A cargo of 7,279.5 mt of compound fertilizer, carried from St Petersberg in Russia to Waterford in Ireland on board the MV Sonata under a bill of lading dated 12 January 2007, was damaged. Common Market Fertilizer SA and Grassland Fertilizers (Kilkenny) Ltd (the plaintiffs) claimed breaches of contract of carriage and duty, including negligence, and sought damages.

On 29 January 2007, the MV Sonata was arrested. The Arrest Convention 1952 is given effect in Ireland via the Jurisdiction of the Courts (Maritime Conventions) Act 1989. Article 8.2 of the Arrest Convention 1952 allows the arrest of a ship flying the flag of a non-contracting State in the jurisdiction of a contracting State in respect of a maritime claim. The MV Sonata was flagged in a non-contracting State (Commonwealth of Dominica).

The owners and interested persons of the MV Sonata (the defendants) claimed that there was an arbitration agreement between the parties pursuant to an arbitration clause in the charterparty which was incorporated into the bill of lading. The defendants sought four court orders: (1) to stay the plaintiff's claim pursuant to s 5 of the Arbitration Act 1980; (2) to set aside the arrest or release the MV Sonata from the arrest and custody of the Admiralty Marshal; (3) to fix the quantum of security required for the release of the MV Sonata from arrest; and (4) to provide for the defendant's cost of this application and the proceedings.

Held: Application refused.

Since Ireland was a contracting State, the Irish court had jurisdiction to arrest the MV Sonata.

The charterparty was generated subsequent to the bill of lading and therefore could not form part of the bill of lading.

The Judge deemed the sum of USD 950,000 as appropriate security to release the MV Sonata from arrest.