TRADE DEVELOPMENT BANK ν. "SHIP ""ARIADNI PA""" (1981) 1 CLR 653

(1981) 1 CLR 653

[*653] 1981 June 19

 

[TRIANTAFYLLIDES, P.]

TRADE DEVELOPMENT BANK,

Plaintiffs,

v.

THE SHIP "ARIADNI PA",

Defendant.

(Admiralty Action No. 198/79).

Judgment—Judgment by default—Foreign currency—Jurisdiction to order payment of sum expressed in foreign currency—Claim under a mortgage—Mortgage governed by foreign law and providing that payment will be made in foreign currency—Judgment expressed in foreign currency.

Costs—Costs for two advocates—In view of the many complexities of the case.

The plaintiffs in this action, by means of which they claimed various sums due to them by the defendant by virtue of a mortgage, applied for judgment against the defendant because of default to file an answer to the petition.

Held, that from the material before it this Court is satisfied that the amounts claimed are due and payable to the plaintiffs by the defendant on the basis of, and as a result of the application and operation of the relevant terms of the mortgage; that the plaintiffs are entitled to obtain a judgment payable in U.S.A. dollars, especially, as the mortgage is governed by Greek Law and it is provided by clause 6(A) of the mortgage that payment will be made in U.S.A. dollars; accordingly judgment will be given in favour of the plaintiffs and against the defendant for the amount of 591,534.99 U.S.A. dollars plus interest at 20.875% per annum.

Held, further, that the claim of the plaintiffs for costs for two advocates is justified, in the circumstances of this case, in view of its complexities; and an order for costs for two advocates [*654] is made accordingly (see Symeonidou v. Michaelides (1969) 1 C.L.R. 394 at p. 410).

Judgment for plaintiff for

591,534.99 U.S.A. dollars.

Cases referred to:

Miliangos v. George Frank (Textiles) Ltd., [1975] 3 All E.R. 801;

The Despina R. [1979] 1 All E.R. 421;

Symeonidou v. Michaelides (1969) 1 C.L.R. 394 at p. 410.

Admiralty Action.

Admiralty action for U.S. A. dollars 591,534.99 due by defendant to the plaintiffs, by virtue of a mortgage dated 29th July, 1977 with interest and various payments and expenses incurred by plaintiffs by virtue of the terms of the aforesaid mortgage.

E. Montanios with A. Skordis, for the plaintiffs. No appearance for the defendants.

E. Lemonaris, for the interveners, Grand Pale Shipping Co. Ltd.

Cur. adv. vult.

Triantafyllides P. read the following judgment. In this case the plaintiffs have applied for judgment against the defendant because of default to file an Answer to the Petition.

When the application for judgment because of default to file the Answer was initially fixed to be heard, counsel was still appearing for the defendant, but, subsequently, and before the hearing of this application, he, definitely ceased to appear in this case.

The plaintiffs, in proof of their claim, have called as a witness their Commercial Manager from Geneva, Mr. Gilles Zimra, who has stated that the total of the indebtness of the defendants is shown in a bank statement which has been produced by him; such indebtness amounts to 607,482.99 U.S.A. dollars. He added, however, that from the said indebtness there should be deducted in favour of the defendant an amount of 15,948 U.S.A. dollars, and, thus, what is claimed by the plaintiffs are 591,534.99 U.S.A. dollars.

According to the evidence of Mr. Zimra the indebtness of the defendant comprises, in fact, the following three items:

(a) An amount of 386,863.24 U.S.A. dollars due to the plaintiffs by the defendant by virtue of a mortgage which is dated July 27, 1977, and was registered in Greece on July 29, 1977. It may be mentioned, at this stage, that the defendant ship is, also, registered in Greece but it belongs to the Lambroklis Shipping Company S.A., which is registered in Panama.

(b) An amount of 20,084.41 U.S.A. dollars, being interest payable to the plaintiffs on the debt due to them by the defendant; such interest was calculated from September 15, 1979, to November 30, 1979.

(c) An amount of 184,587.42 U.S.A. dollars which is claimed by the plaintiffs as the total of various payments and expenses incurred by the plaintiffs by virtue of the terms of the aforesaid mortgage.

Between the grand total of the above three amounts, namely 591,535.07 U.S.A. dollars, and the amount of 591,534.99 U.S.A. dollars, which is the balance shown in the aforementioned bank statement, there is an insignificant, really, difference of only eight cents, but because of it the claim of the plaintiffs has been limited by them to the lesser of the above two amounts, that is 591,534.99 U.S.A. dollars.

I do not have to go at length, into the terms of the mortgage in question. I am satisfied, from all the material before me, that the aforementioned amounts are due and payable to the plaintiffs by the defendant on the basis of, and as a result of the application and operation of, the various relevant terms of the mortgage.

Also, on the strength of case-law such as Miliangos v. George Frank (Textiles) Ltd., [1975] 3 All E.R. 801, and The Despina R., [1979] 1 All E.R. 421, I am of the opinion that the plaintiffs are entitled to obtain a judgment payable in U.S.A. dollars, especially, as the mortgage—as it is stated in its clause 15—is governed by Greek Law and it is provided by clause 6(A) of the mortgage that payment will be made in U.S.A. dollars.

Judgment is, therefore, given in favour of the plaintiffs and [*656] against defendant for the aforementioned amount of 591,534.99 U.S.A. dollars, plus, according to the evidence of Mr. Zimra, interest at 20.875% per annum as from December 1, 1979.

As regards the claim of the plaintiffs for costs for two advocates, on the basis of what has been stated in Symeonidou v. Michaelides, (1969) 1 C.L.R. 394, 410, I find that such claim is justified, in the circumstances of this case, in view of its many complexities; and I make an order for such costs, to be assessed by the Registrar, subject to the approval of the Court, if necessary.

Judgment for plaintiffs for U.S.A. dollars

591,534.99. Order for costs as above.


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