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casetreasury

Atlasnavios Navegacao, LDA v The Ship "Xin Tai Hai" (No 2) [2012] FCA 1497

Facts: There was a maritime accident in the Straits of Malacca (Malaysia), involving a Chinese/Panamanian ship that was arrested in WA. AU proceedings commenced followed by Chinese proceedings. The claimants in FCA were not subject to limitations of liability under Chinese law.


Held: FCA proceedings not stayed this time, subject to conditions. FCA was not “clearly inappropriate forum”. Atlas had invoked Court’s jurisdiction first and had sought legitimate advantage of higher limits for liability. Determining “clearly inappropriate forum” requires balancing factors including:

  • Which forum can provide more effectively for complete resolution of matters involved in parties’ controversy

  • Order proceedings were instituted

  • Stage each proceeding had reached and costs incurred

  • Connection (if any) of parties and controversy to each jurisdiction and issues on which relief might depend

  • Resources of parties, relevance of parties & witnesses’ understandings of language in each jurisdiction

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