Précis: The court declined to return security given by cargo interests even though the shipowner was bankrupt, unbeknownst to the parties, at the time security was given.
Full SummaryFish Maker LLC v. The "Zodiak" et al., 2004 FC 6700
The Defendants brought this application to release the Defendant vessel from arrest without bail or, alternatively, to set bail. The Prothonotary refused to release the ship without bail noting that this will only be done in rare instances where the circumstances are quite extraordinary or where the case is beyond doubt hopeless. Accordingly, the Prothonotary set security at an amount …
Full SummaryNorth King Lodge v. The "Gowlland Chief" et al., 2003 BCSC 947
This was an application to set aside the arrest of the Defendant vessel or alternatively for setting the form and amount of security. The underlying action concerned the sinking of the Plaintiff’s vessel due to the alleged negligence of the Defendants. The motions Judge considered first whether the arrest should be set aside due to abuse of process and noted …
Full SummaryCyber Sea Technologies Inc. v. Underwater Harvester, 2002 FCT 794
In this matter a submersible was arrested and the Defendant brought an application, inter alia, to release the submersible without bail or, in the alternative, to post security. The grounds for the Defendant’s application were that the action was without merit and that the dispute was subject to arbitration. The Prothonotary held that it is only in exceptional circumstances that …
Full SummaryC.P. Ships (Bermuda) Ltd. v. The "Panther Max", 2002 FCT 406
This was an appeal from an order of a Prothonotary requiring the Defendants to pay $780,500.00 as security to obtain the release from arrest of the Defendant vessel and an additional 20% as a provision for interest and costs. The appeal Judge affirmed the award of the Prothonotary holding that he had properly understood and applied the correct test, namely, …
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