Lady Navigation Inc v Lauritzencool Ab and Another: CA 17 May 2005

The shipowner appealed the award against them of an injunction requiring them not to act inconsistently with a time charterparty. The company said that such a form of order was improper.
Held: The existence of the contract to do what was required did not prevent an injunction being granted to achieve the same result. Scaptrade was authority for the proposition that specific performance would not be ordered in respect of a time charterparty. However the relief appealed against was jurisdictionally different. Though a time charterparty was seen as a contract for services, there was no principle to exclude negative injunctive relief to prevent activity inconsistent with the terms: ‘neither the fact that the contracts involved were for services in the form of a time charter nor the existence under such contracts of a fiduciary relationship of mutual trust and confidence represents in law any necessary or general objection in principle to the grant of injunctive relief precluding the appellants from employing their vessels outside the pool pending the outcome of the current arbitration. Nor does it afford any such objection to the grant of such relief that the only realistic commercial course which it left to the appellants was, as I am prepared to assume, to do what they have done, namely to continue to provide the vessels to the pool and to perform the charters. In my judgment, therefore, the present appeal by each appellant should be dismissed. ‘


Judge, Manse, Thomas LJJ


[2005] EWCA Civ 579, Times 26-May-2005




England and Wales


CitedDe Mattos v Gibson 1859
The purchaser of an interest in property may not use it so as to breach contractual rights of which he was aware when he acquired the interest. . .
Appeal fromLauritzencool Ab v Lady Navigation Inc ComC 12-Nov-2004
The court awarded interim injunctive relief to the effect that the shipowners should not act inconsistently with a time charterparty of two vessels. . .
CitedLumley v Wagner 1852
A girl (under age) and her father contracted for her to perform at a theatre abroad, and later not to use her talents without the consent of her manager. She contracted with a competing theatre. She resisted an action by the manager saying that the . .
CitedScandinavian Trading Tanker Co AB v Flota Petrolera Ecuatoriana (The Scaptrade) HL 1983
The House considered giving relief from forfeiture where an owner had justifiably withdrawn his vessel in accordance with the terms of the charter.
Held: A withdrawal clause under a time charter, exercised on the ground of the charterer’s . .
CitedLord Strathcona Steamship Co Ltd v Dominion Coal Co Ltd HL 1926
. .
CitedWhitwood Chemical Co v Hardman 1891
The court looked to an appointment for a 10 year term as a manufacturing chemist as manager of the plaintiff company’s works.
Held: If negative injunctive relief was granted ‘the man must either be idle, or specifically perform the agreement . .
CitedIn re Regent Hotels (UK) Ltd v Pageguide Ltd CA 10-May-1985
The court was concerned with a long-term management contract for the Dorchester Hotel between Regent as managers and Pageguide. When Regent sold the hotel to Pageguide the management contract would continue and be novated (with some amendment) as . .
CitedWarren v Mendy CA 1989
A boxing manager and promoter sought injunctive relief to restrain the defendant from interfering with a management contract between himself and B, a talented young boxer, and from acting for B in B’s professional career. B was at his request joined . .
CitedPage One Records Ltd v Britton 1967
The court was asked to consider a five year contract to manage a pop group, in respect of which contract the manager claimed injunctive relief to prevent the group working outside the agreement.
Held: The injunction was refused. The manager . .
CitedAssociated Portland Cement Manufacturers Ltd v Teigland Shipping A/S (The Oakworth) 1975
. .
MentionedEmpresa Cubana de Fletes v Lagonisi Shipping Co Ltd (The Georgios C) 1971
. .
Lists of cited by and citing cases may be incomplete.

Transport, Arbitration

Updated: 30 June 2022; Ref: scu.224922