Dateline Navigation Co. v. Global Container Lines ( Bahamas ) Ltd.
T-2725-92
Noël J.
9/11/92
3 pp.
Motion for order rescinding arrest warrant for oil bunkers on ship on ground Court lacking jurisdiction to issue warrant or defendant not owner of oil bunkers -- Plaintiff seeking interim measure of protection to keep oil bunkers in Canadian jurisdiction pending outcome of arbitration proceedings -- Statement of claim alleging defendant time charterer of vessel and owner of bunkers -- Cause of action arising out of dispute surrounding previous time charter involving same parties, under arbitration at London -- Neither party residing in Canada, time charter executed at London, not involving transport to or from Canada, no connection with Canada -- Arrest warrant obtained to secure unsecured portion of claim in arbitration proceedings -- Federal Court Act, s. 22(2)(i) giving Trial Division jurisdiction over any claim arising out of any agreement relating to carriage of goods in or on ship or to use or hire of ship whether by charter party or otherwise -- S. 43(3) providing jurisdiction in rem under s. 22(2)(i) cannot be exercised unless at time of commencement of action property subject of action beneficially owned by person who was beneficial owner at time cause of action arose -- Application allowed -- Cause of action underlying action in rem arising out of dispute surrounding time charter under arbitration at London -- Oil bunkers, object of action in rem not beneficially owned by defendant at time contemplated by s. 43(3) -- Plaintiff's motion dismissed -- No evidence (1) defendant unable to pay if plaintiff successful, (2) as to merits of case under arbitration, (3) as to balance of convenience -- Federal Court Act, R.S.C., 1985, c. F-7, ss. 22(2)(i), 43(3).