P claimed to have suffered a loss of €141,000 as result of R’s not honouring the first voyage and total losses of €3.4m. The dispute was referred to arbitration in Dublin and a warrant of arrest against the Star Viking was issued in December 2014. R now sought a release from the arrest.

R contended that it was not the beneficial owner of the Star Viking as there had been a transfer of ownership from R to Z on 1 August 2014.

Decision: Application granted.

Held: (1) The Administration of Justice Act 1956, s.3(4) provided that jurisdiction in rem may be invoked if the person liable in personam was, when the cause of action arose, the owner or charterer of, or in possession or control of, the ship. (2) The court was entitled to look behind the formal registration of the vessel to determine where the beneficial ownership of the vessel lay. (3) On a balance of probabilities, it was clear that R remained the beneficial owner or the charterer or had control of the vessel, despite the machinations of various other companies. (4) The solicitors for R had sought to offer reassurance by stating that R was the “disponent owner”. (5) At the very least, it was being stated that the transfer to Z was subject to a charter back to R to complete the contract of affreightment and R was the charterer or in possession or control of the vessel. (6) When a court makes an order staying proceedings, it may attach such conditions to the release as it thinks fit, in particular conditions with respect to the institution or prosecution of the relevant legal proceedings, which in this case was the arbitration proceedings. (7) The usual situation would be that security should be provided for the claim. (8) The court would order the release of the vessel subject to R providing security for damages, interest and costs to a figure of €300,000.