Federal Court Decisions

Decision Information

Decision Content

                                                               Date: 19980903


                                                            Docket: T-1270-97

MONTRÉAL, QUEBEC, THE 3RD DAY OF SEPTEMBER, 1998

Present:     Mr. RICHARD MORNEAU, PROTHONOTARY

Action in rem against the vessels M/V BONTEGRACHT and KIELGRACHT and in personam against the Owners and Charterers of the vessels M/V BONTEGRACHT and KIELGRACHT

Between:

                        ABITIBI-PRICE SALES CORPORATION

and

CORPORACION LA PRENSA S.A.

                                                                    Plaintiffs

                                      AND

C.V. SCHEEPV.ONDERNEMINEG "Sambeek"

and

CARPULP N.V. & SHIPPING CO. TRANSPULP

and

SPLIETHOFF'S BEVRACHTINGSKANTOOR B.V.

and

THE OWNERS AND CHARTERERS

OF THE VESSEL BONTEGRACHT

and

THE OWNERS AND CHARTERS OF

THE VESSEL KIELGRACHT

and

THE VESSEL BONTEGRACHT

and

THE VESSEL KIELGRACHT

Defendants

ORDER


            The plaintiffs shall have six (6) months from the date of this order in which to serve their statement of claim on the vessel BONTEGRACHT, with costs against the plaintiffs.



            In regard to the defendants' motion, the writ of attachment issued against the BONTEGRACHT on August 14, 1998 shall be set aside. In addition, the plaintiffs shall return to the defendants the letter of undertaking they obtained in the context of this litigation for the purposes of preventing the attachment of the vessel BONTEGRACHT. Finally, costs shall be ordered against the plaintiffs on this motion according to the maximum in column IV of Tariff B. The defendants' motion is otherwise dismissed.


Richard Morneau

Prothonotary


Certified true translation



Bernard Olivier



Date: 19980903


                                                                                                                             Docket: T-1270-97

Action in rem against the vessels M/V BONTEGRACHT and KIELGRACHT and in personam against the Owners and Charterers of the vessels M/V BONTEGRACHT and KIELGRACHT

Between:

                                          ABITIBI-PRICE SALES CORPORATION

and

CORPORACION LA PRENSA S.A.

                                                                                                                                             Plaintiffs

                                                                          AND

C.V. SCHEEPV.ONDERNEMINEG "Sambeek"

and

CARPULP N.V. & SHIPPING CO. TRANSPULP

and

SPLIETHOFF'S BEVRACHTINGSKANTOOR B.V.

and

THE OWNERS AND CHARTERERS

OF THE VESSEL BONTEGRACHT

and

THE OWNERS AND CHARTERS OF

THE VESSEL KIELGRACHT

and

THE VESSEL BONTEGRACHT

and

THE VESSEL KIELGRACHT

Defendants

REASONS FOR ORDER


Mr. RICHARD MORNEAU, PROTHONOTARY:


[1]         These two motions are interrelated.



[2]         The first motion, by the plaintiffs under Rule 8 of the Federal Court Rules, 1998 (the "Rules"), is to obtain an extension of the time in which to serve the statement of claim in rem against the vessel BONTEGRACHT.



[3]         The second motion, by the defendants C.V. Scheepv.Ondernemineg "Sambeek" and Spliethoff's Bevrachtingskantoor B.V. (the "defendants"), is effectively in opposition to this extension sought by the plaintiffs. The defendants are further asking that a letter of undertaking they gave the plaintiffs recently, effectively to prevent the seizure of the vessel BONTEGRACHT, be returned to them and that special costs be allowed them given the circumstances surrounding the supplying of this letter of undertaking.



The facts



[4]         The essential facts for the purpose of disposing of these motions may be summarized as follows.



[5]         The plaintiffs commenced their action on June 11, 1997. Under the rule then in force, they had one year from that date in which to serve their action on the vessel, that is, until June 11, 1998 (the relevant period). It appears that during the relevant period, the BONTEGRACHT was in Canadian waters only once, from August 6 to 13, 1997. The plaintiffs were unable to serve process at that time. On or about August 14, 1998, the plaintiffs or their solicitors realized that the BONTEGRACHT was again in Canadian waters. Although the relevant period had by that point expired, the plaintiffs had a writ of attachment issued against the BONTEGRACHT.



[6]         I conclude from the exchange of letters contained in the record that the plaintiffs' solicitors had brandished the spectre of seizing the ship in order to obtain a letter of undertaking from the defendants.



Analysis



[7]         From the evidence on the record, I am unable to criticize the methods adopted by the plaintiffs and their solicitors or the frequency with which such methods have been used and to find, as the defendants urge, that the plaintiffs failed, during the relevant period, to take a series of reasonable steps to attempt to serve their statement of claim on the BONTEGRACHT. On the contrary, my conclusion is a positive one in this regard. They shall therefore be allowed an extension of time.



[8]         In granting this extension, I do not think I am reviving a cause of action otherwise prescribed against the BONTEGRACHT and accordingly prejudicing the defendants. In my opinion, the filing of the statement of claim on June 11, 1997 interrupted this limitation period.



[9]         Furthermore, I do share the defendants' criticism of the plaintiffs for threatening in August 1998 to literally seize the BONTEGRACHT when, at the time, this vessel could not validly be seized by the plaintiffs in the context of this action since it was beyond the relevant time. In this regard, it will be necessary to set aside the writ of attachment issued August 14, 1998 and to order the plaintiffs to return to the defendants the letter of undertaking they obtained in the context of this litigation for the purposes of preventing the seizure of the vessel BONTEGRACHT.



[10]       Under Rule 410(2), the plaintiffs shall be ordered to pay the costs on their motion for an extension of time. In so far as the defendants' motion is concerned, it is appropriate, given the plaintiffs' actions in regard to the letter of undertaking, to order costs against the plaintiffs on this motion under the maximum in column IV of Tariff B.



[11]       An order shall be issued accordingly.


Richard Morneau

Prothonotary


MONTRÉAL, QUEBEC


September 3, 1998



Certified true translation



Bernard Olivier


Federal Court of Canada


Court file no.T-1270-97

BETWEEN

ABITIBI-PRICE SALES CORPORATION

and

CORPORACION LA PRENSA S.A.

                                                                        Plaintiffs

- and -

C.V. SCHEEPV.ONDERNEMINEG "Sambeek"

and

CARPULP N.V. & SHIPPING CO. TRANSPULP

and

SPLIETHOFF'S BEVRACHTINGSKANTOOR B.V. and

THE OWNERS AND CHARTERERS

OF THE VESSEL BONTEGRACHT and

THE OWNERS AND CHARTERS OF

THE VESSEL KIELGRACHT and

THE VESSEL BONTEGRACHT and

THE VESSEL KIELGRACHT

Defendants

REASONS FOR ORDER


FEDERAL COURT OF CANADA

NAMES OF COUNSEL AND SOLICITORS OF RECORD

FILE NO.        T-1270-97

STYLE: ABITIBI-PRICE SALES CORPORATION

and

CORPORACION LA PRENSA S.A.

                                                                                   Plaintiffs

AND

C.V. SCHEEPV.ONDERNEMINEG "Sambeek"

and

CARPULP N.V. & SHIPPING CO. TRANSPULP

and

SPLIETHOFF'S BEVRACHTINGSKANTOOR B.V. and

THE OWNERS AND CHARTERERS

OF THE VESSEL BONTEGRACHT and

THE OWNERS AND CHARTERS OF

THE VESSEL KIELGRACHT and

THE VESSEL BONTEGRACHT and

THE VESSEL KIELGRACHT

Defendants

PLACE OF HEARING:Montréal, Quebec

DATE OF HEARING:August 31, 1998

REASONS FOR ORDER OF RICHARD MORNEAU, PROTHONOTARY

DATED:September 3, 1998

APPEARANCES:

Francis Rouleau                                                             for the plaintiffs

Richard L. Desgagnésfor the defendants C.V. Scheepv.Ondernemineg "Sambeek" and Spliethoff's Bevrachtingskantoor B.V.

SOLICITORS OF RECORD:

Sproule, Castonguay, Pollack                                           for the plaintiffs

Francis Rouleau

Montréal, Quebec

Ogilvy Renault

Richard L. Desgagnés

Montréal, Quebec

for the defendants C.V. Scheepv.Ondernemineg "Sambeek" and Spliethoff's Bevrachtingskantoor B.V.

 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.