Caterpillar Overseas S.A. v. Canmar Victory (The)

In Admiralty Jurisdiction on (Updated )

This was an appeal from a decision of the Trial Division denying a motion by the Third Party Defendant for an order dismissing the Third Party Claim on the grounds that the court lacked jurisdiction. The main claim by the Plaintiff was for damage caused to an engine shipped in a container and carried from Chicago to Denmark via the Port of Montreal. The Defendant brought Third Party proceedings against the American company who was responsible for loading the container. The Third Party challenged the jurisdiction of the Federal Court on the grounds that its services were performed in Illinois and that there was therefore not a sufficient nexus between it and the territorial jurisdiction of the court. The Court of Appeal held that the stuffing of a container to be placed on board a ship at Montreal was an undertaking of a maritime nature integrally connected with the carriage of goods by sea. The Court of Appeal further held that the knowing preparation of cargo for a marine voyage beginning in Canada is an "act, conduct or agreement" that can be related in personam to the territorial jurisdiction of the Federal Court.