Caravelle Investments Ltd v Martaban Ltd (The ‘Cape Don’) - Federal Ct (Finklestein J) - 3 November 1999

Admiralty jurisdiction - Negotiations for sale of ship - Allegation that no contract for sale concluded - Action in restitution for recovery of deposit - Whether claim ‘relating to’ ownership of a ship

The plaintiff was negotiating with the defendant to buy the defendant’s vessel Cape Don. The plaintiff paid a ‘holding deposit’ of USD$200,000, which was paid into the defendant’s solicitors’ trust account. The defendant’s solicitors forwarded to the plaintiff a written sale form, and requested that the plaintiff sign the agreement. The solicitors also nominated a time and place for payment of the balance of the sale proceeds and the handing over of documents relating to ownership of the vessel.