- The merits test torpedoes service out of the jurisdiction (Kawasaki Kisen Kaisha v James Kemball)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Dispute Resolution analysis: Kawasaki Kisen Kaisha Ltd’s (KKKL) subsidiary, K-Euro, made haulage arrangements in the UK for KKKL’s shipping business. Under an agreement with James Kemball Ltd (JKL), K-Euro was obliged to offer a minimum volume of haulage to JKL for three years. KKKL merged its global container transport business, meaning it had no haulage to offer K-Euro, and K-Euro had no haulage to offer JKL. JKL sued KKKL for inducing breach of contract. The High Court permitted the claim to be served out of the jurisdiction. KKKL appealed and JKL applied (concurrently) to amend its claim. The Court of Appeal allowed the appeal and refused the amendment because JKL had failed to show a real prospect of success. Written by Richard Clayman, senior associate at Kingsley Napley LLP.
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