Incitec Ltd v Alkimos Shipping Corporation

Incitec Ltd brought an action against Alkimos Shipping Corporation for damages in respect of a shipment of ammonia that had been damaged at sea. The shipowners subsequently sought to bring cross-claims against Hyundai Merchant Marine Co Ltd, the charterers of the ship, but Incitec opposed the cross-claims. Alkimos and Hyundai then sought leave to stay any cross-claims against Hyundai. The parties appeared before the Federal Court of Australia to argue the applications to file and serve cross-claims, and to stay such cross-claims.

The court was required to determine whether the shipowners could bring cross-claims against the charterers, and if so, whether those cross-claims should be stayed. The court considered whether the shipowners had an arguable case against the charterers, and whether the charterers had a real prospect of successfully defending the cross-claims. The court also had to consider whether the shipowners could have brought the cross-claims in a separate proceeding, and if so, whether that would have been more appropriate.

The court held that the shipowners had an arguable case against the charterers, and that the charterers had a real prospect of successfully defending the cross-claims. The court found that the shipowners could have brought the cross-claims in a separate proceeding, but that this would not have been more appropriate. The court therefore granted leave for the cross-claims to be filed and served, but stayed them pending the outcome of the original proceedings. The court ordered that each party bear their own costs in relation to the motions to file and serve cross-claims, and to stay such cross-claims.