Federal Court of Appeal Decision on Arrest of Sister Ships

Andrew Ottaway, B.A. (Hons.), LL.B.Wrongful Dismissal0 Comments

In Westshore Terminals Limited Partnership v. Leo Ocean, S.A, the Federal Court of Appeal considered among other things whether the appellants could arrest the respondents’ ship and its sister ship as well.

The offending ship had damaged the appellants’ port facilities while in port, causing an estimated $60 million in damages.   The appellants commenced an action and arrested the ship.  The appellants also insisted that they could arrest a sister ship of the offending ship to satisfy a judgment.

Justice Nadon considered the Federal Courts Act, which gives the Federal Court jurisdiction to seize and sell offending ships (s. 43(2)) and ships which are “owned by the beneficial owner” of the offending ship – i.e. sister ships (s. 43(8)).   Justice Nadon stated that the appellants, having arrested the offending ship (under s. 43(2)), were barred from seeking to arrest a sister ship (under s. 43(8)).

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About the Author
Andrew Ottaway, B.A. (Hons.), LL.B.

Andrew Ottaway, B.A. (Hons.), LL.B.

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