The "Ambassador": Prioritizing Claims Against Vessel Proceeds in Admiralty Dispute
In the Singapore High Court, the plaintiffs, comprising the master, officers, and crew of the vessel “Ambassador,” initiated an admiralty action for unpaid wages. After the vessel was sold, Drydocks World – Dubai LLC (“DDW”), a mortgagee, applied for determination of claim priorities. The court affirmed DDW's priority claim to the balance sale proceeds, rejecting a request for further arguments from Shipoil Ltd and Island Oil Ltd, who sought to compel DDW to first pursue other avenues of recovery. The court held that DDW was entitled to elect its preferred method of enforcement, subject to avoiding double recovery.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Request for further arguments rejected; decision in SUM 3316 affirmed.
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court addresses claim priorities against the vessel “Ambassador” following its sale, focusing on a mortgagee's right to elect enforcement.
1.7 Decision Date
2. Parties and Outcomes
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chua Lee Ming | Judge of the High Court | Yes |
4. Counsels
4. Facts
- Plaintiffs, the vessel's crew, initiated action for unpaid wages.
- Defendant, the vessel owner, defaulted in appearance.
- The vessel “Ambassador” was sold, and proceeds paid into court.
- DDW held a second priority mortgage over the vessel.
- Evergreen held a first priority mortgage over the vessel.
- DDW also held an assignment of a judgment debt owed by Evergreen to the defendant.
- Shipoil and Island Oil supplied bunkers to the vessel.
5. Formal Citations
6. Timeline
| Date | Event |
|---|---|
| Collision between the Vessel and another vessel owned by Evergreen | |
| Gard AS issued a letter of undertaking on behalf of Evergreen to the defendant | |
| Defendant granted Evergreen a first priority mortgage over the Vessel | |
| Defendant granted DDW a second priority mortgage | |
| Defendant assigned to DDW the benefit of the Gard LOU | |
| Plaintiffs arrested the Vessel | |
| Plaintiffs entered judgment in default of appearance against the defendant | |
| DDW commenced action against the defendant in HC/ADM 51/2017 | |
| Vessel and bunkers were sold | |
| Sale Proceeds were paid into court | |
| Newton Shipping Ltd withdrew its claim | |
| Payments were ordered to be made from the Sale Proceeds to various parties including the plaintiffs | |
| Payments were ordered to be made from the Sale Proceeds to various parties including the plaintiffs | |
| Defendant obtained judgment against Evergreen in England | |
| DDW filed SUM 3316 | |
| Balance amount including interest was S$8,600,459.01 | |
| Court heard SUM 3316 and decided that DDW’s claim had priority | |
| Consent order was entered staying the interpleader proceedings in England | |
| Shipoil and Island Oil requested further arguments | |
| Shipoil and Island Oil filed a notice of appeal | |
| Judgment issued |
7. Legal Issues
- Priorities of Claims
- Outcome: The court held that DDW's mortgage claim had priority over the claims of Shipoil and Island Oil.
- Category: Substantive
- Sub-Issues:
- Ranking of mortgage claims
- Enforcement of maritime liens
- Distribution of proceeds from vessel sale
- Related Cases:
- [1977] 2 Lloyd’s Rep 243
- Right to Elect Enforcement
- Outcome: The court held that DDW was entitled to elect to enforce its remedies as far as applicable, subject to there being no double recovery.
- Category: Substantive
- Sub-Issues:
- Whether a mortgagee can choose which security to enforce first
- Whether a creditor can compel a mortgagee to enforce other securities first
- Related Cases:
- [1977] 2 Lloyd’s Rep 243
8. Remedies Sought
- Payment of unpaid wages
- Determination of claim priorities
- Payment out of sale proceeds
9. Cause of Actions
- Claim for unpaid wages
- Mortgage claim
10. Practice Areas
- Admiralty
- Shipping
- Mortgages
- Commercial Litigation
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The “Myrto” | N/A | Yes | [1977] 2 Lloyd’s Rep 243 | N/A | Cited for the principle that a party is entitled to elect to enforce its remedies as far as applicable, subject to there being no double recovery. |
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
- Vessel
- Mortgage
- Sale Proceeds
- Priority of Claims
- Balance Sale Proceeds
- Nautical Judgment Debt
- Gard LOU
- ADM 51 Judgment
- Deferred Payment Agreement
15.2 Keywords
- Admiralty
- Shipping
- Mortgage
- Priority of Claims
- Vessel
- Ambassador
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Admiralty and Maritime Law | 95 |
| Shipping Law | 90 |
| Payment out of proceeds of sale | 80 |
| Priorities of Claims | 70 |
| Civil Practice | 60 |
| Judgments and Orders | 50 |
| Contract Law | 30 |
16. Subjects
- Admiralty
- Shipping
- Mortgages
- Civil Procedure