“1. Shipowners and salvors, as hereinafter defined, may limit their liability in accordance with the rules of this Convention for claims set out in Article 2. … 7. The act of invoking limitation of liability shall not constitute an admission of liability.”
“Limitation of liability may be invoked notwithstanding that a limitation fund as mentioned in Article 11 has not been constituted. However, a State Party may provide in its national law that where an action is brought in its Courts to enforce a claim subject to limitation, a person liable may only invoke the right to limit liability if a limitation fund has been constituted in accordance with the provisions of this Convention or is constituted when the right to limit liability is invoked.”
“(1) The Admiralty jurisdiction of the High Court shall be as follows, that is to say – (a) …. (b) jurisdiction in relation to any of the proceedings mentioned in subsection (3) (c) …. … (3) The proceedings referred to in subsection (1)(b) are – … (c) any action by shipowners or other persons under theMerchant Shipping Act 1995 for the limitation of the amount of their liability in connection with a ship or other property.
“However, a State Party may provide in its national law that where an action is brought in its Courts to enforce a claim subject to limitation, a person liable may only invoke the right to limit liability if a limitation fund has been constituted in accordance with the provisions of this Convention or is constituted when the right to limit liability is invoked.”
“When a limitation decree is granted the court - (a) may - (ii) order the claimant to establish a limitation fund ifone has not been established or make such other arrangements for payment of claims against which liability is limited; … ”
“I see nothing there to limit the entitlement of the claimant to invoke the jurisdiction of this court to seek a decree of limitation even in circumstances where there is no claim (as yet) brought against him in this jurisdiction. To the contrary, it seems to me that the Convention expressly contemplates it. Of course it will be a rare case where a claimant invokes the jurisdiction of a state party to seek a decree of limitation in circumstances in which there is no realistic prospect of any claim being brought in that jurisdiction to justify the constitution of the fund merely to invoke thereby the sort of powers that are afforded under the English rules of court in Part 61.11 rule 13 which prescribes that ‘where a limitation decree is granted, the court may [and I emphasise “may”] amongst other things (i) order proceedings relating to any claim arising … be stayed and (ii) order the claimant to establish a limitation fund if one has not been established’.”
“The claim form may not be served out of the jurisdiction unless - (c) the Admiralty Court has jurisdiction over the claim under any applicable Convention.”
“Where there is only one claimant, the defendant may decide to rely upon Article 10(1) and invoke limitation without constituting the fund.”
“The 1976 Convention contains no express provisions regarding jurisdiction in which claims to limit liability may be made. The scheme of the Convention envisages that limitation of liability will be invoked responsively by a shipowner or other person entitled to invoke limitation, rather than in a pre-emptive manner. It envisages limitation being invoked against claims, which are made against the shipowner and thus envisage limitation being invoked in the courts of a State Party in which a claim is brought and to that extent the underlying assumption appears to be that limitation and liability will be decided in the same court. However, there is plainly no requirement for limitation claims to be brought in the same jurisdiction as liability claims and the trend in recent cases is to view limitation claims as free-standing claims subject to their own considerations of forum conveniens independent of the forum conveniens for liability claims.”
“As the Convention makes no jurisdiction provision it is arguable that a national law may place its own restrictions. Conversely it may be argued that as the Convention specifically gives one restrictive option (to require a fund) it impliedly permits the bringing of a limitation action in any court.”
“I can see no valid reason for taking an adverse view of negative declaratory relief. This is whether it is claimed in relation to transnational disputes or domestic litigation.”
“There can be nothing surprising or inappropriate about a limitation action being commenced in the same forum as a claimant’s action to establish liability; but equally there is nothing unusual about a limitation action taking place in a different forum from that in which liability is being litigated.”
“(i) Under English law a person has no right to be sued in a particular forum, domestic or foreign, unless there is some specific factor that gives him that right, but a person may show such a right if he can invoke a contractual provision conferring it on him or if he can point to clearly unconscionable conduct (or the threat of unconscionable conduct) on the part of the party sought to be restrained: Turner v Grovit[2002] 1 WLR 107 , 118C at para 25 per Lord Hobhouse. (ii) There will be such unconscionable conduct if the pursuit of foreign proceedings is vexatious or oppressive or interferes with the due process of this Court: South Carolina Insurance Co v Assurantie Maatschappij de Zeven Provincien NV[1987] AC 24 at page 41D; Glencore International AG v ExterShipping Ltd [2002] 2 All ER (Comm) 1, 14a at para 42. (iii) The fact that there are such concurrent proceedings does not in itself mean that the conduct of either action is vexatious or oppressive or an abuse of court, nor does that in itself justify the grant of an injunction: Société Nationale IndustrielleAerospatiale v Lee Kui Jak[1987] AC 817 at page 894C; Credit Suisse First Boston (Europe) Ltd v MLC (Bermuda) Ltd[1999] 1 Lloyd’s Rep 767 at 781; Airbus Industrie GIE v Patel[1999] 1 AC 119 at 133G/H. (iv) However, the court recognises the undesirable consequences that may result if concurrent actions in respect of the same subject matter proceed in two different countries: that ‘there may be conflicting judgments of the two courts concerned’ or that there ‘may be an ugly rush to get one action decided ahead of the other in order to create a situation of res judicata or issue estoppel in the latter’: see The Abidin Daver[1984] AC 398 at pages 423H–424A per Lord Brandon. (v) The Court may conclude that a party is acting vexatiously or oppressively in pursuing foreign proceedings and that he should be ordered not to pursue them if (a) the English court is the natural forum for the trial of the dispute, and (b) justice does not require that the action should be allowed to proceed in the foreign court, and more specifically, that there is no advantage to the party sought to be restrained in pursuing the foreign proceedings of which he would be deprived and of which it would be unjust to deprive him: Société Aerospatiale, ibid at 895D and 896F–G. (vi) In exercising its jurisdiction to grant an injunction, ‘regard must be had to comity and so the jurisdiction is one which must be exercised with caution’: Airbus Industrie, ibid at 133F. Generally speaking in deciding whether or not to order that a party be restrained in the pursuit of foreign proceedings the court will be reluctant to take upon itself the decision whether a foreign forum is an inappropriate one: Turner v Grovit, ibid at para 25.”
“This potentially interesting case arises from a maritime collision occurring near the Shetland Islands, off the coast of England. Defendants’ vessel is alleged to have collided with a buoy attached to a sizeable petrochemical production platform creating substantial physical damage and an alleged loss of revenues. Defendants originally filed a limitation of liability action in the Queen’s Admiralty Court, in London, England. That matter has been tried to a conclusion, and a decision rendered. That is now on appeal. The English Admiralty Court has not issued a stay with regard to concurrent litigation. However, inasmuch as this case involves alleged damages of several million dollars, and the proceedings in London are at a relatively advanced state, this Court sincerely feels that the better course would be to defer to the English courts until a final decision has been rendered on the appellate level.”
“The effect of the Convention … is not to qualify the substantive right of the claimant against the shipowner but to limit the extent to which that right can be enforced against the limitation fund.”