Viktor Overseas Ltd. v. Filomena Lembo ( The )
T-2241-97
Nadon J.
19/11/97
6 pp.
Amount of bail required to obtain release of vessel Filomena Lembo-Action for US$495,025, representing cost of repairing vessel-Contract providing for 6% per month interest rate on any amount due under contract-Contract price herein due in January 1997-Plaintiff assuming case would take at least two years, with interest amounting to US $730,000, plaintiff prepared to accept bail in amount of US $1,000,000-Shipowners argue rate of interest of 6% per month illegal and outrageous-Criminal Code, s. 347(1) prohibition of criminal rates not applicable as contract entered into in Croatia and governing law English law-Interest Act, s. 4, providing rate of interest reduced to 5% per annum where less-than-yearly rate not expressed in equivalent yearly rate, not relevant where contract governed by foreign law-Rate of interest determined by law of the contract-Bail therefore fixed at US$1,000,000-Criminal Code, R.S.C., 1985, c. C-46, s. 347(1)-Interest Act, R.S.C., 1985, c. I-15, s. 4.