Polaresource Ltd v The Ship "Orlovka"

IN THE HIGH COURT OF NEW ZEALAND
CHRISTCHURCH REGISTRY

CIV-2002-409-1

BETWEEN POLARESOURCE LTD
Plaintiff

AND THE SHIP "ORLOVKA"
First Defendant

AND THE SHIP "OSHA"
Second Defendant

AND THE SHIP "OM"
Third Defendant

CIV-2003-409-662

AND BETWEEN NORWEGIAN RUSSIAN TRADE
Plaintiff

AND THE SHIP "ORLOVKA"
First Defendant

AND THE SHIP "OSHA"
Second Defendant

AND THE SHIP "OM"
Third Defendant

Hearing: 21 May 2003

Appearances: J P Forsey for Polaresource Ltd
J G Matthews for Norwegian Russian Trade

Judgment: 21 May 2003

ORAL JUDGMENT OF HON JUSTICE JOHN HANSEN

[1] There are before the Court, in linked proceedings involving the same three Russian vessels, applications for default judgment. In AD 1/02 (CIV 2002-409-1) there is a further application to dismiss, an interlocutory application made by CF Kuzema pursuant to r773(7) of the High Court Rules to set aside a proceeding in rem filed by the Plaintiff, Polaresource Ltd.

[2] There has been a substantial background to the dealings with these ships and their ownership which has been the subject of previous decisions. Counsel for CF Kuzema have withdrawn and it has taken no further steps. It follows its application pursuant to r773(7) is dismissed.

[3] That leaves the applications for judgment pursuant to r790. Clearly that rule gives the Court the power to enter default judgment. In the case of the Polaresource Ltd application there will be judgment for the Plaintiff in the sum of NZ $512,359.91 together with interest at the judicature rate until the date of payment.

[4] There will be leave to the Plaintiff to file a memorandum setting out the costs incurred with Russian lawyers who have been involved in investigating the many twists and turns of the ownership of these vessels. Subject to my approving the amount, it would be my intention to award that in full.

[5] In relation to costs there will be costs to the Plaintiff on a 3C basis for these proceedings, which includes the interlocutory application made by CF Kuzema.

[6] In the proceedings involving Norwegian Russian Trade, CIV 2003-409-662, there will be judgment to the Plaintiff in the sum of NZ $1,957,730.20 which allows for the judicature rate of interest to today. There will be judicature rate interest until the date of payment.

[7] There will be a costs award in favour of the Norwegian solicitors in the sum of NZ $109,664. There will be costs to the New Zealand lawyers on a 3C basis.

[8] In relation to costs on both files there will also be an order that the Defendants pay disbursements as fixed by the Registrar.

[9] In the event there is any later dispute relating to priority for these costs, there will be liberty to both parties to apply on three days notice.

[10] Counsel have referred in full to r790, and in particular to (6). Accordingly there will be an order that the ships against which the action is brought are to be appraised and sold, and the proceeds paid into Court. The disbursement of that fund will be subject to further order of this Court in due course.

Solicitors: Duncan Cotterill, Christchurch for Polaresource Ltd
White Fox & Jones, Christchurch for Norwegian Russian Trade
(Counsel - J Matthews, Christchurch)