Avina v. Sea Senor (Ship)

Avina v. Sea Senor (Ship)

The court found the parties formed a company (Sea-Chariot) which legally owns the vessel, the transaction was an unsecured loan from Rodriguez to Avina except for temporary Aurcana shares delivered as collateral and later returned, the defendants did not possess a subsisting PPSA security interest in the vessel or Avina's Sea-Chariot shares and their purported foreclosure was ineffective, Rodriguez is entitled to judgment for the balance owing on the loan (amount to be accounted), and claims for unjust enrichment and punitive damages fail.

Citation
2016 BCSC 2488
Parties
Plaintiff / Defendant by Counterclaim: Oscar Avina; Defendant / Plaintiff by Counterclaim: Lenic M. Rodriguez; Defendant / Plaintiff by Counterclaim: Sea-Chariot Holdings Inc.; Defendant / Interested Parties: The Owners and All Others Interested in the Ship "Sea Senor"
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
14 December 2016
Procedural Posture
Admiralty Action (in Rem and in Personam) / Oral Reasons for Judgment (trial Decision)
Outcome
Judgment for defendant Lenic M. Rodriguez for the balance owing on the loan (amount to be determined by agreed accounting or further hearing); Sea-Chariot Holdings Inc. remains legal owner of the vessel; defendants' claim of foreclosure and any extinguishment of Avina's interest dismissed; unjust enrichment and...
Legal Topics
PPSA Security Interest, Foreclosure Under PPSA S.61, Shareholder Beneficial Ownership, Ship Arrest, Order for Sale, Unjust Enrichment, Punitive Damages, Accounting of Payments
Source Language
English
Admiralty Contract Property Secured Transactions Equity Civil Remedies Damages PPSA Security Interest +7 more

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Parties

Oscar Avina

Plaintiff / Defendant by Counterclaim

Lenic M. Rodriguez

Defendant / Plaintiff by Counterclaim

Sea-Chariot Holdings Inc.

Defendant / Plaintiff by Counterclaim

The Owners and All Others Interested in the Ship "Sea Senor"

Defendant / Interested Parties

Procedural Posture

Admiralty Action (in Rem and in Personam) / Oral Reasons for Judgment (trial Decision)

Legal Issues

  1. 1 Nature and terms of transaction between Avina, Rodriguez and Sea-Chariot
  2. 2 Whether 50,000 Aurcana shares were part payment or security
  3. 3 Whether the transaction created a security interest under the PPSA

Ratio Decidendi

The court found the parties formed a company (Sea-Chariot) which legally owns the vessel, the transaction was an unsecured loan from Rodriguez to Avina except for temporary Aurcana shares delivered as collateral and later returned, the defendants did not possess a subsisting PPSA security interest in the vessel or Avina's Sea-Chariot shares and their purported foreclosure was ineffective, Rodriguez is entitled to judgment for the balance owing on the loan (amount to be accounted), and claims for unjust enrichment and punitive damages fail.

Court Disposition

Judgment for defendant Lenic M. Rodriguez for the balance owing on the loan (amount to be determined by agreed accounting or further hearing); Sea-Chariot Holdings Inc. remains legal owner of the vessel; defendants' claim of foreclosure and any extinguishment of Avina's interest dismissed; unjust enrichment and...

Orders

  • Judgment in favour of Lenic M. Rodriguez for the balance owing on the loan; amount to be calculated by counsel or settled at further hearing
  • Declaration that Sea-Chariot Holdings Inc. is the legal owner of the vessel and that there is no subsisting PPSA security interest in the vessel extinguishing Avina's interest