On 1 February 2016 a collision occurs between the Kookaburra, and the Bluebird, both of which are large container vessels, four miles from the port of Swansea. The Kookaburra is flagged to
Australia and owned and operated by McLennan Enterprises Pty Ltd, a company based in Sydney, Australia. The Bluebird is owned and operated by Malky Ltd, a UK company, and flies the UK flag. The
accident is due wholly to the fault of those on the Kookaburra. As a result of the collision, both vessels are a total loss; both hulks are towed into a Swansea breaker’s yard by Tawe Salvage Ltd
at a cost of £50,000 per vessel. The master and the watchkeeper of the Kookaburra are arrested by the UK authorities and bail is set at £2.5 million for each of them. Both are Australian citizens;
the government of Australia complains formally that the bail is too high and that the crew is being unfairly and illegally punished.
On 2 February 2016, the Peloton, a large container vessel owned and operated by Hodson Inc, is navigating towards the port of Liverpool when a storm arises of a severity not seen in ten years.
Fearful of storm damage, the master of the Peloton reasonably beaches the vessel in a nearby bay to ride out the storm. On 4 February 2016 the Peloton is refloated by Goodison Salvage Inc at a cost
of £200,000. Hodson Inc seeks a contribution to the salvage costs from the various cargo interests, who refuse to pay, whereupon Hodson withholds delivery of any cargo until payment is made.
Victor’s Vegetables Ltd, the main cargo interest in the voyage, claims that Hodson Inc’s actions are unlawful and seeks delivery of the cargo.
On 15 February 2016, the Lorikeet, a large container vessel flagged to Australia, enters the port of Swansea. Malky Ltd is keen to arrest the Lorikeet as part of its action in respect of the
collision between the Kookaburra and the Bluebird. The ownership of the Lorikeet is as follows: 90% of the shares are owned by McLennan Enterprises and 10% are owned by a Miss Sheila McLennan, the
18 year-old daughter of the managing director of McLennan Enterprises.
On 18 February 2016 the Galah, a container vessel that is also flagged to Australia, enters the port of Swansea. On 19 February 2016 Malky Ltd arrests the vessel, having read in Container Weekly, a
respected shipping magazine, that the Galah is owned by McLennan Enterprises. It transpires that the Galah is actually owned by McLaren Enterprises Pty Ltd, an entirely unconnected Australian
shipping company. McLaren Enterprises suffers large losses owing to the delay occasioned by the arrest and seeks damages from Malky.
On 1 March 2016 Malky Ltd learns that the Emu, wholly owned by McLennan Enterprises, is due to enter the port of Bristol. On 2 March 2016 Tawe Salvage complains that they have not received payment
for salvaging the Kookaburra. The crew of the Emu has also not been paid for 4 months.
Advise the parties.