MARITIME LAW
Contracts
Plaintiff building two yachts for defendant Splash Holdings Ltd. (Splash)—Splash allegedly failing to make progress payments—Plaintiff taking action in rem against yachts—Absent maritime lien, no statutory right in rem unless personal liability of ship owner engaged—Issue whether Splash beneficial owner of yachts—Contract between parties showing builder holding title during construction, title and risk only to pass upon delivery of yachts—Splash therefore mortgagee, not beneficial owner— As plaintiff legal, beneficial owner of both yachts, not entitled to proceed in rem against them—Action in rem dismissed.
F.C. Yachts Ltd. v. Splash Holdings Ltd. (T‑1796‑07, 2007 FC 1257, Harrington J., order dated 30/11/07, 11 pp.)