Daebo Shipping Co Ltd v The Ship Go Star

Daebo Shipping Co Ltd, as disponent owner, commenced proceedings against The Ship Go Star, seeking the conversion and detinue of bunkers supplied to the ship and damages for unlawful interference in contractual relations. The dispute arose out of a series of time charterparty agreements concerning the ship, including sub-charterparty agreements between Bluefield Shipping Co Ltd and Daebo Shipping Co Ltd. The dispute arose out of the failure of Bluefield Shipping Co Ltd, as charterer, to pay for bunkers supplied to the ship, and the subsequent interference by the disponent owner in Bluefield Shipping Co Ltd’s contractual relations with Nanyuan, the supplier of the bunkers.
The court was required to determine whether Daebo Shipping Co Ltd, as disponent owner, had property in the bunkers supplied to the ship and whether Nanyuan’s claim for conversion and detinue was statute-barred. The court was also required to determine whether the disponent owner had unlawfully interfered in Bluefield Shipping Co Ltd’s contractual relations with Nanyuan. In determining the latter issue, the court was required to apply the double actionability test to determine whether the tort of unlawful interference in contractual relations was recognised in the People’s Republic of China, where the bunkers were supplied.
The court held that the disponent owner did not have property in the bunkers supplied to the ship, and that Nanyuan’s claim for conversion and detinue was statute-barred. The court also held that the disponent owner had not unlawfully interfered in Bluefield Shipping Co Ltd’s contractual relations with Nanyuan, as the tort of unlawful interference in contractual relations was not recognised in the People’s Republic of China. The application was dismissed, and the plaintiff was ordered to pay the defendant’s costs.