Collision—arrest—parallel proceedings in Australia and China—application for anti-suit injunction to restrain further steps in Chinese proceedings

(No 2): Collision—arrest—whether applicant for arrest warrant required to make full and frank disclosure of parallel proceedings during ex parte application—whether Australian proceedings should be stayed on forum non conveniens grounds because Australia a clearly inappropriate forum

The bulk carriers B Oceania and Xin Hai Tai collided in the Straits of Malacca on the high seas near the coast of Malaysia. B Oceania sank, fully laden with a cargo of iron ore fines. Xin Hai Tai sailed on and arrived at the port of Qingdao in the People’s Republic of China. The day after its arrival, its owner applied to the Qingdao Maritime Court to constitute a limitation fund under Ch.XI of the Maritime Code of the People’s Republic of China in respect of Xin Hai Tai’s liabilities arising out of the collision. A week later, the Qingdao Maritime Court issued a notice to the public of the shipowner’s application to limit its liability. In successive applications, the Chinese owner of the cargo of iron ore fines applied to the Qingdao Maritime Court for the arrest of Xin Hai Tai, objected to the shipowner’s application to limit its liability, and claimed damages of US$12,708,563 for loss of its cargo of iron ore fines. The Qingdao Maritime Court rejected the cargo owner’s objection to the shipowner’s right to limit and confirmed the establishment of a limitation fund in an amount equivalent to 12,144,430 SDRs, constituted by a letter of undertaking issued by a Chinese P&I Club as local correspondent on behalf of Skuld.