Owners of the MFV “George Lurich” v Centro Latino Americano De Comercio Exterior SA - Cape Provincial Division (Berman J) - 1994 (1) SA 857

Jurisdiction in rem - Whether defendants entitled to release of arrested vessel by substituting another vessel in its place

The vessel George Lurich was arrested by the plaintiffs. As the defendant owners of the vessel required the vessel in order to take the place of another vessel which had to be repaired in Cape Town, they tendered in terms of section 3(10) of the Admiralty Jurisdiction Regulation Act 105 of 1983 and Rule 3(5)(a) of the Admiralty Proceedings Rules security for the plaintiffs’ claim, not in money, but in the form of another vessel, namely the vessel which had to be repaired in Cape Town. The plaintiffs refused their consent to that substitution, averring inter alia that practical and legal uncertainties could follow such a substitution. The plaintiffs also argued that they were entitled to refuse the defendants’ tender for any reason, however capricious such a reason might be. Alternatively, if such refusal had to be reasonable, then the plaintiffs had good and sufficient reason in the present case to reject the tender. The defendant applied to the court for an order releasing the arrested vessel and substituting the other vessel.