Office: +44 203 968 0500
24/7 Emergency Response: +44 7887 710 950
Select Page

Collision Jurisdiction Agreements

Collision Jurisdiction Agreements | BDM Blog | BDM Law

A recent decision in the Admiralty Court is of interest because it addresses the effect of paragraph C of the standard ASG2 Collision Jurisdiction Agreement (CJA), a copy of which can be found here.

In short, paragraph C provides that parties signing a CJA under which they agree to refer all disputes to the English High Court should each provide security in respect of the other’s claim in a form reasonably satisfactory to the other.

Those interested in the facts can read the case report here, but the key point to note is that Teare J held that, although the test of what was reasonably satisfactory in terms of the security offered is an objective one and was in fact satisfied in this case, on a proper construction of paragraph C a party is not obliged to accept the security offered and could proceed to obtain security by way of arrest if it chose to do so.

This decision is of considerable interest because it begs the question of the point of paragraph C in the CJA. It remains to be seen whether there will be an appeal, but for now parties should proceed on the understanding that signing up to a CJA on the ASG2 form of wording does not remove the risk of arrest. Indeed, the only way to do that it seems is to provide security in an acceptable form that itself contains an undertaking not to arrest. In that sense, see the ASG1 form which is designed to do just that.

Nick Burgess - author profile
Nick Burgess
Partner
Constantin von Hirsch - author profile
Constantin von Hirsch
Trainee
BDM is a specialist shipping law firm offering high quality legal advice and representation at a reasonable price. Please follow us on social media by clicking below.

Other Recent Blogs

  • Happy Chinese New Year from BDM | BDM Blog | BDM Law
    January 17, 2023

    Happy Chinese New Year from BDM

    Happy Chinese New Year of the Rabbit to all our clients, colleagues and friends.[...]

    Read more >
  • Deviation – bad weather following deviation | BDM blog | BDM Law
    January 17, 2023

    Deviation – bad weather following deviation?

    Over the years, we have had numerous cases involving deviation and the usual process is to get one’s ruler out and mark out the deviation from the optimal course required by the charterer, with the time and cost of the said deviation (to include bunkers and port costs etc)[...]

    Read more >
  • Happy New Year from BDM | BDM Blog | BDM Law
    January 3, 2023

    Happy New Year!

    Wishing all our clients, colleagues, friends and followers the very best for 2023. We look forward to supporting and working with you during the year ahead.[...]

    Read more >
+44 203 968 0500
+44 7887 710 950