Laemthong International Lines Co Ltd v BPS Shipping Ltd

Laemthong International Lines Co Ltd (appellant) appealed to the High Court of Australia against a decision concerning admiralty proceedings. The respondent, BPS Shipping Ltd, had commenced proceedings in rem against the vessel *Laemthong Pride* as a surrogate for the vessel *Nyanza*. BPS Shipping Ltd, the disponent owner of *Nyanza*, alleged that the appellant, as charterer of *Nyanza* under a voyage charterparty, had breached the charterparty, causing damage.

The High Court was required to determine two principal legal issues. Firstly, whether the appellant was a "charterer" of *Nyanza* for the purposes of section 19 of the *Admiralty Act 1988* (Cth). Secondly, whether the definition of a "surrogate ship" contained in section 3(6) of the *Admiralty Act 1988* (Cth) controlled the operation of section 19 of the same Act.

The Court reasoned that the appellant, by entering into a voyage charterparty for the use of *Nyanza*, fell within the definition of "charterer" as contemplated by section 19 of the *Admiralty Act 1988* (Cth). Furthermore, the Court held that the definition of "surrogate ship" in section 3(6) did not limit or control the operation of section 19. Section 19, in the Court's view, permitted proceedings in rem against a ship other than the one in respect of which the cause of action arose, provided the conditions of the section were met, which included the relationship of charterer.

The appeal was dismissed with costs.