MARITIME LAW |
Practice |
Richardson International, Ltd. v. Mys Chikhacheva (The)
T-1944-98
2002 FCT 482, Hargrave P.
26/4/02
10 pp.
Motion to condemn provider of security, Royal Bank of Canada, to pay US$550,000--Motion resolved by consent during adjournment--Mys Chikhacheva, substantial deep-sea fishing vessel, arrested on October 13, 1998, with Bank providing guarantee, in lieu of bail, to obtain release of ship on December 2, 1998--Plaintiff succeeded at trial with Dubé J. granting judgment on February 20, 2001--F.C.A. upholding decision of Dubé J.--Initial failure of security, perfunctory manner in which Bank dealt with perceived deficiency, in face of payment order of Dubé J., forcing plaintiff to bring motion for payment--Incumbent upon anyone in business of offering contractual security in order to achieve release of vessel from arrest to be readily available to respond in event owner of ship unwilling, unable to make prompt payment when found liable--Guarantee given by Bank to be constructed in relation to factual matrix, circumstances in which it arose, with proper regard to commercial purpose of guarantee, taking into account anything affecting way in which language of document would have been understood by reasonable man-- Guarantee to secure plaintiff which had given up sound in rem security, not Federal Court of Canada, it ought to have moved with good grace, alacrity to make good under guarantee-- While substantial costs against Bank would be appropriate if were party, costs should not be awarded against Bank as non-party--As to costs against defendant shipowner, Bering Trawlers Ltd., as opposed to counsel, forced present motion by failing to deal with settlement of judgment in timely manner--Plaintiff having achieved purpose, payment of judgment, costs of $500 payable to plaintiff by Bering Trawlers Ltd., appropriate.