Gold Shipping Navigation Co SA v Lulu Maritime Ltd (The “Pearl of Jebel Ali” and “Pride of Al Salam 95”) – QBD (Admlty Ct) (Teare J) – 18 June 2009

Collision action – Vessels colliding in Suez Canal – Whether counterclaim subject to two year limitation period – Whether court should extend time for making counterclaim

On 17 October 2005 the vessels Pearl of Jebel Ali ( “Jebel Ali”) and Pride of Al Salam 95 ( “Al Salam”) collided in the Suez Canal, as a result of which Al Salam sank. The collision gave rise to a claim by the owners of Al Salam of some US$10,600,000, and to a claim by the owners of Jebel Ali of some US$1,500,000. By a Collision Jurisdiction Agreement dated 1 November 2005 the owners of the two vessels agreed English law and jurisdiction. Pursuant to section 190 of the Merchant Shipping Act 1995 (the successor to section 8 of the Maritime Conventions Act 1911) there was a two year time limit for commencing proceedings.