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Date: 19980527


Docket: T-245-98

MONTREAL, QUEBEC, THIS 27th DAY OF MAY 1998

PRESENT:      RICHARD MORNEAU, ESQ., PROTHONOTARY

BETWEEN:

     MEDITERRANEAN SHIPPING COMPANY S.A.

     and

     S/S STEAMSHIP CO. LTD.

     Plaintiffs

     AND

     CANADA TEXTILE INTERNATIONAL INC.

     Defendant

     REASONS FOR ORDER AND ORDER

RICHARD MORNEAU, ESQ., PROTHONOTARY:


[1]      On consent, this motion to strike by the Plaintiffs has been considered under Rule 369 of the Federal Court Rules, 1998 (the Rules).


[2]      I consider the present motion as one under Rule 221(1)(a) of the Rules. Under that rule, it is accepted that the allegations found in the Defence and Counterclaim filed by the Defendant must be taken as proven and that the Court will only strike pleadings in plain and obvious cases where the matter is beyond doubt.


[3]      In paragraph 9 of its Defence and Counterclaim, the Defendant asserts that the inordinate delay in delivering the goods constitutes a fundamental breach of the contract between the parties.


[4]      From my point of view, it is not plain and obvious that this allegation cannot constitute a valid exception to the rule that in Canadian maritime law there could be no defence of set-off against an action for freight.


[5]      Therefore, it is not beyond doubt that the Defence and Counterclaim of the Defendant, in whole or in part, does not disclose a reasonable defence, or a cause of action in the case of the Counterclaim.


[6]      Furthermore, I am not satisfied under the present circumstances that it is desirable that the Counterclaim be dealt with separately from the main action since I tend to believe that the evidence on the Counterclaim will to a certain extent duplicate that submitted in the defence of the main action.


[7]      Consequently, this motion is dismissed. Costs in the cause.

Richard Morneau

     Prothonotary

MONTREAL, QUEBEC

May 27, 1998

     FEDERAL COURT OF CANADA

     NAMES OF COUNSEL AND SOLICITORS OF RECORD

COURT NO.:

STYLE OF CAUSE:

T-245-98

MEDITERRANEAN SHIPPING COMPANY S.A.

and

S/S STEAMSHIP CO. LTD.

     Plaintiffs

AND

CANADA TEXTILE INTERNATIONAL INC.

     Defendant

WRITTEN MOTION EXAMINED IN MONTREAL WITHOUT PERSONAL APPEARANCE OF THE PARTIES

REASONS FOR ORDER BY RICHARD MORNEAU, ESQ., PROTHONOTARY

DATE OF REASONS FOR ORDER:May 27, 1998

WRITTEN OBSERVATIONS BY:

Mr. Trevor H. Bishop for the Plaintiffs

Mr. Grant H. English for the Defendant

SOLICITORS OF RECORD:

Mr. Trevor H. Bishop for the Plaintiffs

Brisset Bishop

Montreal, Quebec

Mr. Grant H. English for the Defendant

Belowus, Easton, English, Holmes

Windsor, Ontario

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