MARITIME LAW |
Liens and Mortgages |
Finansbanken ASA v. GTS Katie (The)
T-2009-00
2002 FCT 74, Morneau P.
22/1/02
7 pp.
Whether Peter Hornick held lien for payment of crew's wages and could thus ask that his claim to proceeds of sale of ship GTS Katie be paid after costs of sheriff but in priority to claims of mortgagees, namely plaintiffs Finansbanken ASA and Lloyd Werft Bremerhaven--On July 28, 2000 president of company owning ship, Third Ocean, asked Hornick to let him have sum of US $40,000 to be used to pay crew's wages--In consideration for payment, Hornick would be subrogated to crew wage lien for amount 25% greater, namely US $50,000--Primary problem relating to Hornick's claim had to do with sufficiency of evidence presented in support of claim--Claim introduced by hearsay which itself referred to other hearsays--Master's letter of receipt cannot be regarded as serving to establish US law governed assignment or subrogation of true lien--Nevertheless, crew's consent essential evidence since statement by Hornick or Third Ocean did not suffice to establish two real parties to transaction clearly agreed US law applicable--Canadian law applicable-- rew wage lien could not be assigned or subrogated unless Court first gave consent--Such consent not obtained here--Hornick did not validly establish assignment or subrogation in crew's wages which could be set up against other interested creditors--Application dismissed.