Lakeland Bank v. Never E Nuff (Ship)

Lakeland Bank v. Never E Nuff (Ship)

The Court held the Bank possessed an enforceable ship mortgage effective in rem against the vessel "Never E Nuff" and maintained the in rem action for the converted Canadian amounts and prejudgment interest; the personal actions against McMahon (for lack of service/res judicata) and against St-Germain (no pleaded basis for personal liability as an innocent purchaser) were dismissed; the Bank must return non-accessory seized items and may seek a marshal's sale with appraisal; costs and sale directions were reserved.

Citation
2016 FC 1096
Parties
Plaintiff/cross Defendant: Lakeland Bank; Defendant (in Rem): The Ship "Never E Nuff", Hull No. DNAZ8012C303; Defendant/cross Plaintiff/plaintiff in Warranty: Patrick Salvail St-Germain; Defendant: Breen P. McMahon; Defendant in Warranty/third Party Defendant: Location Holand (1995) Ltée
Court
Federal Court
Jurisdiction
Canada
Judgment Date
30 September 2016
Procedural Posture
Admiralty Action in Rem and in Personam / Judgment and Reasons (final Judgment)
Outcome
Final judgment: action against McMahon dismissed without costs; action against Patrick Salvail St-Germain dismissed (with costs to be addressed); counterclaim dismissed; third-party claim against Location Holand dismissed; in rem action against the ship maintained and judgment entered in favour of the plaintiff in...
Legal Topics
Ship Mortgage Enforcement, In Rem Arrest and Sale, Bona Fide Purchaser Protection, Choice of Law and Proof of Foreign Law, Limitation Periods, Wrongful Arrest and Return of Seized Chattels, Costs
Source Language
English
Admiralty/maritime Law Conflict of Laws Civil Procedure Property Law/security Interests Enforcement of Foreign Judgments Ship Mortgage Enforcement In Rem Arrest and Sale Bona Fide Purchaser Protection +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 6 Authorities cited 34 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Lakeland Bank

Plaintiff/cross Defendant

The Ship "Never E Nuff", Hull No. DNAZ8012C303

Defendant (in Rem)

Patrick Salvail St-Germain

Defendant/cross Plaintiff/plaintiff in Warranty

Breen P. McMahon

Defendant

Location Holand (1995) Ltée

Defendant in Warranty/third Party Defendant

Procedural Posture

Admiralty Action in Rem and in Personam / Judgment and Reasons (final Judgment)

Legal Issues

  1. 1 Whether a US-registered first preferred ship mortgage is enforceable in rem in Canada against the vessel found in Canada
  2. 2 Whether the purchaser/owner (St-Germain) is personally liable for the US debtor's obligation as an innocent purchaser for value without notice
  3. 3 Whether Quebec registration requirements displace federal/common law maritime principles and render the foreign mortgage inopposable

Ratio Decidendi

The Court held the Bank possessed an enforceable ship mortgage effective in rem against the vessel "Never E Nuff" and maintained the in rem action for the converted Canadian amounts and prejudgment interest; the personal actions against McMahon (for lack of service/res judicata) and against St-Germain (no pleaded basis for personal liability as an innocent purchaser) were dismissed; the Bank must return non-accessory seized items and may seek a marshal's sale with appraisal; costs and sale directions were reserved.

Court Disposition

Final judgment: action against McMahon dismissed without costs; action against Patrick Salvail St-Germain dismissed (with costs to be addressed); counterclaim dismissed; third-party claim against Location Holand dismissed; in rem action against the ship maintained and judgment entered in favour of the plaintiff in...

Orders

  • The action against Breen P. McMahon is dismissed, without costs.
  • The action against Patrick Salvail St-Germain is dismissed, with costs to be addressed.