Hansen v. The Trinity (Ship)

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

This was an application to set aside a warrant of arrest on the grounds of material non-disclosure by the Plaintiffs. The material non-disclosure was an earlier action for the same damages in which the Plaintiffs had applied for and been refused a mareva injunction. The Court held, for the first time, that full and frank disclosure is required when an application for arrest is made under the Rules of the British Columbia Supreme Court and further held that the Plaintiffs had failed to make such disclosure. In result, the arrest was set aside. (Note: This decision stands on its own, and is arguably incorrect, in requiring full disclosure to support an arrest. The Federal Court decisions on this issue suggest that such disclosure is not required. [See for example: Streibel v The “Chairman” 2002 FC 545, Magnolia Ocean Shipping v The “Soledad Maria”, [1982] 1 FC 205, and Kiku Fisheries Ltd. v. Canadian North Pacific Ocean Corporation, (1998) 137 F.T.R. 192.] )