Gulf Azov Shipping Co Ltd and Ors v Idisi and Ors (The “Dubai Valour”) - Court of Appeal (Brooke and Longmore LJJ, and Buckley J) - 9 March 2001

Arrest of vessel to found cargo loss claim for $17 million - Vessel and crew detained in Nigeria because cargo owner would not agree reasonable offer of security by P&I Club - Cargo owner eventually agreeing to accept $3 million payment from Club to permit vessel to leave Nigeria - Whether vessel wrongfully detained - Whether payment of $3 million paid under duress

On 14 June 1997 a cargo of drilling rigs was loaded on board the vessel Dubai Valour at Kandla, India under a bill of lading which provided for carriage to Sapele in Nigeria. On arrival, part of the cargo, which had been loaded on deck, was missing. The shipowners said that it had been lost overboard during a storm and that they were not responsible for the loss. That explanation did not satisfy the company which owned the cargo (Lonestar Shipping Co Ltd) which, on 5 August 1997, began proceedings in Nigeria claiming damages for US$17 million and, on 6 August 1997, arrested the vessel. The Nigerian court ordered the arrest of the vessel and her detention by the Admiralty Marshal pending the provision of a satisfactory bank guarantee to secure Lonestar’s claim.