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MARITIME LAW

Liens and Mortgages

Imperial Oil Ltd. v. Petromar Inc.

T-1492-97

MacKay J.

17/8/00

16 pp.

Motion for determination of question of law on basis of agreed statement of facts, agreed question of law--Whether Petromar Inc. has maritime lien on vessels M.V. Le Brave and M.V. A.G. Farquharson as result of supply to said vessels of marine lubricants--If defendants' claim for supply of marine lubricants governed by substantive law of United States, then maritime lien enforceable in Court by action in rem against vessels--If claim governed by Canadian substantive law, no maritime lien enforceable by action in rem against vessels--Petromar's claim governed by United States' substantive law--Claim for supply of maritime lubricants giving rise to maritime lien enforceable in Court by action in rem against vessels--Maritime lien arising under United States' statutory law in claim for necessaries supplied, repairs provided, in United States will be recognized, enforced in Court under Canadian maritime law--Lien enforceable in action in rem even if claim arising without direct authority, personal liability of owner of vessel --No contract between parties herein--Under Canada Shipping Act, s. 275, conflict of laws to be governed by law of port of ship's registration, in this case Toronto, so that Canadian law would be applicable--S. 275 not applicable to present issue as latter not related to interests of seamen--Present case raising issue of maritime law, distinct branch of law not dependent upon contract relationships between parties--Agreements for supply of necessaries most significant connecting factors for choice of law in relation to issue--Consistent with modern international commerce, fostering specialization in international commercial relations, presumably fostering cost savings and introducing substantial measure of certainty through specified choice of law provisions--Factors of registration of ships in Canada, ownership here, supply of necessaries in Canada not as significant for choice of law as plaintiff urged--Issue in question governed by substantive law of United States with which issue has closest, most substantial connection-- Question answered in the affirmative--Canada Shipping Act, R.S.C., 1985, c. S-9, s. 275.

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