In the dispute between Hamburg shipping company E.R. Schiffahrt and investment firm MPC Flottenfonds III, the Higher Regional Court of Hamburg (Oberlandesgericht Hamburg – OLG) ruled in favour of E.R. Schiffahrt on July 25, 2014.
The purpose of the interim injunction proceedings was to secure the funds arising from the sales proceeds for the 14 ships in order to settle E.R. Schiffahrt’s claims. The OLG’s ruling ensures that this will now happen.
Under the ship management agreement, E.R. Schiffahrt is entitled to a share of around USD 50 million of the sales proceeds from the ships.
The dispute between E.R. Schiffahrt and the management of MPC Flottenfonds III arose as a consequence of the early sale of the ships last year.
The Hanseatic Higher Regional Court of Hamburg upheld charter shipping company E.R. Schiffahrt’s interpretation of the law.
In an earlier hearing on July 2, 2014, the court’s Senate had already set out its concurrence with E.R. Schiffahrt’s position, and this was reaffirmed by the ruling.
However, the Senate had called upon both parties to reach an out-of-court settlement – both in the interests of the 8,000 or so investors and to avoid a protracted legal dispute.
E.R. Schiffahrt had agreed to do this, and offered negotiations. However, the management of MPC Flottenfonds III did not take up this offer.
As a result, court proceedings will have to be continued. E.R. Schiffahrt’s management said it was encouraged by the Hanseatic Higher Regional Court’s ruling and would pursue its claims further in the main proceedings before the Hamburg Regional Court (Landgericht).
Press Release; July 31, 2014