Page 1

Spiliada Maritime Corpn v Cansulex Ltd, The Spiliada

[1987] AC 460, [1986] 3 All ER 843, [1986] 3 WLR 972, [1987] 1 Lloyd's Rep 1, 130 Sol Jo 925, [1987] LS
Gaz R 113, [1986] NLJ Rep 1137, [1987] LRC (Comm) 356

Court: HL

Judgment Date: 19/11/1986

Catchwords & Digest

PRACTICE AND PROCEDURE - COMMENCEMENT OF PROCEEDINGS - SERVICE OF PROCESS -

SERVICE OUT OF THE JURISDICTION - CIRCUMSTANCES WHEN SERVICE OUT OF THE
JURISDICTION ALLOWED - ACTIONS ON CONTRACTS - CONTRACT BY ITS TERMS OR BY
IMPLICATION TO BE GOVERNED BY ENGLISH LAW - SERVICE OF PROCESS -- SERVICE OUTSIDE
JURISDICTION -- ACTION UNDER CONTRACTS GOVERNED BY ENGLISH LAW
Plaintiffs unconnected with England obtained leave under RSC Ord 11 to serve a writ outside the jurisdiction
on defendants also unconnected with England. The defendants' application to set aside or stay the
proceedings was refused at first instance. This was largely because they were already defendants to similar
proceedings in England which, although brought by different plaintiffs, raised similar factual and legal issues
and involved the same lawyers and experts on each side. The defendants successfully appealed against that
refusal. On further appeal by the plaintiffs:

Held: (i) Where a defendant had been served within England, so that jurisdiction had been founded as of
right, he could apply to the court to exercise its discretion to stay the proceedings on the ground known as
forum non-conveniens. If he did, the burden was on him to satisfy the court that there was another forum
having jurisdiction which was the "appropriate forum" for the action because in it the case could be tried more
suitably for the interests of all the parties and for the ends of justice. In discharging this burden, he had to
satisfy the court not merely that England was not the natural or appropriate forum, but that another forum
was actually more appropriate. In this context, the court had to look for connecting factors pointing to another
forum. Those factors would include not only matters of convenience, eg availability of witnesses, but also
matters like the law governing the transaction or the parties' places of residence or business. If the court
concluded that there was no forum more appropriate for trial of the action, it would normally refuse a stay. If it
concluded that there was, it would normally grant a stay, unless the plaintiff showed that there were special
circumstances by reason of which justice required that a stay should nevertheless not be granted.

(ii) In cases where leave for service outside the jurisdiction under Ord 11 was concerned, similar
considerations applied. However, in such cases the burden rested on the plaintiff, not on the defendant; the
plaintiff had to show why a foreign defendant should be required to appear before an English court. A more
fundamental distinction was that in Ord 11 cases the plaintiff was seeking to persuade the court to exercise
its discretionary power to permit service on the defendant outside the jurisdiction. Special regard also had to
be had to the fact that the jurisdiction under Ord 11 might be exorbitant.

(iii) In the instant case, the judge at first instance had applied the correct principles. He had been entitled to
attach the weight he did to the fact that in London experienced teams of lawyers and experts with knowledge
of the issues involved were already available to both sides. The solution of disputes concerning the
respective merits of trial in England or abroad was pre-eminently a matter for him. The instant case was not
appropriate for interference with the exercise of his discretion, and the plaintiffs' appeal against the decision
of the appellate court would be allowed.

Case History
 Page 2

Annotations Case Name Citations Court Date CaseSearch

[1987] AC 460, [1986] 3
All ER 843, [1986] 3
WLR 972, [1987] 1
Spiliada Maritime
Lloyd's Rep 1, 130 Sol CaseSearch
-- Corpn v Cansulex Ltd, HL 19/11/1986
Jo 925, [1987] LS Gaz Entry
The Spiliada
R 113, [1986] NLJ Rep
1137, [1987] LRC
(Comm) 356
Spiliada Maritime [1985] 2 Lloyd's Rep
CaseSearch
Reversing Corpn v Cansulex Ltd, 116, [1985] LS Gaz R CA 07/03/1985
Entry
The Spiliada 1416

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 Page 8

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 Page 9

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2048

Cases considered by this case

Annotations: All CasesCourt: ALL COURTS
Sort by: Judgment Date (Latest First)
Treatment Case Name Citations Court Date CaseSearch
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