Judgment 7 November 2006 10.00 of Dame Elizabeth Gloster
Commercial Court
Court 5 St Dunstans House, London EC4

In her 1 1/2 hour oral judgment Mrs Justice Gloster essentially held:

Where cargo interests have legitimately arrested a vessel pursuant to the 1968 Brussels Convention, and the local court has ordered that a bank guarantee be provided by owners in order obtain release of the vessel, cargo interests may nevertheless be ordered by the court in England to accept an International Group Club letter securing a London arbitration only.

Such an order, an anti-suit injunction, will be made against cargo interests and/or those representing them, if the court in England considers that cargo are attempting to use the local court order to justify insisting on a locally issued bank guarantee which “in reality” would involve local law and jurisdiction not only for the guarantee but also for the underlying dispute and thereby oust the London arbitration applicable to disputes under the relevant bill of lading or charter party.

Such conduct by cargo interests was a breach of owner’s contractual right not to be sued anywhere other than in London arbitration and alternatively was vexatious or oppressive in breach of owner’s equitable rights.

After the very full investigation of the facts which had taken place at the hearing before her, as opposed to the facts available when the original injunction was given three months earlier, the judge considered that an anti-suit injunction was justified.

The permission given at the time of the original anti-suit injunction to Owners to pursue a claim in the High Court in London for damages against cargo interests and against the cargo underwriters (AXA Senegal) was correctly given and was maintained.