Phoenix Services Ltd v Global Cargo Services Ltd

JurisdictionSt Lucia
JudgeHariprashad-Charles, J.
Judgment Date18 August 2003
Neutral CitationLC 2003 HC 38
CourtHigh Court (Saint Lucia)
Date18 August 2003
Docket NumberSLUHCV 0600 of 2003

High Court

Hariprashad-Charles, J.

SLUHCV 0600 of 2003

Phoenix Services Limited
and
Global Cargo Services Limited
Appearances:

Mr. Kenneth Monplaisir QC for the applicant/claimant.

Mr. Peter Foster for the respondent/defendant.

Injunction - Application for injunction — Company to provide warehousing of goods and freights and the transfer of cargo for the airlines — Company leased warehouse facility — Lease terminated — New lease company prevented from removing freight — Who is charged with the responsibility of goods being transported from one port to another — St. Lucia Air and Sea Ports Authority Act — Application dismissed.

Hariprashad-Charles, J.
1

This is an application for an injunction to restrain the respondent, Global Cargo Services Limited from preventing the applicant, Phoenix Services Limited trading as Hewanorra Air Cargo Services (HACS), its servants or agents from having access to and from the respondent's leased warehouse known as the Hewanorra Cargo Facility in Vieux Fort and to remove cargo from it.

Background Facts
2

HACS operates as an air cargo sales and handling agency for Air Jamaica, Air Canada, British Airways, Virgin Atlantic and BWIA at the Hewanorra International Airport, Vieux Fort. HACS has contracts with these airlines. As part of their contract, HACS has to provide, among other things the warehousing of goods/freight and the transfer of cargo for the airlines which is regulated and controlled by law by the St. Lucia Air & Sea Ports Authority (SLASPA). From 1994 to January 2003, HACS leased the Hewanorra Cargo Facility from SLASPA. The lease was terminated in early 2003 when Global Cargo successfully tendered for and was granted the lease of the said Cargo Facility. Global Cargo then became the Air Cargo Facility Operator. By letter dated 15 th January 2003, the Customs & Excise Department acknowledged Global Cargo as the new Operator of the said Cargo Facility and apprised the Company of the requirements to be observed prior to commencing operations.

3

One of the requirements was the establishment of Customs Bonds C58 and C47. Global Cargo possesses both bonds (Exhibits AN2 and AN3). The C58 Bond is a general bond for securing duty on goods warehoused in a private warehouse or customs area. The C47 Bond is a bond for the removal of goods landed at one port or place for entry at another port or place.

4

The grant of the lease by SLASPA to Global Cargo seemed not to have gone down well with HACS. After all, HACS was the lessee of the said warehouse for approximately 10 years. It seemed that HACS resisted the fact that it no longer occupies the Cargo Facility and certain obstacles were created preventing the smooth operations of Global Cargo.

5

One of the responsibilities of Global Cargo by virtue of its leased agreement is the cartage or transportation of goods from one bonded warehouse being the Hewanorra Cargo Shed to another bonded warehouse being George F.L. Charles Shed at Vigie for entry into St. Lucia. It is for this responsibility that Customs mandated that Global Cargo establish a C47 Bond.

6

A problem arose with the issue of cartage between Global Cargo and HACS when HACS wanted to remove freight from the said warehouse and Global Cargo objected on the basis that HACS no longer occupies the warehouse and as such, it has no right to the removal of freight in accordance with Global Cargo's contract with Anchorage Investment Ltd, a subsidiary of SLASPA (Exhibits AN5 and AN6).

7

As a result, a meeting was convened on 24 th February 2003 with a view to resolving the issue of cartage. The meeting was attended by both parties as well as a representative from SLASPA and Customs. It is acknowledged by Mr. Eldridge Stephen, Managing Director of HACS that his Company's C47 Bond for the transfer of freight would be revoked and consequently HACS will no longer move...

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