Précis: The Federal Court held that an in rem action was available whenever damage was done by those in charge of a ship with the ship as the instrument.
Full SummaryArtificial Reef Society of Nova Scotia v. Canada, 2010 FC 865 (CanLII)
The plaintiff in this matter arrested a decommissioned naval vessel. Although it is not obvious from the reported reasons, the plaintiff appears to have alleged an agreement with the Crown for the transfer of the vessel to it but the Crown intended to have the vessel scrapped. In any event, the vessel was arrested at the instance of the plaintiff …
Full SummaryMorecorp Holdings Ltd. v. Island Tug & Barge Ltd., 2009 BCSC 1614
This was an application to set aside the arrest of the “ITB Pioneer”. The case concerned various allegations of breaches of a share purchase agreement between the parties. The plaintiff alleged, inter alia, that it was a term of the share purchase agreement that the parties would enter into a further agreement whereby the plaintiff’s tugs would be used to …
Full SummaryDragage Verreault Inc. v. The Atchafalaya, 2009 FC 273
This matter arose out of a contract for the dredging of a channel. The plaintiff was the head contractor under the dredging contract. The plaintiff subcontracted the job to a company known as B+B Dredging. The contract specified the work was to be done by the "Atchafalaya" which was owned by a company called Proteus and under bareboat charter to …
Full SummaryKremikovtzi Trade v. Phoenix Bulk Carriers Ltd., 2007 FCA 381
This was a claim in rem against the owners and all others interested in a particular cargo. This particular application was a re-hearing of various issues that had been referred back to the Court of Appeal after the Supreme Court of Canada overturned the Court of Appeal on the issue of in rem jurisdiction in Phoenix Bulk Carriers Ltd. v. …
Full SummaryF.C. Yachts Ltd. v. Vessel Bearing Hull No. QFY10703E709 (Yacht), 2007 FC 1257
The Plaintiff builder was building two yachts for the Defendant. The first yacht was substantially completed and payments were up to date. The Defendant was, however, alleged to be in arrears on the payments in respect of the second yacht. The builder commenced proceedings in respect of the second yacht but arrested the first yacht as a sistership to the …
Full SummaryLabrador Sea Products Incorporated v. Northern Auk (Ship), 2007 FC 679
In this matter the Defendants had apparently removed fishing gear and other equipment from a vessel that was under arrest. The Court found the Defendants guilty of contempt, fined them $5,000 each and ordered that they pay costs fixed at $15,000. The Court noted that the requirements for contempt are: 1. the party alleging contempt has the burden of proving …
Full SummaryMaritima de Ecologia, S.A. de C.V. v. Maersk Defender (Ship), 2007 FCA 194
In this matter Secunda discussed with the Appellant an arrangement whereby Secunda, or a company controlled by it, would purchase the Maersk Defender, modify the vessel to meet the requirements of the Appellant and then charter the vessel to the Appellant. Subsequently Atlantic, a company controlled by Secunda, entered into an agreement with Maersk to purchase the vessel and entered …
Full SummaryPhoenix Bulk Carriers Ltd. v. Kremikovtzi Trade, 2007 SCC 13
By contract of affreightment between the Appellant and the Respondent, the Respondent agreed to ship a cargo of coal on the Appellant’s vessel. In alleged breach of this contract, the Respondent entered into a second contract of carriage with another shipowner and loaded the coal on board that shipowner’s vessel. The Appellant commenced an in rem proceeding against the cargo …
Full SummaryHansen v. The Trinity (Ship), 2007 BCSC 225
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 …
Full Summary