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Lloyd's Maritime and Commercial Law Quarterly

BRING ALL YOUR CLAIMS IN ONE COURT, OR LOSE THEM…

The Indian Grace

A short but important point upon the effect on English proceedings of a prior foreign judgment arose before the House of Lords in The Indian Grace.1 The Indian Grace was carrying munitions from Sweden to India when a fire broke out in her hold. She put into Cherbourg, where a small number of shells (51) were jettisoned; she then proceeded to Cochin. On inspection on arrival at Cochin it appeared that the cargo as a whole was a loss by reason of crushing and heat damage. That a claim for the value of the cargo (£2.6 million) would be made was notified to the shipowners by letter.
Whereupon things took a very odd turn. For some unexplained reason, proceedings were brought against the shipowners in Cochin, claiming damages only in respect of the 51 shells jettisoned at Cherbourg. A year later, but before judgment in Cochin, the Indian Endurance was served at Middlesbrough with a writ in rem, claiming damages of £2.6 million. But, when the court at Cochin gave judgment for the cargo owner, the shipowner sought to defend the English proceedings on the basis that the judgment at Cochin operated, by estoppel or otherwise, to bar all and any further proceedings arising out of the same contract and the same fire. The lower courts2 felt obliged to treat the Civil Jurisdiction and Judgments Act 1982, s. 34 as having precisely this effect, and struck out the plaintiffs’ claim. The House of Lords declined to take so summary a view of the matter, reversed the Court of Appeal, and allowed the plaintiffs to proceed to make their claim.
The shipowners’ main argument was that s. 34 absolutely barred the later-commenced English proceedings. It states that: “No proceedings may be brought by a person in England … on a cause of action in respect of which a judgment has been given in his favour in proceedings between the same parties, or their privies, in a court … of an overseas country unless that judgment is not enforceable or entitled to recognition …” As the judgment in Cochin was entitled to recognition, the shipowners having submitted to the court which gave it, it was argued that s. 34 deprived the English court of jurisdiction to hear the cargo owners’ claim. The intellectual foundation for this reading of the section was that (i) when an English court gives judgment, the judgment merges with the cause of action, which is

1. [1993] 1 Lloyd’s Rep. 387; also reported sub nom. Republic of India v. India Steamship Co. Ltd. (The Indian Endurance) [1993] A.C. 410,
2. The judgment of the Court of Appeal is at [1992] 1 Lloyd’s Rep. 124. It provoked a stinging rebuke from Lawrence Collins in (1992) 108 L.Q.R. 393, which was duly acknowledged by Lord Goff.

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