Fraser Shipyard and Industrial Centre Ltd. v. Expedient Maritime Co.
T-111-98
Stinson T.O.
13/11/98
15 pp.
Bernard Jones, ship broker appointed acting Sheriff by order dated May 27, 1998 with authority for appraisal, sale of Atlantis Two-Order directing Sheriff to deposit proceeds of sale into court, produce bill of costs; costs of appraisal to be treated as Sheriff's costs payable out of proceeds of sale; setting Sheriff's commission at 1% of total price; granting to Sheriff, all interested parties liberty to apply-Vessel selling for US$1,100,000-Sheriff producing account by way of bill of costs, supplemental bill of costs-Pressing Registry, assessment officer for early settlement of account-Federal Court Rules, r. 490(5), (6) providing for assessment of Sheriff's accounts, including participation of any party interested in proceeds of sale-Proceeds held in trust accounts governed by strict regulations concerning access-Never open to assessment officer to settle accounts except further to formal notice to interested parties giving them reasonable opportunity to participate-Sheriff not giving notice of accounts although sale order not exempting him from requirement-Neither Sheriff nor any claimant providing list of interested parties contemplated by r. 490(6)-First bill of costs indicating further accounts to be produced-Initial account for 50 hours at $200 per hour for "Sheriff's time and costs"-Open to dispute whether sale order exempting Sheriff from operation of British Columbia Supreme Court Rules, Appendix C, Schedule 2, s. 5(b) settling hourly rate for sheriffs for arrest of ships-As of date first bill of costs filed, Sheriff not presenting any materials reassuring assessment officer no possibility of objections to any portion of account-Given regulations governing trust accounts, absence of application (which Registry itself could not make) by Sheriff or any claimant for directions, assessment officer deciding circulation of accounts should occur after full compliance with sale order-In absence of submissions clarifying hourly rate, no justification for putting interested parties to extra expense associated with circulation of multiple time frames addressing segments of accounts-Instead Registry directed to photocopy all of accounts, supporting materials, forward them to 20 interested parties contemplated by r. 490(6)-Given number of claimants potentially exchanging submissions, that no prior consents or waivers existed, r. 490(6), shorter time frame might have prejudiced claimants' rights relative to trust fund notwithstanding service providers pressing for settlement-Claimants filing objection to Sheriff's time at $200 per hour, disputed agency fee-Neither Sheriff nor any claimant applied for directions waiving full effect of r. 490(6)-In absence of consents, waivers, full timetable circulated-Certificate of assessment issued assessing, allowing at CDN$59,946,18, US$19,229, GB_4,060 costs of acting Sheriff; assessment of remaining CDN $11,000 disputed by claimants reserved pending expiry of last time limit for submissions-Sale order intended to fold expertise of ship broker into function of Sheriff, not to assign him dual functions-Bill of costs distinguishing roles of Sheriff, ship broker, in terms of compensation, by associating hours with former, commission with latter-Tariff A, s. 4 providing amount payable for services of Sheriff shall be amount permitted for similar services by tariff of superior court of province in which services rendered-No motion brought for relief-Bound by tariff to British Columbia Supreme Court Rules: 50 hours at $45 per hour plus 7% GST allowed for bill of costs-As to costs of preparation for this proceeding, acting Sheriff's situation similar to litigant filing bill of costs per s. 406(1) to initiate process of assessment of costs-Five hours for preparation of bill of costs, five hours for fielding questions from creditors/debtors allowed at $45 per hour plus 7% GST-Two hours for discussions with Registry concerning delays in settlement of bill of costs disallowed-$400 allowed for agency fees-Federal Court Rules, 1998, SOR/98-106, rr. 406, 490, Tariff A, s. 4-Rules of Court, B.C. Reg. 221/90, Appendix C, Schedule 2, s. 5(b) (as enacted by B.C. Reg. 534/95).