Duty of disclosure when seeking the arrest of a ship

In brief - Case could be heard in Federal Court of Australia

In the case Atlasnavios Navegazao LDA v The Ship "Xin Tai Hai" [2012] FCA 1497 (24 December 2012), Rares J in the Federal Court of Australia had to consider whether firstly, a party seeking the issue of an arrest warrant to arrest a ship is in a similar position to a party seeking ex parte injunctive relief, ie under a duty to give full disclosure to the court, and secondly, whether the proceedings should be stayed on the basis that Australia was an inappropriate forum.

Collision causes sinking of vessel

A collision which caused the sinking of the "B Oceania" occurred in the Straits of Malacca on 29 July 2011, between the "B Oceania", owned by the plaintiff, a Portuguese company (ATLAS) and the "Xin Tai Hai", owned by China Earth Shipping Inc, a Panamanian company.

On 19 August 2011 ATLAS filed a writ in the High Court in Singapore but did not serve it (although the "Xin Tai Hai" had visited that jurisdiction in October and December 2011 and April 2012).

Cargo owner commences proceedings in Maritime Court in China

On 22 August 2011 the cargo owner brought proceedings in the Maritime Court in Qingdao, China, to preserve evidence.

On 24 August 2011 China Earth commenced proceedings to establish a limitation fund of 12,144,430 SDRS (LLMC 1976 for a vessel of 94,710 GT): US$18 million. On 26...