Opinion ID: 6333370
Heading Depth: 2
Heading Rank: 3

Heading: The MV Falcon Traveller’s arrest

Text: As security for its claim against Falcon Carrier Shipping, Nadella also began arrest proceedings in South Africa against a different ship, the MV Falcon Traveller (“Traveller”). The Traveller was owned by Newbrook. But Nadella argued that, despite this nominal difference in ownership, the Traveller and the Carrier were indirectly owned 4 by the same person and so were “associated” vessels under South African law. 2 But a South African court disagreed, even though it found the assertion to be “subjectively honest.” The court determined that Falcon Carrier Shipping (and thus, before Nadella’s purchase, the Carrier) was owned by Nico Poons, while Newbrook (and thus the Traveller) was owned by Nico’s father Ronald Poons. Because the two ships were not “associated,” Nadella could not arrest the Traveller to cover losses from the bad deal it got on the Carrier. Newbrook then sued Nadella—also in South Africa—seeking damages for the Traveller’s wrongful arrest. The South African court ordered Nadella to post a bond to cover its liability to Newbrook and to pay various costs. Nadella, citing a lack of funds, failed to post that bond, or to pay costs as ordered, and that issue apparently is still pending in South Africa. See Nadella Corp. v. Motor Vessel ‘Falcon Confidence’, No. AC5/19, High Court of South Africa (Western Cape Division), 14 para. 43 (Apr. 28, 2021) (“April Judgment”) (saved as ECF opinion attachment). 3