The Oltet - (Q.B.D. (Adm.Ct.) (Sheen J.) - 10 November 1983

Principles for granting renewal of writ in rem in collison cases

On 20 January 1980 the plaintiff’s tug Salviscount was lying at anchor in Falmouth Bay when she was struck by the Rumanian fishing vessel Oltet . After the collision, Oltet ’s underwriters sent a letter of guarantee to the plaintiffs which included agreement that issues of liability and damage should be determined in England. However, the letter of guarantee did not contain any undertaking to accept service of a writ. The plaintiffs’ solicitors assumed that the guarantee was given on the basis that in due course solicitors would be instructed to accept service of proceedings if litigation were to become necessary. By January 1982 dispute between the parties had not been resolved and the two year period of limitation was running out. On 18 January 1982 the plaintiffs issued a writ in rem and a writ in personam . During the next few months the plaintiffs asked the underwriters’ solicitors whether they would accept service of proceedings. On 11 October 1982 the underwriters telexed that they considered the case time-barred and were not willing to engage solicitors in the case. On 1 November 1982 the plaintiffs’ solicitors made it clear to the defendants that they had protected the time limit and were instructed to proceed. On 20 December, solicitors acting for the defendants replied that they were not yet instructed to accept service of proceedings.