NAVIG8 PTE LTD V AL-RIYADH CO FOR VEGETABLE OIL INDUSTRY

[2013] EWHC 328 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Andrew Smith, 22 February 2013

Jurisdiction - Challenge - Claim in respect of bills of lading where claimant not a party to bill of lading contracts under English law but a party under Jordanian law - Injunctive relief - Service out of negative declarations - Hamburg Rules, 1978 - Contracts (Rights of Third Parties) Act 1999

The claimant, Navig8, was the time charterer of the ship Lucky Lady and the defendant, Al-Riyadh, was the consignee of a shipment of palm oil, which had been rejected due to delivery in poor condition. The seller of the palm oil, PIL, was also the sub-charterer of Lucky Lady on amended Shelltime 4 terms. The cargo was carried under five bills of lading incorporating the terms of the sub-charterparty between Navig8 and PIL. On or about 2 February 2012, Al-Riyadh issued proceedings for damages before a court in Jordan against the sellers and against Navig8 as carriers under the bills of lading. The basis of the contention that Navig8 are carriers was that the bills did not refer to the owners, but provided that: "This shipment is carried under and pursuant to the terms of the Charter dated 07th MARCH 2008 AT KUALA KUMPAR Between [Navig8] SINGPAPORE as Owners and [PIL] as Charterers ... The contract of carriage evidenced by this Bill of Lading is between the shipper, consignee and/or owner of the cargo and the owner or demise charterer of the Vessel named herein ...". Al-Riyadh argued that the Jordanian court was likely to interpret the bills as evidencing contracts with Navig8 as carriers, and that the fact that the shipment was to a Jordanian port would found Jordanian jurisdiction as a matter of Jordanian private international law. Al-Riyadh also arrested the vessel and obtained security for claims against the shipowners but did not bring proceedings against them. On 9 May 2012 Hamblen J gave Navig8 permission for service out of the jurisdiction and refused an application for an anti-suit injunction and on the following day the present proceedings were commenced. On 14 May Navig8 submitted a full defence including a challenge to the jurisdiction to the Jordanian court. On 27 July Al-Riyadh in turn challenged the jurisdiction of the High Court. This was Al-Riyadh's application to challenge the jurisdiction of the court over these proceedings brought by the claimant. Navig8 served them in Jordan, having been permitted to do so by Hamblen J on 9 May 2012. Al-Riyadh contend that the court does not have jurisdiction to hear Navig8's claims and should not exercise it even if it has.