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C.P. Ships (Bermuda) Ltd. v. Panther Max (The)

T-104-02

2002 FCT 305, Morneau P.

21/3/02

14 pp.

Motion by defendants for portions of statement of claim in personam and in rem brought by plaintiff as charterer of ship Panther Max to be struck out on ground statement of claim disclosed no reasonable cause of action within Court's ratione materiae jurisdiction laid down in Federal Court Act, ss. 22(1), 43(2)--Alternatively, defendants asked affidavit requesting seizure be quashed on ground major discrepancies therein--These two challenges filed to quash seizure of ship ordered by Court on January 21, 2002--Court concluded that by affidavit plaintiff had made full and complete disclosure of situation in question--Parties agreed maximum amount owed by defendants under paragrah 10(a) of plaintiff's affidavit would be some US$94,568.91 for purposes of setting bail--Not clear and obvious agreement between plaintiff and Senator Lines on sale of space in ship could be seen as involving use of ship within meaning of Federal Court Act, s. 22(2)(i)--Court clearly cannot proceed to strike paragraph 10(b) of affidavit on ground not within Court's ratione materiae jurisdiction under Act, ss. 22(2)(i), 43(2)--For purposes of determining bail, amount claimed by plaintiff under this heading should be reduced by 30%--No reason to strike out paragraph 10(c) of affidavit for lack of ratione materiae jurisdiction--Plaintiff entitled to claim sum of US$507,487.50 for purposes of setting bail under this heading --Ship Panther Max, to be released from seizure on condition defendants provide bail equivalent to total of US$780,500.01 and 20% of this amount as coverage for interest and costs--Federal Court Act, R.S.C., 1985, c. F-7, s. 22 (as am. by S.C. 1996, c. 31, s. 82), 43 (as am. by S.C. 1990, c. 8, s. 12; 1996, c. 31, s. 83).

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