NCNB Texas National Bank v. The Evensong Co. Ltd. (The Mikado) - Q.B.D. (Adm.Ct.) (Sheen J.) - 15 May 1991

Whether creditor bank entitled to serve restraining order under section 30 of the Merchant Shipping Act 1894 where vessel outside jurisdiction

In 1984 the plaintiff bank lent $25 million to Mr. John Burton Rogers for investment in real estate. A slump in the real estate market left Mr. Rogers in financial difficulties. In 1986 Mr. Rogers sought to restructure the loan. He repaid part of the loan by borrowing from another bank. Meanwhile, on 14 June 1985, Mr. Rogers had entered into a contract for the construction by Japanese builders of a large yacht to be named Mikado . In August 1986 Mr. Rogers transferred to his wife the majority of his assets without consideration. Those assets included the rights under the building contract for the Mikado . Mrs. Rogers immediately conveyed the transferred property to two revocable trusts. Mrs. Rogers was the sole trustee of the trusts. Mr. Rogers acted as manager of the trusts through his position as president and chief executive of Rogers Investment Corporation, which managed the trusts.