ELLERMAN LINES v. LANDI AND OTHERS. (THE "FALERNIAN.")

(1927) 29 Ll L Rep 15

KING'S BENCH DIVISION.

Before Mr. Justice MacKinnon.

Salvage-Agreement-Lloyd's form-Term of agreement that amount for services should be settled by arbitration in London and that salvor (defendant) should not arrest the ship unless proper security unprovided-Requisite guarantee obtained and approved by defendant -Seizure of ship under process of foreign Court-Judgment in favour of defendant obtained by fraud-Breach of contract -Doctrine of res judicata- Whether applicable - Measure of damages-Plaintiffs held entitled to recover (1) Hire of tug to tow vessel from area of operations; (2) Wages of master and crew of vessel from date of arrest; (3) Legal expenses in resisting arrest-Claim for value of vessel disallowed as it was not a necessary consequence of the breach-Whether plaintiffs entitled to declaration that, in the event of defendant bringing an action on the foreign judgment, that judgment having been obtained by fraud, they have a good defence-R.S.C. Order 25, r. 5-Counterclaim dismissed -"The Court will not allow a party to take advantage of his own wrong"-No jurisdiction to grant world-wide injunction to restrain defendant from enforcing foreign judgment -Liability of co-partners.