Alpha Trading Monaco Sam v. Sarah Desgagnés (Ship)

Alpha Trading Monaco Sam v. Sarah Desgagnés (Ship)

Because Alpha instituted proceedings in Canada, arrested the ship for all 11 invoices and accepted an undertaking to provide security for those claims, it was oppressive and vexatious for Alpha to withdraw ten invoices from the Canadian action and undertake to secure them by rearresting the ship in Belgium; the court therefore granted an anti-suit interlocutory injunction restraining Alpha from enforcing or pursuing those claims outside Canada and required owners to post the agreed additional bail of CDN$1,315,000.

Citation
2010 FC 695
Parties
Plaintiff; Defendant by Counterclaim: Alpha Trading Monaco SAM; Defendant (in Rem): The Ship Sarah Desgagnés; Defendant; Plaintiff by Counterclaim: Transport Desgagnés Inc.; Plaintiff by Counterclaim (disponent Owner): Petro-Nav Inc.; Defendant (time Charterer): Maritima Fluviale Di Navigazione SpA
Court
Federal Court
Jurisdiction
Canada
Judgment Date
24 June 2010
Procedural Posture
Admiralty Action (in Rem and in Personam) / Motion for Anti Suit Injunction (interlocutory)
Outcome
Anti-suit interlocutory injunction granted
Legal Topics
Anti Suit Injunction, Ship Arrest, Maritime Lien, Bail/security, Forum Shopping, Jurisdiction, Conservatory Seizure, Time Charter Obligations
Source Language
English
Admiralty/maritime Law Conflict of Laws Civil Procedure Enforcement/ship Arrest Anti Suit Injunction Ship Arrest Maritime Lien Bail/security +4 more

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Parties

Alpha Trading Monaco SAM

Plaintiff; Defendant by Counterclaim

The Ship Sarah Desgagnés

Defendant (in Rem)

Transport Desgagnés Inc.

Defendant; Plaintiff by Counterclaim

Petro-Nav Inc.

Plaintiff by Counterclaim (disponent Owner)

Maritima Fluviale Di Navigazione SpA

Defendant (time Charterer)

Procedural Posture

Admiralty Action (in Rem and in Personam) / Motion for Anti Suit Injunction (interlocutory)

Legal Issues

  1. 1 Whether arresting a ship in Canada, accepting an undertaking for security and thereafter re-arresting the ship in Belgium for related claims is oppressive and vexatious
  2. 2 Whether a party who arrests a ship and accepts security is bound to elect forum and restrained from pursuing parallel recovery elsewhere
  3. 3 Whether Canadian courts should grant an anti-suit injunction to prevent enforcement actions in another jurisdiction over claims already secured in Canada

Ratio Decidendi

Because Alpha instituted proceedings in Canada, arrested the ship for all 11 invoices and accepted an undertaking to provide security for those claims, it was oppressive and vexatious for Alpha to withdraw ten invoices from the Canadian action and undertake to secure them by rearresting the ship in Belgium; the court therefore granted an anti-suit interlocutory injunction restraining Alpha from enforcing or pursuing those claims outside Canada and required owners to post the agreed additional bail of CDN$1,315,000.

Court Disposition

Anti-suit interlocutory injunction granted

Orders

  • Alpha Trading Monaco SAM and its officers, directors, servants, employees, agents and entities acting under its control are ordered to forthwith cause the release of the ship Sarah Desgagnés from its conservatory arrest in Belgium
  • Alpha Trading Monaco SAM and related persons are restrained from rearresting, seizing or otherwise detaining the ship Sarah Desgagnés or any vessel under the same beneficial ownership in any jurisdiction other than this Court with respect to any of the bunker deliveries which are the subject of this action or...