The case concerns the Polish shipowners' application for the release of security and a stay of proceedings in England after the arrest of their ship, the Wladyslaw Lokietek, following a collision involving English cargo owners. The issues revolved around whether security given in Poland constituted 'previously given security' under English law, whether it was satisfactory, and whether the English Court should stay proceedings in favour of Poland. The Court examined the interpretation of s 5 of the Merchant Shipping (Liability of Shipowners and Others) Act 1958 (UK) (the Act), which implemented the LLMC 1957 in the UK, and the procedural and substantive implications of international limitation funds.

Held: The Court dismissed the Polish shipowners' applications.

The shipowners failed to show the absence of actual fault or privity, so the English cargo owners' claim did not appear to fall within the limitation in s 503 of the Merchant Shipping Act 1894 (UK); accordingly, the Polish limitation fund was not 'previously given' security, and the English security could not be released. Although the Court found the Polish security satisfactory, available if the claim were established in Poland, and sufficient when combined with further security, these favourable points did not overcome the defects under s 5 of the Act.

The Court also refused a stay of proceedings: it was not satisfied that proceedings in Poland would be substantially less inconvenient or expensive, or that a stay would deprive the English cargo owners of a legitimate advantage, suing in their own courts, full security for their claim, and adjudication by a specialist Admiralty court.

The cargo owners did not press for a default judgment, and the Court instead ordered the Polish shipowners to file a preliminary act in respect of the collision within the prescribed period.