Yew Huoi, How & Associates | Leading Malaysia Law Firm

SHIPPING – ADMIRALTY IN REM – ANCHORED BUT NOT ADRIFT: REDEFINING “SHIP” IN ADMIRALTY JURISDICTION

1. Summary and Facts

In Vallianz Shipbuilding & Engineering v Owner of the Vessel “Eco Spark” [2025] 1 Lloyd’s Rep 195, the Singapore High Court examined the classification of a vessel named Eco Spark, a steel dumb barge converted into a stationary floating fish farm. The vessel lacked propulsion, navigational equipment, and was anchored to the seabed by spud legs. Despite these modifications and its current stationary status, the primary legal question was whether it qualified as a “ship” under the High Court (Admiralty Jurisdiction) Act 1961 (“HCAJA”).

2. Legal issues

i. The central legal issue was determining the definition of a “ship” under Section 2 of the HCAJA. Specifically, whether the Eco Spark, in its converted and stationary condition, retained its character as a ship capable of invoking the court’s admiralty jurisdiction, or if its conversion into a non-navigational structure negated such status.

3. Court Findings

• The Singapore High Court held that Eco Spark was still a “ship” as defined by the HCAJA. The Court emphasized that navigability and capability, rather than actual usage or frequency of navigation, were key determinants. Important factors included:
i. Capability and design for navigation.
ii. Stability, seaworthiness, and capacity to handle maritime perils.
iii. Status of registration and classification with flag states.
iv. The stationary nature alone does not eliminate navigability.

• The defendant’s application to strike out the action and to set aside the warrant of arrest was consequently dismissed. Nevertheless, due to an existing arbitration clause, the court stayed the proceedings in favour of arbitration, maintaining the arrest of Eco Spark as security for potential arbitration awards.

4. Practical Implications

This judgment significantly broadens the understanding of “ship” within admiralty jurisdiction, emphasizing navigational capability rather than actual current use or condition. The decision provides clarity and guidance for legal practitioners and maritime businesses, ensuring that vessels converted to stationary purposes or non-traditional maritime use may still fall under admiralty jurisdiction, preserving crucial legal remedies and securities.

In Malaysia like the United Kingdom, the definition of a “ship” within admiralty jurisdiction is guided by the Senior Courts Act 1981, which grants the High Court authority over various maritime matters, including disputes involving ships. The Act does not provide an explicit definition of “ship”, leading UK courts to rely on common law principles and case law to interpret the term.

UK courts have adopted a functional approach, focusing on a vessel’s design and capability for navigation, rather than its current use or operational status. This approach aligns with the reasoning in the Singapore High Court’s decision in the “Eco Spark” case, suggesting that a vessel originally built for navigation retains its status as a ship under admiralty law, even if it has been repurposed for stationary use.

Recent Post

LEGAL UPDATES – THE SILENT CURVE: WHY MEDICAL PREMIUMS SUDDENLY SPIKE

Medical insurance premiums do not increase gradually. They rise exponentially. For many years, costs appear manageable, giving policyholders a false sense of stability. However, once the insured reaches their mid-60s, medical charges begin to accelerate sharply, and after age 70, they often outpace the premiums by several multiples.

This happens because medical insurance is funded from a finite pool of money – an investment “bucket” – while the medical rider functions like an engine that consumes more fuel as the insured ages. When the engine grows faster than the bucket can be replenished, depletion is inevitable. The result is sudden premium hikes, demands for top-ups, or policy lapse – not due to misconduct or missed payments, but due to the structural design of the product itself.

Read More »

THE ‘COVER UNTIL 99’ MYTH – WHY INSURANCE AGENTS GET IT WRONG

Consumers must stop relying on what insurance agents say and start reading what insurance policies actually provide. ‘Medical cover until 99’ does not mean guaranteed coverage at an affordable premium. In reality, medical insurance charges rise exponentially after age 70, often making the policy mathematically unsustainable. By the time policyholders realise this, they are told to top up tens of thousands of ringgit or lose coverage altogether.

Read More »

STRATA TITLES ACT – DEVELOPER MUST ACCOUNT FOR COMMON PROPERTY COMPENSATION: HIGH COURT IMPOSES CONSTRUCTIVE TRUST

In JMB Kelana Square v Perantara Properties Sdn Bhd & Ors [2025] 12 MLJ 51, the High Court held that a developer who received compensation for land compulsorily acquired for the LRT 3 project could not retain sums attributable to common property. Although the compensation was paid entirely to the developer as registered proprietor, the Court found that part of the acquired land constituted common property, and the developer therefore held RM6.05 million on constructive trust for the Joint Management Body. The decision affirms that JMBs have proprietary standing to recover compensation for common property and that courts will intervene to prevent unjust enrichment in strata developments.

Read More »

UNFAIR DISMISSAL – MEDICAL LEAVE IS NOT MISCONDUCT: HIGH COURT UPHOLDS INDUSTRIAL COURT’S PROTECTION OF SICK EMPLOYEE

In Aerodarat Services Sdn Bhd v Lawerance Raj a/l Arrulsamy & Anor [2025] 11 MLJ 26, the High Court dismissed an employer’s judicial review and affirmed that prolonged medical leave does not, by itself, amount to misconduct justifying dismissal. The Court held that the employer failed to prove the critical element of intention not to return to work or unwillingness to perform contractual duties, despite high absenteeism caused by serious illness and surgery. The ruling reinforces that employers must distinguish between genuine illness and misconduct, and cannot rely on medical absence alone to terminate employment.

Read More »

WILL AND PROBATE – COURT OF APPEAL INVALIDATES WILL OF 97-YEAR-OLD TESTATOR: CAPACITY, SUSPICION AND UNDUE INFLUENCE PROVED

In Kong Kin Lay & Ors v Kong Kin Siong & Ors [2025] 5 MLJ 891, the Court of Appeal set aside a will executed by a 97-year-old testator, holding that there was real doubt as to testamentary capacity, compounded by serious suspicious circumstances and undue influence by certain beneficiaries. The Court emphasised that while the “golden rule” is not a rule of law, failure to obtain medical confirmation of capacity where doubt exists is a grave omission. Credibility issues with the drafting solicitor, beneficiary involvement in the will’s preparation, and suppression of evidence led the Court to declare the will invalid and order intestacy.

Read More »

NOT AN ‘AGREEMENT TO AGREE’: ENGLISH COURT OF APPEAL SAVES LONG-TERM SUPPLY CONTRACT DESPITE OPEN PRICE CLAUSE

In KSY Juice Blends UK Ltd v Citrosuco GmbH [2025] 2 Lloyd’s Rep 581, the UK Court of Appeal held that a long-term supply contract was not unenforceable merely because part of the price was stated as “open price to be fixed”. The Court implied a term that, in the absence of agreement, the price would be a reasonable or market price, noting that the product’s value could be objectively benchmarked against the market price of frozen concentrated orange juice. Emphasising that courts should preserve commercial bargains rather than destroy them, the decision confirms that section 8(2) of the Sale of Goods Act 1979 operates as a saving provision, not a bar to enforceability.

Read More »
en_USEN
× Contact Us