This was an application, inter alia, to reduce the amount of security posted to release the vessel from arrest. The Court reduced the amount of security by 20% on the basis that the Court was satisfied that the claim would not succeed in full. The Court noted that the right of a Plaintiff to full security must be balanced so …
Full SummaryNHM Internatinal Inc. v. F.C. Yachts Ltd. et al., 2003 FCT 373 (CanLII)
This matter concerned a dispute over the construction of a vessel. The Defendant had agreed to construct the vessel for a fixed price and progress payments were made by the Plaintiff during the course of construction. The vessel was, however, not completed on time and the Plaintiff went into possession as mortgagee under a builder’s mortgage. The Plaintiff also arrested …
Full SummaryTrawlercat Marine Inc. v. The "Amity", 2002 FCT 1181
The Defendant obtained plans from the Plaintiff for a 55′ catamaran which the Defendant intended to build. The Defendant decided not to proceed with the project and later retained a naval architect to design a 70′ catamaran. The Plaintiff subsequently commenced this in personam and in rem action alleging breach of a contract to execute a purchase and construction agreement …
Full SummaryStriebel v. The "Chairman", 2002 FCT 925
The issue in this motion concerned the amount of security to be provided to a shipbuilder who had failed to complete construction of a yacht within the time frame required by the building contract. The purchasers took possession of the yacht as mortgagees and moved it to the yard of another builder for completion. The shipbuilder counterclaimed for lost profits …
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 SummaryWhyte v. The "Sandpiper VI", 2002 FCT 271
In this matter the Plaintiff had arrested the Defendant dredge and afterwards learned that the “spoils pipeline” had been rented to a third party and moved. The Plaintiff thereafter brought this motion which was treated as an application to show cause order. The Defendant argued that the rented pipeline was not caught by the arrest warrant. However, the Prothonotary held …
Full SummaryStriebel v. The "Chairman", 2002 FCT 545
This case concerned a ship building contract that went awry. The Plaintiffs, the mortgagees and intended owners of the defendant ship, commenced this action against the shipbuilder for damages. The Defendant shipbuilder counterclaimed for lost opportunity to complete the construction of the vessel. These reasons deal with three interlocutory motions. The first was an ex parte motion brought by the …
Full SummaryBrooks Aviation Inc. v. Wrecked and Abandoned Boeing Sb-17g Aircraft, 2002 FCT 503 (CanLII)
This very interesting application was for an order dispensing with service of the Statement of Claim, Affidavit to Lead Warrant and Warrant. The res was a B-17 aircraft that had crash landed on a lake in Labrador during the winter of 1947. The following year the aircraft sank during the spring thaw and it remains submerged. The wreck was discovered …
Full SummaryRichardson International Ltd. v. The "MYS CHIKHACHEVA" et al., 2002 FCT 482
The issue in this motion was the interpretation of a letter of guarantee given by the Royal Bank of Canada to secure the release of the defendant vessel from arrest. By the letter of guarantee the bank agreed that if the owners did not pay a judgment against them execution could issue against the bank. The Plaintiff in due course …
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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