The “URSUS”: Stay of In Personam Proceedings Pending Arbitration

In The “URSUS” and other matters, the Singapore High Court addressed six admiralty proceedings concerning applications to dismiss the suits due to the absence of a served statement of claim or, alternatively, to stay the suits pending arbitration. The Plaintiff, Harms Bergung, Transport und Heavylift GmbH & Co KG, had issued in rem writs against the Defendants' vessels. The court dismissed the application to dismiss the suits but granted a stay of the in personam aspects of the suits pending arbitration, reasoning that the in rem jurisdiction had not been invoked and the vessels were not party to the arbitration agreement.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Prayer to dismiss the suits was dismissed; prayer for proceedings to be stayed pending arbitration was granted in part, ordering a stay of the in personam aspects of the suits.

1.3 Case Type

Admiralty

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court granted a stay of in personam proceedings pending arbitration, dismissing the application to dismiss the suits due to the absence of a served statement of claim.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Harms Bergung, Transport und Heavylift GmbH & Co KGPlaintiffCorporationPrayer to dismiss the suits was dismissed; prayer for proceedings to be stayed pending arbitration was granted in partPartialMary-Anne Chua
The "URSUS"DefendantOtherStay of in personam aspects of the SuitsPartialKhoo Eu Shen
The "URANUS"DefendantOtherStay of in personam aspects of the SuitsPartialKhoo Eu Shen
The "TAURUS"DefendantOtherStay of in personam aspects of the SuitsPartialKhoo Eu Shen
The "ORCUS"DefendantOtherStay of in personam aspects of the SuitsPartialKhoo Eu Shen
The "MAGNUS"DefendantOtherStay of in personam aspects of the SuitsPartialKhoo Eu Shen
The "JANUS"DefendantOtherStay of in personam aspects of the SuitsPartialKhoo Eu Shen

3. Judges

Judge NameTitleDelivered Judgment
Justin YeoAssistant RegistrarYes

4. Counsels

Counsel NameOrganization
Mary-Anne ChuaJoseph Tan Jude Benny LLP
Khoo Eu ShenRodyk & Davidson LLC

4. Facts

  1. Plaintiff issued in rem writs against the Defendants’ vessels to preserve the right to arrest the Vessels for security in an arbitration to be held in Hamburg.
  2. Defendants entered appearance gratis on 15 December 2014.
  3. Plaintiff has not filed any statement of claim in the Suits.
  4. Plaintiff commenced arbitration proceedings against the “URSUS” in Hamburg and intended to commence arbitration proceedings against the other Vessels there as well.
  5. The writs have not been served on the Vessels.

5. Formal Citations

  1. The “URSUS”, Adm No 240 of 2014 (Summons No 75 of 2015), Adm No 241 of 2014 (Summons No 79 of 2015), Adm No 242 of 2014 (Summons No 77 of 2015), Adm No 243 of 2014 (Summons No 78 of 2015), Adm No 244 of 2014 (Summons No 80 of 2015), Adm No 245 of 2014 (Summons No 83 of 2015), [2015] SGHCR 7

6. Timeline

DateEvent
Plaintiff issued in rem writs against the Defendants’ vessels
Defendants entered appearance gratis
Plaintiff filed affidavits stating it never intended to have the dispute heard in Singapore courts
Plaintiff’s Written Submissions dated
Defendants were aware that the dispute was to be dealt with at arbitration proceedings
High Court dismissed prayer 1 of the Summonses and granted prayer 2 in part

7. Legal Issues

  1. Stay of Proceedings
    • Outcome: The court granted a stay of the in personam aspects of the suits pending arbitration.
    • Category: Procedural
    • Sub-Issues:
      • Invocation of in rem jurisdiction
      • International arbitration agreement
  2. Dismissal of Action
    • Outcome: The court dismissed the prayer to dismiss the suits.
    • Category: Procedural
    • Sub-Issues:
      • Failure to serve statement of claim

8. Remedies Sought

  1. Dismissal of Suits
  2. Stay of Suits Pending Arbitration

9. Cause of Actions

  • Admiralty Action In Rem

10. Practice Areas

  • Admiralty
  • Arbitration
  • Commercial Litigation

11. Industries

  • Shipping

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
The “Engedi”High CourtYes[2010] 3 SLR 409SingaporeCited for the threshold requirements that need to be met before a court is bound to stay legal proceedings in favour of international arbitration.
The “Fierbinti”High CourtYes[1994] 3 SLR(R) 574SingaporeCited for the principle that service of an in rem writ may be effected by service on the ship, or by arresting the ship.
The “Bolbina”High CourtYes[1993] 3 SLR(R) 894SingaporeCited for the three possible scenarios which may arise in an admiralty action in rem.
The “ICL Raja Mahendra”N/AYes[1998] 2 SLR(R) 922SingaporeCited as an example of the Plaintiff’s right to arrest the Vessels as security for foreign arbitration proceedings.

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, R 5, 2006 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
International Arbitration Act (Cap 143A, 2002 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • In rem
  • In personam
  • Arbitration
  • Stay of proceedings
  • Protective measure
  • Appearance gratis
  • Statement of claim

15.2 Keywords

  • Admiralty
  • Arbitration
  • Stay of proceedings
  • In rem
  • In personam

16. Subjects

  • Admiralty
  • Arbitration

17. Areas of Law

  • Admiralty Law
  • Arbitration Law
  • Civil Procedure