AS FORTUNA OPCO BV AND ANOTHER V SEA CONSORTIUM PTE LTD AND OTHERS

[2020] SGHC 72, Singapore High Court, Pang Khang Chau J, 14 April 2020

Admiralty – Limitation of liability – Tonnage limitation – Limitation fund constituted by letter of undertaking – Interest rate in respect of the period after the constitution of the limitation fund – Allocation of costs – Merchant Shipping Act (Cap 179, 1996 Rev Ed), section 136 – Convention on Limitation of Liability for Maritime Claims, 1976

The plaintiffs sought to limit their liability and constitute a limitation fund in respect of claims arising from the running aground of the vessel AS Fortuna at or around Guayaquil, Ecuador on or around 13 September 2018. The first plaintiff was the registered owner and the second plaintiff was a limited partnership organised under the laws of the Netherlands, of which the first plaintiff was the general partner. The defendants were potential claimants against the plaintiffs or the vessel in respect of the incident. The defendants did not contest the plaintiffs’ entitlement to limit liability and constitute a limitation fund and did not oppose the plaintiffs’ application to have the limitation fund constituted by way of a letter of undertaking (LOU) from a Protection and Indemnity Club. Disputes arose concerning: (a) the applicable interest rate to be provided for in the LOU in respect of the period after the constitution of the limitation fund; and (b) the appropriate costs order to be made.