Domtar Inc. v. Lineas De Navigation Gema S.A.

In Admiralty Practice, In Rem Actions and Arrest on (Updated )

This was a motion by the Defendant shipowner to set aside an arrest and strike the in rem portions of the claim. The Plaintiff’s action was for breach of a booking note contract. The Defendant shipowner argued that the vessel could not be arrested as it was not a party to the booking note contract. The shipowner argued the booking note was between the Plaintiff and the other Defendant. The Court, however, noted that there was some evidence suggesting a close relationship between the shipowner and the other Defendant. The Court held that it was not obvious on the evidence that the shipowners were not liable in contract to the Plaintiff and refused to set aside the warrant or dismiss the in rem claim.