MOTOR YACHT SALES AUSTRALIA PTY LTD V MEGISTI YACHT CHARTERS LTD (THE “HUNTER”)

[2019] FCA 1454, Federal Court of Australia, Stewart J, 4 September 2019

Admiralty – Caveat in shipping register – Respondents summoned under section 47B to show cause why the caveat should not be removed – Onus on the caveator to justify the caveat – No serious question to be tried – Balance of convenience favouring removal of the caveat – Shipping Registration Act 1981 (Cth), sections 47A and 47B

The luxury motor yacht Hunter was registered in the Australian General Shipping Register to the applicant as owner. On 9 August 2019, its previous registered owners (respondents in the action) had lodged a caveat which was entered in the register three days later. The caveat forbade the entry in the register of any instrument relating to any dealing with Hunter until after notice of the intended dealing to the respondents as caveators. The interest claimed by the respondents in the caveat was described as “beneficial owners”. Also on 9 August, the applicant had entered into a sale contract for the yacht. The respondents’ justification of the caveat was that either the applicant held Hunter in trust for the respondents; or they retained a proprietary claim in the vessel.