The facts of the case were as follows. Universal Overseas Ltd. (Universal), the receivers of a consignment of sugar carried from Antwerp to Freetown, Sierra Leone on board the m.v. Sylt, commenced proceedings against the owners of the Sylt before the High Court of Sierra Leone and obtained a favourable judgment. Universal then arrested the Sylt twice in Rotterdam, and the owners obtained her release by providing security. Subsequently, Universal obtained a further warrant of arrest in England and the owners had to provide security once more. The owners commenced limitation proceedings in Rotterdam. The District Court of Rotterdam held that it had jurisdiction, but that limitation was governed by the law applicable to the contract of carriage, viz. in the instant case by the law of Sierra Leone, and rejected the request for limitation on the ground that Sierra Leone is not a party to any international Convention on limitation of shipowners’ liability. On appeal of the owners, the Court of Appeal of The Hague held that the owners were entitled to invoke limitation of liability. Universal then appealed to the Supreme Court.

A preliminary point considered by the Supreme Court was which international Convention was in force in the Netherlands at the material time? The court held that, although the law of 14 June 1989, whereby the 1976 Convention has been implemented and, also, the law revising the procedural rules on limitation did not apply, since they provided for their applicability only with respect to liability arising after their entry into force, the 1976 Limitation Convention was applicable, because it had entered into force and its provisions applied automatically.