PRACTICE |
Costs |
Nedship Bank N.V. v. Zoodotis (The)
T-186-99
2001 FCT 706, Hargrave P.
26/6/01
11 pp.
Security for costs--Plaintiff bringing motion for security for costs against Tramp Oil & Marine Ltd., latter being supplier of bunker fuel to sister ships of Zoodotis and who asserts in rem claim to sale proceeds of Zoodotis--Tramp not party to litigation but rather claimant whose entitlement to payment to be determined in future by way of priorities hearing, brought by motion, in which Tramp, other claimants, and plaintiff will contend--Tramp English company ordinarily resident out of Canada--Nedship therefore believes Tramp may have insufficient assets in Canada to pay any award of costs--Motion dismissed--No authority in Federal Court to grant security for costs payable by claimant Tramp, in favour of plaintiff Nedship, outside of Rules--Tramp must come clearly within either r. 415 or 416--Tramp clearly not party within meaning of r. 415, therefore r. 415 having no application in present instance--Clearly no authority under Federal Court Rules, or otherwise, to award costs against or to require security for costs from non-party, even where non-party claimant to ship sale proceeds--In future, where claimant goes beyond merely presenting and defending claim, progressing to providing substantive argument and material in attempt to diminish or even void claim of party or other claimant, consideration ought to be given to joining such claimant as defendant, that defendant posting security for costs as price of becoming defendant--Federal Court Rules, 1998, SOR/98-106, rr. 415, 416.