Margem Chartering Co. Inc. v. Cosena SRL and The "Bocsa"

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

This was a motion by the shipowner to strike out the In Rem Statement of Claim and set aside the arrest . The Plaintiff had entered into a charter party agreement with the "disponent owner" of the ship for the carriage of coal. Upon arrival at the port of loading the vessel was detained by Coast Guard and was unable to load her cargo. The Plaintiff then commenced the action against the owners and arrested the ship for the breach of charter party. The main issue in the case was whether the charterparty was with the shipowner or with the "disponent owner". Upon reviewing the evidence the Prothonotary held that the charterparty was with the "disponent owner" and struck out those portions of the Statement of Claim alleging breach of contract by the shipowner. The Prothonotary, however, did not set aside the warrant for arrest as the Plaintiff had a possible cause of action against the shipowner in tort and such a claim was enforceable In Rem pursuant to section 22(2)(i) of the Federal Court Act.