Disclaimer: This work was produced by one of our professional writers as a learning aid to help you with your studies.
Any opinions, findings, conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of UK Essays.
If you would like to view samples of the work produced by our academic writers please click here.
Yukong Line Ltd of Korea v Rendsburg Investments Corporation of Liberia  2 Lloyd’s Rep 604
MAREVA INJUNCTION, CROSS-EXAMINATION, AFFIDAVIT, AFFIDAVIT OF ASSETS, ORDER FOR CROSS-EXAMINATION, SAFEGUARDS AGAINST ABUSE
In 1995, the plaintiffs, Yukong Line, who were owners of vessels, chartered the vessel Rialto to the first defendants, Rendsburg, for a period of three years. The second and third defendants – Ladidi Corporation and Mr. Dimitrios Yamvrias, acted as the undisclosed principals of Rendsburg. In January 1996, Rendsburg, informed Yukong Line that they were unable to perform the charterparty at the agreed rate due to deterioration of their financial position. In February 1996, Yukong Line purported to accept repudiation of the charterparty by Rendsburg.
The third defendant was subjected to a Mareva (asset-freezing) injunction and swore an affidavit of assets. The plaintiff, Yukong Line, applied to cross-examine the third defendant on the affidavit and the application was successful. The third defendant appealed against this court order and another order, which allowed substantive issues to be raised during this cross-examination.
(1) Could a defendant be cross-examined on an affidavit during Mareva proceedings?
(2) If so, could substantive issues be raised during this cross-examination?
(3) What safeguards are available to prevent cross-examinations from becoming a routine part of Mareva proceedings?
Both appeals were dismissed.
(1) A defendant could be cross-examined on an affidavit during Mareva proceedings where it is just and convenient to do so. However, cross-examination remains exceptional during Mareva proceedings and there can be no question of it becoming a routine part of Mareva proceedings.
(2) Although substantive issues can be raised during cross-examination, by virtue of Ord.29 r.1A Rules of the Supreme Court the plaintiffs could be prevented from improperly using cross-examination to obtain evidence for use in the substantive action as the court had jurisdiction to an application to use the evidence at trial. This is an important safeguard against plaintiffs who attempt to abuse the Mareva process by building their case on evidence obtained by cross-examination.
(3) As it is a considerable imposition to subject a defendant to cross-examination, prior to allowing cross-examination, the court must consider alternative less burdensome means of achieving the same end.
Related ServicesView all
DMCA / Removal Request
If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please.