June 2004

Recent Cases

Atlantic Yacht & Ship Inc. v. "Status Quo" (The), [2003] FC 965, [2004] 1 F.C.R. D-6 (Fed. T.D.): The claimant entered into a brokerage agreement with a shipbuilder for finding new customers. The builder went bankrupt. The vessel subject to the agreement was arrested. Held: The arrest was lifted. The vessel owner was not a party to the contract between the broker and the shipbuilder.

1340232 Ontario Inc. v. St. Lawrence Seaway Management Corporation (2004), 2004 F.C. 209 (Fed. T.D.): The plaintiff commenced an action to recover for business losses resulting from the closing of a bridge on the Seaway. The bridge had been damaged when a ship collided with it. Held: The claim for pure economic loss was dismissed.

Elders Grain Co. v. "Ralph Misener" (The), [2003] FC 837, [2004] 1 F.C.R. D-5 (Fed. T.D.): A fire broke out in a cargo of alfalfa pellets. Held: There was spontaneous combustion of the pellets. The pellets were dangerous cargo. The shipowner was not liable for the damage to cargo. The cargo owner was liable for damages to the ship.

Mediterranean Shipping Company S.A. v. BPB Westroc Inc., [2003] FC 942, [2004] F.C.R. D-14 (Fed. T.D.): A consignee paid a freight forwarder for the ocean freight. The forwarder went bankrupt. Held: A shipper remains liable to a carrier unless it can present clear and unequivocal evidence that the carrier somehow released it from liability.