Rep 189 | N/A | Cited for the effect of the French words “l’execution provisoire” in the Lome Release Order. |
| Tan Eng Khiam v Ultra Realty Pte Ltd | N/A | Yes | [1991] SLR 798 | N/A | Cited for the principle that the court will let the plaintiff proceed with the action unless his case is wholly and clearly unarguable. |
| Leduc v Ward | N/A | Yes | (1888) 20 QBD 475 | N/A | Cited for the principle that antecedent arrangements between the shipper and the carrier do not bind an indorsee of a bill of lading. |
| Nobel’s Explosives Company v Jenkins and Company | N/A | No | [1896] 2 QB 326 | N/A | Cited and distinguished regarding the duty to care for goods. |
| The Iran Bohanar | N/A | No | [1983] 2 Lloyd’s Rep 620 | N/A | Cited and distinguished regarding the duty to deviate to another port. |
| The EVPO AGSA | N/A | No | [1992] 2 SLR 487 | N/A | Cited regarding instructions from charterers. |
| The August 8 | N/A | Yes | [1983] 2 AC 450 | N/A | Cited for the principle that once a defendant in an admiralty action in rem has entered an appearance, the action continues against him as an action in personam. |
| The “Ohm Mariana” ex “Peony” | Court of Appeal | Yes | [1993] 2 SLR 698 | Singapore | Cited for the principle that even if the action in rem had been wrongly instituted, it can continue as a claim in personam. |
| The Evangelismos | N/A | Yes | (1858) 12 Moo PC 352 | N/A | Cited for the test for awarding damages for wrongful arrest. |
| The Kiku Pacific | N/A | Yes | [1999] 2 SLR 595 | N/A | Cited for the test for awarding damages for wrongful arrest. |
| The” Inai Selasih” | N/A | Yes | [2006] 2 SLR 181 | N/A | Cited regarding malice in wrongful arrest. |
| The AAV | N/A | Yes | [2001] 1 SLR 207 | N/A | Cited regarding non-disclosure of material facts leading to damages for wrongful arrest. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| High Court (Admiralty Jurisdiction) Act (Cap 123, 1985 Rev Ed) | Singapore |
| Rules of Court (Cap 322, R5, 2006 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arrest of vessel
- Issue estoppel
- Abuse of process
- Non-disclosure
- Material facts
- Sister ship
- Bills of lading
- Charterparty
- Lome Release Order
- African port bill of lading
15.2 Keywords
- Admiralty
- Shipping
- Arrest of vessel
- Issue estoppel
- Singapore
- High Court
16. Subjects
- Admiralty
- Shipping
- Civil Procedure
17. Areas of Law
- Admiralty Law
- Civil Procedure
- Shipping Law
- Admiralty Jurisdiction
- Issue Estoppel