Pakistan National Shipping Corp. v. Canada

In Admiralty Jurisdiction on (Updated )

This was an interlocutory application to strike a third party action on the grounds that the Federal Court had no jurisdiction over the subject matter. The main action was brought by the Plaintiff carrier against the Defendant shipper to recover expenses incurred when plastic drums containing the Defendant’s cargo of canola oil began to leak and caused a collapse of stow. The Defendant, in turn, commenced Third Party proceedings alleging that the Third Party had negligently represented the quality and capacities of the plastic drums. The motions Judge allowed the Third Parties application to strike the Third Party claim. On appeal, the Court of Appeal noted that the claim was not simply for supplying defective drums but was for negligent misrepresentation and that the Third Party was well aware that the intended use of the drums was to transport oil by ships. The Court of Appeal held that the Court did have jurisdiction as the claim was integrally connected to the Court’s admiralty and maritime jurisdiction.