Marine Atlantic Inc. v. Blyth
T-1571-93
Nadon J.
26/11/93
13 pp.
Application to stay order granting Mareva injunction against corporate defendants -- Defendant Blyth & Company Travel Ltd. (BCTL) entering into joint venture agreement with plaintiff to provide environmentally-oriented cruise expeditions using M.V. "Northern Ranger" -- BCTL purchasing 3 inflatable boats (Zodiacs) leased to joint venture for use on expeditions -- Dispute arising between BCTL and plaintiff with respect to mutual obligations under joint venture agreement[cad 211]Plaintiff claiming damages against defendants for breach of joint venture agreement and negligent misrepresentation -- Counterclaim by defendants seeking damages against plaintiff, return of Zodiacs held by plaintiff -- Jerome A.C.J. ordering return of Zodiacs, granting plaintiff's application for Mareva injunction -- Jurisdiction in F.C.T.D. to grant stay of interlocutory order pending appeal of order to Court of Appeal -- Plaintiff seeking Mareva injunction must demonstrate strong prima facie case, not merely good arguable case -- Mareva injunction not to be used as means to obtain execution prior to judgment-Plaintiff must satisfy Court defendant removing assets in order to avoid future judgment -- Defendants herein seeking to remove assets from jurisdiction in order to fulfil business and commercial commitments -- No intention to make themselves judgment-proof-Defendants' case sufficiently strong to justify stay -- Defendants stating effect of granting Mareva injunction tantamount to preventing them from carrying on normal and ordinary business operations and may jeopardize ability to survive -- Mareva injunction will cause irreparable harm to defendants in short term-Plaintiff not to be placed in preferred position vis-à-vis defendants' other unsecured creditors -- Seeking Mareva injunction as security for claim -- Balance of convenience lying in favour of defendants -- Application allowed.