Containerships Denizcilik Nakliyat Ve Ticaret A.S. (Appellant) v Shipowners' Mutual Protection and Indemnity Association (Luxembourg) (Respondent)
Case ID: UKSC 2016/0103
Case summary
Issue(s)
Whether it was appropriate to grant a final anti-suit injunction restraining certain proceedings before the Turkish Courts.
Facts
On 8 March 2014 the vessel Yusuf Cepnioglu grounded off the Greek island of Mykonos. The vessel was carrying 207 containers pursuant to 74 bills of lading issued by the Appellant, the time charterer of the vessel. The vessel was a total loss. The law and jurisdiction of the bills is Turkish. Cargo claims have been notified to both the Appellant and Furkan Cilik Sanayi Ticaret Ltd, the owner of the vessel. The Appellant and the owner are both Turkish companies.
The owner of the vessel was a member of the Respondent protection and indemnity club ("the Club") and had liability insurance against third party claims pursuant to the terms of its Club cover. The terms provided for English law and London arbitration, for the Club only to be liable if the owner has paid the claims against it and that an arbitration award is a condition precedent to the Club’s liability.
In May 2014 the Appellant commenced ‘precautionary’ proceedings in Turkey seeking to attach Club assets in Turkey as security for a claim pursuant to a Turkish statute which gives the Appellant a direct right of action against the Club. It is these proceedings, and the intended 'substantive' proceedings which are the subject of the anti-suit injunction obtained by the Respondent.
The High Court characterised the Appellant’s rights under the Turkish statute as contractual and held it had jurisdiction to issue an injunction restraining the Appellant in Turkey. In the course of doing so, the High Court applied the ‘vexatious and oppressive’ test. The Court of Appeal also characterised the right as contractual. It, however, held that an injunction should be granted on the contractual basis, unless there was a good reason not to do so. On this basis it held that the injunction should be maintained. The Appellant asks the Supreme Court to set aside the orders of the High Court and Court of Appeal.
Judgment appealed
Parties
Appellant(s)
Containerships Denizcilik Nakliyat Ve Ticaret A.S.
Respondent(s)
Shipowners' Mutual Protection and Indemnity Association (Luxembourg)
Appeal
Justices
Lord Mance, Lord Sumption, Lord Reed, Lord Hodge, Lord Briggs
Hearing start date
17 Oct 2017
Hearing finish date
18 Oct 2017