STELLAR OCEAN TRANSPORT LLC V OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL "RUBY STAR"

[2014] HKCA 645, HKSAR Court of Appeal, Hon Cheung and Barma JJA, 23 December 2014

Admiralty practice - Ship arrest - Jurisdiction in rem - High Court Ordinance (Cap 4), sections 12A(1), 12A(2)(l) and (o), 12B

This was an action by Stellar Ocean, the ship manager of Ruby Star against the demise charterer (Stellar Shipping Corporation Ltd, "SSC") of the same vessel, for sums due under the management agreement. SSC had admitted the claim. The ship owner, AW, was an intervener, although the manager did not pursue any claim against it but sought judgment against the vessel. The judge at first instance declined to give immediate summary judgment for Stellar Ocean, to give AW the opportunity to present arguments that SSC had chosen not to present. The judge also held that in rem jurisdiction existed where the sums in question were the remaining sums under a general account where some of the claims were in rem. This was AW's appeal of the decision on the latter issue.