Canadian Sub Sea Hydraulics Limited v. The “Cormorant”

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

This was an application by the Defendant to set bail for the release of its ship from arrest. The underlying claim of the Plaintiff was for unpaid invoices relating to the provision of goods and services to the ship. There was also a counterclaim by the Defendant. The Court noted that bail was to be determined based on the Plaintiff’s reasonably arguable best case and further noted that ordinarily this would be the amount of the Plaintiff’s claim. However, the Court further noted that it could set bail at a lesser amount where the circumstances warranted. The Court was particularly troubled by a detailed affidavit filed by the Defendant containing serious allegations against the Plaintiff and which was not challenged or contradicted by any evidence from the Plaintiff. In light of this affidavit, the Court set bail at an amount equal to approximately one-half of the Plaintiff’s claim.