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Conflict of laws – victims’ right to sue P & I Club directly given by Turkish law characterized as contractual – in consequence, right governed by English law and London Arbitration clause – anti-suit injunction granted.

The Facts                               

The vessel, operating on a liner service between Turkey and North Africa, grounded on the island of Mykonos and became a total loss. The vessel was carrying containers under bills of lading governed by Turkish law. Both owners and charterers of the vessel were Turkish companies.

Charterers commenced arbitration proceedings against owners in London pursuant to the time charter.

Owners’ P & I Insurance cover provided for English Law and London arbitration. The contract contained a “pay to be paid” clause pursuant to which the Club would only be liable after owners had themselves settled claims brought against them.

Charterers also commenced proceedings directly against the Club in Turkey pursuant to Turkish legislation giving them that right. The advantage in doing so was that the “pay to be paid” clause would not be enforced in Turkey.

The Club brought an application for leave to sue outside the jurisdiction and an anti-suit injunction.


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Charter Party Casebook