Morgan v Union Shipping (NZ) Ltd

In the case of Morgan v Union Shipping (NZ) Ltd, the plaintiff sought to recover damages for injuries sustained on a foreign flagged vessel in the territorial waters of New South Wales. The dispute centred on the determination of which jurisdiction's laws should apply to the case: the flag State's laws or the laws of New South Wales. The matter was heard in the Supreme Court of New South Wales. The plaintiff argued that New South Wales law should apply, while the defendant contended that the law of the flag, New Zealand, should govern.

The legal issues before the court included the appropriate test to determine whether a forum is "inappropriate" in a choice of law context and the applicability of the law of New South Wales to the facts of the case. The court had to consider the principles of private international law, including the relevance of the flag State's laws and the territorial application of New South Wales law. Additionally, the court needed to determine whether the forum was "clearly inappropriate" or merely "inappropriate" for the application of New South Wales law.

The court held that the proper test to determine the appropriateness of a forum in a choice of law context is whether the forum is "clearly inappropriate" rather than merely "inappropriate." It was found that the New Zealand flag State law did not sufficiently connect to the events in question to warrant its application. Furthermore, the court concluded that the law of New South Wales was appropriate, as the injury occurred within its territorial waters. The court's decision was influenced by the significant connection between the events and the jurisdiction, which aligned with the principles of private international law.

The court ordered that the law of New South Wales would apply to the dispute, and the case would proceed under that jurisdiction. The decision underscored the importance of applying the correct legal test in determining forum appropriateness and highlighted the relevance of territorial jurisdiction in choice of law matters.