Tecoil Shipping Ltd v Neptune EHF & Others [2021] EWHC 1582

Following an in rem default judgment against “POSEIDON”, the Defendant insurers rejected the Claimant’s demand under the LOU arguing that judgment was only effective against the res and not binding on owners (now in liquidation). The Claimant then obtained an in personam default judgement and the insurers’ application to set it aside (on the basis that no collision statement of claim had been filed) was dismissed by the Court (which found no such requirement in the absence of acknowledgment of service). Further, the argument that the in rem judgment was not binding was irrelevant, the new proceedings being in personam, in which the Registrar’s in rem decision was conclusive evidence. The insurers should have contested the in rem proceedings but any re-litigation of issues was unlikely to reduce the claim below the LOU amount and would put disproportionate costs on the Claimant.