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Tatry (owners of the cargo) v Maciej Rataj (the owners of the ship) (Convention on jurisdiction and the enforcement of judgments) [1994] EUECJ C-406/92 (6 December 1994)
URL: http://www.bailii.org/eu/cases/EUECJ/1994/C40692.html Cite as:
[1995] ILPr 81,
[1999] 2 WLR 181,
[1999] QB 515,
[1995] 1 LLR 302,
[1995] All ER (EC) 229,
[1994] ECR I-5439,
[1995] 1 Lloyd's Rep 302,
[1995] CLC 275,
[1994] EUECJ C-406/92,
[1994] ECR I-05439
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++++ 1. Convention on jurisdiction and the
enforcement of judgments ° Relationship to other conventions ° Conventions
on a specific matter ° Convention including rules of jurisdiction °
Exclusion of application of the Brussels Convention ° Limits °
Applicability of that convention to questions not governed by the
specialized convention (Convention of 27 September 1968, Art. 57)
2. Convention on jurisdiction and the enforcement of judgments ° Lis
pendens ° Actions brought between the same parties ° Some but not all
parties to the two sets of proceedings identical ° Obligation of the
second court seised to decline jurisdiction ° Obligation limited solely to
those parties who are also parties to the action previously commenced
(Convention of 27 September 1968, Art. 21)
3. Convention on
jurisdiction and the enforcement of judgments ° Lis pendens ° Actions
involving the same cause of action and the same object ° Concept ° Action
for a finding of liability with a claim for payment by the defendant of
damages for the loss suffered, and action by that party for a declaration
that he is not liable for the same loss ° Inclusion ° Distinction in
national law between actions in personam and in rem ° Irrelevance
(Convention of 27 September 1968, Art. 21)
4. Convention on
jurisdiction and the enforcement of judgments ° Related actions ° Concept
° Independent interpretation ° Risk of conflicting decisions ° Actions
brought against a shipowner by several groups of cargo owners seeking
damages for loss which occurred during the shipment of the joint cargo and
based on contracts which are separate but identical (Convention of 27
September 1968, Art. 22)
, the terms used in Article 21 in order to determine whether a
situation of lis pendens arises must be regarded as independent (paragraph
11 of the judgment).
30 Moreover, as the Advocate General noted in his
Opinion (paragraph 14), it follows by implication from that judgment that
the question whether the parties are the same cannot depend on the
procedural position of each of them in the two actions, and that the
plaintiff in the first action may be the defendant in the second.
31
The Court stressed in that judgment (paragraph 8) that Article 21,
together with Article 22 on related actions, is contained in Section 8 of
Title II of the Convention, a section intended, in the interests of the
proper administration of justice within the Community, to prevent parallel
proceedings before the courts of different Contracting States and to avoid
conflicts between decisions which might result therefrom. Those rules are
therefore designed to preclude, in so far as is possible and from the
outset, the possibility of a situation arising such as that referred to in
Article 27(3), that is to say the non-recognition of a judgment on account
of its irreconcilability with a judgment given in a dispute between the
same parties in the State in which recognition is sought.
32 In the
light of the wording of Article 21 of the Convention and the objective set
out above, that article must be understood as requiring, as a condition of
the obligation of the second court seised to decline jurisdiction, that
the parties to the two actions be identical.
33 Consequently, where
some of the parties are the same as the parties to an action which has
already been started, Article 21 requires the second court seised to
decline jurisdiction only to the extent to which the parties to the
proceedings pending before it are also parties to the action previously
started before the court of another Contracting State; it does not prevent
the proceedings from continuing between the other parties.
34
Admittedly, that interpretation of Article 21 involves fragmenting the
proceedings. However, Article 22 mitigates that disadvantage. That article
allows the second court seised to stay proceedings or to decline
jurisdiction on the ground that the actions are related, if the conditions
there set out are satisfied.
35 Accordingly, the answer to the first
question is that, on a proper construction of Article 21 of the
Convention, where two actions involve the same cause of action and some
but not all of the parties to the second action are the same as the
parties to the action commenced earlier in another Contracting State, the
second court seised is required to decline jurisdiction only to the extent
to which the parties to the proceedings before it are also parties to the
action previously commenced; it does not prevent the proceedings from
continuing between the other parties. The fifth question
36 The
national court' s fifth question is essentially whether, on a proper
construction of Article 21 of the Convention, an action seeking to have
the defendant held liable for causing loss and ordered to pay damages has
the same cause of action and the same object as earlier proceedings
brought by that defendant seeking a declaration that he is not liable for
that loss.
37 It should be noted at the outset that the English
version of Article 21 does not expressly distinguish between the concepts
of "object" and "cause" of action. That language version must however be
construed in the same manner as the majority of the other language
versions in which that distinction is made (see the judgment in Gubisch
Maschinenfabrik v Palumbo, cited above, paragraph 14).
38 For the
purposes of Article 21 of the Convention, the "cause of action" comprises
the facts and the rule of law relied on as the basis of the action.
39
Consequently, an action for a declaration of non-liability, such as that
brought in the main proceedings in this case by the shipowners, and
another action, such as that brought subsequently by the cargo owners on
the basis of shipping contracts which are separate but in identical terms,
concerning the same cargo transported in bulk and damaged in the same
circumstances, have the same cause of action.
40 The "object of the
action" for the purposes of Article 21 means the end the action has in
view.
41 The question accordingly arises whether two actions have the
same object when the first seeks a declaration that the plaintiff is not
liable for damage as claimed by the defendants, while the second,
commenced subsequently by those defendants, seeks on the contrary to have
the plaintiff in the first action held liable for causing loss and ordered
to pay damages.
42 As to liability, the second action has the same
object as the first, since the issue of liability is central to both
actions. The fact that the plaintiff' s pleadings are couched in negative
terms in the first action whereas in the second action they are couched in
positive terms by the defendant, who has become plaintiff, does not make
the object of the dispute different.
43 As to damages, the pleas in
the second action are the natural consequence of those relating to the
finding of liability and thus do not alter the principal object of the
action. Furthermore, the fact that a party seeks a declaration that he is
not liable for loss implies that he disputes any obligation to pay
damages.
44 In those circumstances, the answer to the fifth question
is that, on a proper construction of Article 21 of the Convention, an
action seeking to have the defendant held liable for causing loss and
ordered to pay damages has the same cause of action and the same object as
earlier proceedings brought by that defendant seeking a declaration that
he is not liable for that loss. The second question
45 The
national court' s second question is whether a subsequent action has the
same cause of action and the same object and is between the same parties
as a previous action where the first action, brought by the owner of a
ship before a court of a Contracting State, is an action in personam for a
declaration that that owner is not liable for alleged damage to cargo
transported by his ship, whereas the subsequent action has been brought by
the owner of the cargo before a court of another Contracting State by way
of an action in rem concerning an arrested ship, and has subsequently
continued both in rem and in personam, or solely in personam, according to
the distinctions drawn by the national law of that other Contracting
State.
46 In Article 21 of the Convention, the terms "same cause of
action" and "between the same parties" have an independent meaning (see
Gubisch Maschinenfabrik v Palumbo, cited above, paragraph 11). They must
therefore be interpreted independently of the specific features of the law
in force in each Contracting State. It follows that the distinction drawn
by the law of a Contracting State between an action in personam and an
action in rem is not material for the interpretation of Article 21.
47
Consequently, the answer to the second question is that a subsequent
action does not cease to have the same cause of action and the same object
and to be between the same parties as a previous action where the latter,
brought by the owner of a ship before a court of a Contracting State, is
an action in personam for a declaration that that owner is not liable for
alleged damage to cargo transported by his ship, whereas the subsequent
action has been brought by the owner of the cargo before a court of
another Contracting State by way of an action in rem concerning an
arrested ship, and has subsequently continued both in rem and in personam,
or solely in personam, according to the distinctions drawn by the national
law of that other Contracting State. The fourth question
48 The
national court' s fourth question is essentially whether, on a proper
construction of Article 22 of the Convention, it is sufficient, in order
to establish the necessary relationship between, on the one hand, an
action brought in a Contracting State by one group of cargo owners against
a shipowner seeking damages for harm caused to part of the cargo carried
in bulk under separate but identical contracts, and, on the other, an
action in damages brought in another Contracting State against the same
shipowner by the owners of another part of the cargo shipped under the
same conditions and under contracts which are separate from but identical
to those between the first group and the shipowner, that separate trial
and judgment would involve the risk of conflicting decisions, without
necessarily involving the risk of giving rise to mutually exclusive legal
consequences.
49 It is clear that that question arises only if the
conditions for the application of Article 21 of the Convention are not
satisfied.
50 The third paragraph of Article 22 provides that "actions
are deemed to be related where they are so closely connected that it is
expedient to hear and determine them together to avoid the risk of
irreconcilable judgments resulting from separate proceedings."
51 The
purpose of that provision is to avoid the risk of conflicting judgments
and thus to facilitate the proper administration of justice in the
Community (see the Report on the Convention on jurisdiction and the
enforcement of judgments in civil and commercial matters, OJ 1979 C 59, p.
1, and in particular at p. 41). Furthermore, since the expression "related
actions" does not have the same meaning in all the Member States, the
third paragraph of Article 22 sets out the elements of a definition (same
report, p. 42). It follows that the concept of related actions there
defined must be given an independent interpretation.
52 In order to
achieve proper administration of justice, that interpretation must be
broad and cover all cases where there is a risk of conflicting decisions,
even if the judgments can be separately enforced and their legal
consequences are not mutually exclusive.
53 The cargo owners and the
Commission contend that the adjective "irreconcilable", which is used both
in the third paragraph of Article 22 and in Article 27(3) of the
Convention, must be used in the same sense in both provisions, meaning
that the decisions must have mutually exclusive legal consequences, as was
held in Case 145/86 Hoffmann v Krieg [1987] ECR 645 (paragraph 22). They
point out that the Court there held that a foreign judgment ordering a
person to make maintenance payments to his spouse by virtue of his
conjugal obligations to support her is irreconcilable, within the meaning
of Article 27(3) of the Convention, with a national judgment pronouncing
the divorce of the spouses (paragraph 25).
54 That argument cannot be
accepted. The objectives of the two provisions are different. Article
27(3) of the Convention enables a court, by way of derogation from the
principles and objectives of the Convention, to refuse to recognize a
foreign judgment. Consequently the term "irreconcilable ... judgment"
there referred to must be interpreted by reference to that objective. The
objective of the third paragraph of Article 22 of the Convention, however,
is, as the Advocate General noted in his Opinion (paragraph 28), to
improve coordination of the exercise of judicial functions within the
Community and to avoid conflicting and contradictory decisions, even where
the separate enforcement of each of them is not precluded.
55 That
interpretation is supported by the fact that the German and Italian
versions of the Convention use different terms in the third paragraph of
Article 22 and in Article 27(3).
56 The conclusion is therefore
inescapable that the term "irreconcilable" used in the third paragraph of
Article 22 of the Convention has a different meaning from the same term
used by Article 27(3) of the Convention.
57 Consequently the answer to
the fourth question is that, on a proper construction of Article 22 of the
Convention, it is sufficient, in order to establish the necessary
relationship between, on the one hand, an action brought in a Contracting
State by one group of cargo owners against a shipowner seeking damages for
harm caused to part of the cargo carried in bulk under separate but
identical contracts, and, on the other, an action in damages brought in
another Contracting State against the same shipowner by the owners of
another part of the cargo shipped under the same conditions and under
contracts which are separate from but identical to those between the first
group and the shipowner, that separate trial and judgment would involve
the risk of conflicting decisions, without necessarily involving the risk
of giving rise to mutually exclusive legal consequences.