Originally from International Arbitration Court Decisions - 3rd Edition

DECISIONS OF THE BREST COUNTY COURT AND

THE PARIS COURT OF APPEALS RENDERED IN 2000: THE NOGA CASE AND THE SEIZURE OF THE SEDOV 

I. THE SEIZURE OF THE SEDOV

Subject-Matter:
Whether the seizure pursuant to an SCC Institute Award1 of the Sedov, a Russian tall ship, by NOGA, a creditor of the Russian Federation, was contrary to international public law, French national law or international private law.

Findings:
(1) State-owned vessels carrying out commercial duties are, pursuant to the Montego Bay Convention, subject to the rights of national sovereignty of the state in whose waters they are and therefore seizable by that state.
(2) An entity with separate legal status cannot be liable for the debts of another entity. The law of the country of the entity in question must be examined to deteremine whether it has separate legal status, but also the criteria in French law. The Murmansk State Technical University (“MSTU”) has separate legal status and was not liable for the debts of the Russian Federation.
(3) International private law must be cumulatively applied to the law of the state in question when determining which of its assets are seizable against its debts. The Russian constitution provides that it is not liable with any of its property under the operational control or management of another party. The Sedov, property of the Russian Federation but under MSTU’s operational control, is therefore not seizable.

Parties:
Claimants: 1. The Murmansk State Technical University (Russian Fed.) 2. Association Brest 2000 (“Brest 2000”) (France)
Respondents: 1. Compagnie NOGA d’Importation et d’Exportation
(“NOGA”) (Switzerland)
2. The Government of the Russian Federation (“the Russian Federation”)
3. Fauveder SA (France)
Joint Party: Brest County Court public prosecutor