Universe Tankships Inc. of Monrovia v. International Transport Workers’ Federation and Others - Lord Justices Megaw, Brightman and Watkins - Court of Appeal - July 10, 1980

Whether ITF demands valid - Court of Appeal over-turn decision of Mr. Justice Parker

The appellants, ITF, had prevented the respondent owners’ ship from leaving port until the owners complied with their demands which included payment of U.S. $8,000, part of which was allocated to the union’s welfare fund. The owners complied and the vessel was released. The owners contended that they were entitled to repayment of the sum paid to the welfare fund. Mr. Justice Parker, on Apr. 2, 1980 (see LMLN Issue No. 12), ordering repayment of the sum, held that the money had been paid under duress and that it made no difference that the demand had been made with demands which fell within s.29(1) Trade Union and Labour Relations Act 1974. The money was subject to a void trust and consequently came back to the shipowners on a resulting trust.