Striebel v. Chairman (The)

Striebel v. Chairman (The)

The court found Sovereign's claim as presented overstated and unsupported by the contradictory and incomplete evidence (notably implausible labour-hour estimates), and special circumstances justified reducing the security; accordingly gross security was fixed at CAD 1,000,000 with CAD 160,000 specifically allocated to secure North West's claim, the net balance to secure Sovereign, to avoid oppressive arrest while protecting creditors' rights.

Citation
2002 FCT 925
Parties
Plaintiffs / Mortgagees in Possession: Mr. and Mrs. Stephen Striebel; Defendant Owner and Builder: Sovereign Yachts (Canada) Inc.; Defendant Unpaid Contractor / Caveator: North West Delta Yacht Services Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
30 August 2002
Procedural Posture
Admiralty Action in Rem and in Personam / Motion to Set Bail for Release of Arrested Vessel (bail Hearing) Amended Reasons for Order
Outcome
Gross security (bail) fixed at CAD 1,000,000 with CAD 160,000 deducted and allocated to secure North West Delta Yacht Services; net security to secure Sovereign accordingly; vessel release conditioned on provision of that security.
Legal Topics
Ship Arrest, Bail/security for Release, Caveat, Equitable Set Off, Mortgagee in Possession, Costs and Interest, Allocation of Security, In Rem and in Personam Claims
Source Language
English
Admiralty/maritime Law Contract Law Property (ship Arrest and Caveat) Civil Procedure Ship Arrest Bail/security for Release Caveat Equitable Set Off +4 more

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Parties

Mr. and Mrs. Stephen Striebel

Plaintiffs / Mortgagees in Possession

Sovereign Yachts (Canada) Inc.

Defendant Owner and Builder

North West Delta Yacht Services Inc.

Defendant Unpaid Contractor / Caveator

Procedural Posture

Admiralty Action in Rem and in Personam / Motion to Set Bail for Release of Arrested Vessel (bail Hearing) Amended Reasons for Order

Legal Issues

  1. 1 What amount of security (bail) is required to release the arrested vessel Chairman
  2. 2 What security must be allocated to secure the claim of an unpaid contractor (North West) who lodged a caveat
  3. 3 Whether Sovereign's claimed set-off is the sort of closely connected equitable set-off available to defeat or reduce a claim

Ratio Decidendi

The court found Sovereign's claim as presented overstated and unsupported by the contradictory and incomplete evidence (notably implausible labour-hour estimates), and special circumstances justified reducing the security; accordingly gross security was fixed at CAD 1,000,000 with CAD 160,000 specifically allocated to secure North West's claim, the net balance to secure Sovereign, to avoid oppressive arrest while protecting creditors' rights.

Court Disposition

Gross security (bail) fixed at CAD 1,000,000 with CAD 160,000 deducted and allocated to secure North West Delta Yacht Services; net security to secure Sovereign accordingly; vessel release conditioned on provision of that security.

Orders

  • Gross security/bail fixed at CAD 1,000,000 for release of the Chairman
  • CAD 160,000 of the gross security to be allocated to secure the claim of North West Delta Yacht Services Inc.