DP World (Canada) Inc. v. Seacube Container Leasing Ltd.

DP World (Canada) Inc. v. Seacube Container Leasing Ltd.

Because the plaintiff demonstrated entitlement to validate service and no defences were filed for the arrested containers, the court authorized the pre-judgment private sale of the specified defendant containers (excluding those owned by Seacube and Seaco) on the terms sought, directed that sale expenses rank first from proceeds and awarded costs to the plaintiff.

Citation
2017 FC 168
Parties
Plaintiff: DP World (Canada) Inc.; Defendant (in Rem): The CONTAINERS LISTED IN APPENDIX "A"; Defendant (in Rem): Owners and all Others Interested in the CONTAINERS LISTED IN APPENDIX "A"; Defendant (in Personam): Seacube Container Leasing Ltd.; Defendant (in Personam): Dong Fang International Asset Management Ltd.; Defendant (in Personam): Florens Asset Management Company Limited; Defendant (in Personam): Seaco Korea Ltd.; Defendant (in Personam): Textainer Group Holdings Limited; Defendant (in Personam): The Korean Development Bank; Defendant (in Personam): John Doe Ltd.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
7 February 2017
Procedural Posture
Admiralty Action in Rem and in Personam / Interlocutory Motion for Validation of Service, Authorization to Sell Seized Property and Costs
Outcome
Motion granted in part: sale authorized for specified defendant containers excluding those owned by Seacube and Seaco; costs awarded to plaintiff.
Legal Topics
Validation of Service, Sale of Arrested Property Before Judgment, Priority of Sale Expenses, Costs
Source Language
English
Admiralty and Maritime Law Civil Procedure Enforcement Property Validation of Service Sale of Arrested Property Before Judgment Priority of Sale Expenses Costs

Case Brief

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Parties

DP World (Canada) Inc.

Plaintiff

The CONTAINERS LISTED IN APPENDIX "A"

Defendant (in Rem)

Owners and all Others Interested in the CONTAINERS LISTED IN APPENDIX "A"

Defendant (in Rem)

Seacube Container Leasing Ltd.

Defendant (in Personam)

Dong Fang International Asset Management Ltd.

Defendant (in Personam)

Florens Asset Management Company Limited

Defendant (in Personam)

Seaco Korea Ltd.

Defendant (in Personam)

Textainer Group Holdings Limited

Defendant (in Personam)

The Korean Development Bank

Defendant (in Personam)

John Doe Ltd.

Defendant (in Personam)

Procedural Posture

Admiralty Action in Rem and in Personam / Interlocutory Motion for Validation of Service, Authorization to Sell Seized Property and Costs

Legal Issues

  1. 1 Whether service on the defendant containers should be validated under Rule 147
  2. 2 Whether the court should authorize sale without appraisal by private contract prior to judgment under Rule 490(1)(a)
  3. 3 Whether sale expenses should have priority from sale proceeds

Ratio Decidendi

Because the plaintiff demonstrated entitlement to validate service and no defences were filed for the arrested containers, the court authorized the pre-judgment private sale of the specified defendant containers (excluding those owned by Seacube and Seaco) on the terms sought, directed that sale expenses rank first from proceeds and awarded costs to the plaintiff.

Court Disposition

Motion granted in part: sale authorized for specified defendant containers excluding those owned by Seacube and Seaco; costs awarded to plaintiff.

Orders

  • Pursuant to Rule 147 and Rule 490(1)(a) the Defendant Containers listed in Appendix A (excluding those owned by Seacube Container Leasing Ltd and Seaco Korea Ltd) and owned or controlled by Dong Fang International Asset Management Ltd., Florens Asset Management Company Limited, Textainer Group Holdings Limited, The...
  • Sale expenses (amounts expended by DP World relating to the containers including storage and maintenance fees, and reasonable expenses of advertisement, costs, disbursements and other expenses necessary to give effect to the order) are to rank first in priority from the proceeds of sale and proceeds are to be...