Security Is Key: English Jurisdiction Clause in P&I Security Held to Be Unaffected by Singapore Limitation Proceedings

Vessel Owners and Charterers (among others) can limit liability for loss or damage to property based on the tonnage of the vessel involved in the incident. There are two international conventions that are frequently applied, the 1976 Convention on Limitation for Marine Claims (“LLMC 1976”) and the 1996 Protocol to the 1976 LLMC, which provide for significantly different limits.

Summary of the issue
In Enemalta PLC v The Standard Club Asia Limited [2021] EWHC 1215 (Comm), a P&I Club, the Standard Club Asia Pte Ltd (“the Defendant”), challenged the exclusive jurisdiction of the English Court provided for in a Letter of Undertaking (“the LOU”), and sought an order that the English Court had no jurisdiction to hear the claim or should stay the proceedings in favour of the Singapore courts. The Defendant’s Member, the vessel owners, had commenced proceedings to establish a limitation fund in Singapore.

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