MAGELLAN SPIRIT APS V VITOL SA (THE "MAGELLAN SPIRIT")

[2016] EWHC 454 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Leggatt, 4 March 2016

Jurisdiction - Anti-suit injunction - Whether applicant was party to an exclusive jurisdiction agreement - Undisclosed principal - Ratification - Delay - Lugano Convention, article 23

VSA, a Swiss company, agreed to supply liquefied natural gas (LNG) to the Korea Midland Power Co (KOMPO). Delivery was ex-ship, South Korea. Mansel, a subsidiary of VSA, chartered the vessel Magellan Spirit from MS under a three-year time charter dated 1 July 2012 to carry the LNG. The charter was expressly governed by English law and provided for disputes arising under it to be referred to the jurisdiction of the High Court in London. A delay occurred in January 2015 when the vessel became grounded on a mud bank off Nigeria after having loaded a cargo of LNG. There was a delay of some 23 days, and VSA asserted that the cargo could no longer be sold to KOMPO and had to be resold at a loss. Subsequently VSA terminated the charter asserting a contractual right of termination based on the length of the time the vessel had been off-hire. On 28 May VSA obtained an order from a Portuguese court arresting the vessel as security for the claim. VSA then issued proceedings against MS in Nigeria. MS issued proceedings in England in July 2015 and applied for an anti-suit injunction in December 2015.