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Lloyd's Maritime and Commercial Law Quarterly

ARREST OF ASSOCIATED SHIP NOT RETROSPECTIVE IN OPERATION

Euromarine International of Mauren v. The Ship Berg and Others

1. The background

In an earlier article1 the writer discussed generally the novel and far-reaching provisions of s. 3(6)(7) of the South African Admiralty Jurisdiction Regulation Act 105 of 1983 (“the Act”). The subsections in essence provide that an action in rem may be brought by the arrest of an “associated ship” instead of the wrongdoing ship in respect of which the maritime claim arose.2 It was submitted in the earlier article that various difficulties attend both the construction and implementation of the subsections. One such difficulty was whether the provisions are retrospective in operation so that an associated ship instead of the ship in respect of which the maritime claim arose may be arrested notwithstanding that such a claim arose before the date of commencement of the Act. And, as was mentioned in the earlier article, conflicting judgments had been delivered by the Admiralty Court on this matter. In The Kyoju Maru 3 Leon, J., held that, although s. 3(6)(7) created a new right, it was fallacious to treat this right as if it were a new cause of action. He said that these provisions merely provide a remedy whereby an existing claim may be enforced. They are thus procedural in nature and hence retrospective in operation. But a contrary decision was reached in The Berg 4 by Milne, J.P., who delivered the majority judgment. He held that, first, s. 3(6) created a new right and not merely a new remedy. It imposed an obligation upon persons who had no obligation before the commencement of the Act. Thus the provision referred to a matter of substantive rights and hence was not retrospective in operation. Secondly, said the Judge President, if s. 3(6) were to be applied retrospectively, it would interfere with vested rights with a vengeance.5

1 “The Implementation of the Admiralty Jurisdiction Regulation Act in South Africa” [1985] 4 LMCLQ 462.
2 Section 3(6)(7) provides: “(6) Subject to the provisions of subsection (9) an action in rem, other than such an action in respect of a maritime claim contemplated in paragraph (a), (6) or (c) of the definition of ‘maritime claim’, may be brought by the arrest of an associated ship instead of the ship in respect of which the maritime claim arose. (7) (a) For the purposes of subsection (6) an associated ship means a ship, other than the ship in respect of which the maritime claim arose (i) owned by the person who was the owner of the ship concerned at the time when the maritime claim arose; or (ii) owned by a company in which the shares, when the maritime claim arose, were controlled or owned by a person who then controlled or owned the shares in the company which owned the ship concerned. (b) For the purposes of paragraph (a)-(i) ships shall be deemed to be owned by the same persons if all the shares in the ships are owned by the same persons; (ii) a person shall be deemed to control a company if he has power, directly or indirectly, to control the company (c) If a charterer or subcharterer of a ship by demise, and not the owner thereof, is alleged to be liable in respect of a maritime claim, the charterer or subcharterer, as the case may be, shall for the purposes of subsection (6) and this subsection be deemed to be the owner”.
3 1984(4) SA 210(D).
4 1984(4) SA 647(N).
5 Ibid., at p. 662.

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