Minmetals Logistics Zhejiang Co Ltd v The Owners and Underwriters of the MV ‘Smart’ and Another

The MV ‘Smart’, a bulk carrier time-chartered by Minmetals Logistics Zhejiang Co Ltd (a Chinese company), ran aground and sank near the Richards Bay harbour entrance in August 2013. This led to multiple proceedings: London arbitration between the shipowners and Minmetals concerning a safe port warranty; delictual claims in South Africa involving Transnet National Ports Authority (TNPA); and an action by the owners against Transnet in the KwaZulu-Natal High Court. In the South African action, Transnet sought discovery of documents generated in the London arbitration. The owners resisted disclosure on grounds of privilege and confidentiality arising from the arbitration agreement with Minmetals, stating they could not waive confidentiality without Minmetals’ consent. Minmetals refused consent. To avoid conflicting orders between South African and English fora, the owners applied for Minmetals to be joined, as a peregrinus, to Transnet’s application to compel discovery. The High Court granted the joinder under s 5(1) of the Admiralty Jurisdiction Regulation Act 105 of 1983. Minmetals appealed that joinder order to the Supreme Court of Appeal.

The appeal was struck from the roll. Minmetals was ordered to pay the costs of the first and second respondents, including the costs of two counsel where employed.

The judgment clarifies the breadth of joinder powers under s 5(1) of the Admiralty Jurisdiction Regulation Act, confirming that South African admiralty courts may join peregrinus third parties for procedural purposes where substantially the same issues arise. It also reinforces the modern, interest-of-justice-based approach to appealability, emphasising that interlocutory procedural orders in admiralty matters are generally not appealable. The case is important for maritime litigation involving cross-border disputes and confidential arbitration material.