Competing Jurisdictions In A Collision Claim And Forum Non Conveniens

The Reecon Wolf [2012] SGHC 22

The Reecon Wolf is an important decision as it is the first time since the English Court of Appeal decision in The Herceg Novi [1998] 2 Lloyds' Rep. 454 and Singapore's subsequent accession in 2005 to the 1976 Convention on Limitation of Maritime Claims ("the 1976 Convention") that the Singapore High Court has had to decide the issue of forum non conveniens in a dispute involving a collision between two vessels where the competing jurisdictions apply different limitation of liability regimes, namely the International Convention relating to Limitation of Liability of Owners of Sea-going Ships 1957 ("the 1957 Convention") and the 1976 Convention.

In The Herceg Novi, the competing jurisdictions were Singapore, which at the time applied the 1957 Convention, and England, which then applied the 1976 Convention. In The Reecon Wolf, the competing jurisdictions were Malaysia (which applies the 1957 Convention) and Singapore (which applies the 1976 Convention).

The background facts

On 21 August 2010, the Reecon Wolf ("RW") collided with the Captain Stefanos ("CS") whilst both vessels were transiting the Straits of Malacca en route to Singapore for bunkering and thereafter to Chinese discharge ports. The collision occurred in Malaysian territorial waters.

After the collision, the following events took place:-

On 24 August 2010, RW interests commenced an in rem action in Malaysia against CS ("the Malaysia Action") and arrested CS. On 26 August 2010, CS interests commenced an in rem action in Singapore against RW ("the Singapore Action") and arrested the RW in Singapore. The RW and CS were released from arrest on 28 August 2010 and 30 August 2010 after provision of security for the Singapore and Malaysia Actions respectively. On 8 September 2010, RW interests filed their Preliminary Act in the Malaysia Action. On 26 October 2010, CS interests filed their Preliminary Act in the Singapore Action and applied to stay the Malaysia Action. In turn, RW interests applied to stay the Singapore Action on 3 November 2010. On 18 March 2011, RW interests' application to stay the Singapore Action was dismissed. RW interests appealed against the dismissal. On 1 July 2011, CS interests' application to stay the Malaysia Action was dismissed by the Malaysian Court. On 8 July 2011, the Singapore Court reversed the first instance decision dismissing the stay application and ordered a stay of the Singapore Action. The Singapore Court's...