Fraser Shipyard and Industrial Centre Ltd. v. Atlantis Two ( The )
T-111-98
Hargrave P.
4/8/98
11 pp.
Motion by Lloyd's Register of Shipping (Lloyd's) for immediate priority for account for classification services to Atlantis Two-£21,797.66 owed to Lloyd's for surveys classification-Taking position would neither provide further classification services or certification, nor make records available to prospective purchasers, unless its claim, mere statutory right in rem, given preference as Sheriff's costs of sale, standing before all other claims, including crew wage and repatriation claims-Courts will from time to time authorize expenditures to safeguard interests of claimants, owners-Any expenditures must be of net benefit, but not necessarily to all parties-Court not ordering Lloyd's to open records-Suggestion Court ought to order Lloyd's to produce classification records under r. 233(1), rule dealing with production of documents from person not party to action-Test in such situation one of relevance to issue in action-Classification material herein relevant to sale of ship, but not now relevant to dispute between plaintiff as necessaries supplier and defendants interested in ship-To force production not taking into account Lloyd's could well cancel classification of vessel entirely-Lloyd's entitled to hold out for full payment, regardless of what that position might do to balance of marine community involved-Lloyd's submitting opening of records enhancing sale value of vessel-Acting Sheriff submitting unclassified ship nearly uninsurable, possible sale of ship without release of classification records for inspection will be totally frustrated, delay could compromise ship's value significantly given age, state of repair-Payment of classification society fees at conclusion of sale both sensible, workable practice-To have provided for priority under circumstances premature, improper particularly as Lloyd's coming to Court to collect debt through reliance on Court's process, but not coming with clean hands as prepared to frustrate sale completely-Lloyd's agreeing to make classification documents available to prospective purchasers on same basis as would in Court ordered sales, reserving right to claim priority for fees as sheriff's expense-Consistent with protocol described in Honshu Gloria, The, [1986] 2 Lloyd's Rep. 63 (Q.B. (Adm. Ct.))-Federal Court Rules, 1998, SOR/98-116, r. 233.