DP World (Canada) Inc. v. Seacube Container Leasing Ltd.
- Citation
- 2017 FC 174
- Status
- Judgment
- Jurisdiction
- Canada
- Court
- Federal Court
- Decision
- 10 February 2017
- Posture
- Admiralty Action in Rem and in Personam / Interlocutory Motion for Pre Judgment Sale
- Language
- English
More details
- Court
- Federal Court
- Decision
- 10 February 2017
- Posture
- Admiralty Action in Rem and in Personam / Interlocutory Motion for Pre Judgment Sale
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court authorized DP World to sell the specified containers listed in Schedule 1 by private sale without advertising, as-is and free and clear of all liens and encumbrances under Canadian maritime law; authorized DP World to execute bills of sale effecting title transfer; ordered that expenses of sale rank first in priority against proceeds; and directed that proceeds be paid into trust (Bernard LLP, In Trust) for distribution by joint direction or further court order.
Court disposition
Motion granted: authorization for private sale of specified containers as set out in the order
Orders
- The Defendant containers listed in Schedule 1 owned by Seacube Container Leasing Ltd., Seaco Korea Ltd. and Seaco Global (UK) Ltd. are authorized to be sold by DP World without advertising and as-is, free and clear of liens and encumbrances under Canadian maritime law
- DP World is authorized to sign a bill of sale transferring ownership and title of the containers listed in Schedule 1 to the purchaser free and clear of liens and encumbrances
- Possession, risk and title pass to the purchaser on delivery by DP World of a signed bill of sale or as otherwise agreed
- Expenses of sale (amounts expended by DP World related to the containers, storage and maintenance fees, and reasonable sale expenses) shall rank first in priority from the proceeds of sale
- Proceeds of sale shall initially be paid to 'Bernard LLP, In Trust' to be distributed pursuant to joint direction of DP World, Seacube Container Leasing Ltd., Seaco Korea Ltd. and Seaco Global (UK) Ltd., or failing agreement, by further order of the court
02
Material facts
Parties
DP World (Canada) Inc.
PlaintiffSeacube Container Leasing Ltd.
Defendant/ownerDong Fang International Asset Management Ltd.
Defendant/ownerFlorens Asset Management Company Limited
Defendant/ownerSeaco Korea Ltd.
Defendant/ownerTextainer Group Holdings Limited
Defendant/ownerThe Korean Development Bank
Defendant/ownerJohn Doe Ltd.
Defendant/ownerSeaco Global (UK) Ltd.
Defendant/ownerAmounts and remedies
- Number of Containers Listed in Schedule1: 127
03
Procedural history
Posture
Admiralty Action in Rem and in Personam / Interlocutory Motion for Pre Judgment Sale
04
Questions and positions
Legal issues
- 01
Whether the court may authorize a private pre-judgment sale of arrested containers under the Federal Courts Rules
- 02
Whether such a sale can be ordered without advertising and without representations or warranties
- 03
Whether proceeds of sale can be paid into trust and distributed by joint direction or further order
- 04
Whether expenses of sale should rank first in priority against proceeds
- 05
Whether DP World may transfer title by bill of sale pre-judgment
Party arguments
- Applicant
- DP World moved under Rule 490(1)(a) of the Federal Courts Rules for authorization to sell the Defendant containers listed in Schedule 1 by private contract without advertising, as-is and free and clear of liens and encumbrances, to recover storage and related charges, and to have proceeds paid to cover those costs or to be held in trust pending direction.
- Respondent
- Counsel for Seacube Container Leasing Ltd., Seaco Korea Ltd. and Seaco Global (UK) Ltd. consented to the order. No opposing submissions by other named owners were recorded in the motion record; motion in respect of other owners was previously granted on Feb 7, 2017.
05
Court’s reasoning
Legal principles
- 01
Federal Courts Rules, Rule 490(1)(a) and admiralty practice
Court may order sale of arrested maritime property prior to judgment to preserve value and satisfy claims
- 02
Admiralty practice and the court's equitable powers
Expenses necessary to effect a sale may be given priority from proceeds of sale
- 03
Federal Court order and admiralty practice
Court may authorize transfer of title pre-judgment by execution of a bill of sale
06
Ratio, limits and disposition
Ratio decidendi
The court authorized DP World to sell the specified containers listed in Schedule 1 by private sale without advertising, as-is and free and clear of all liens and encumbrances under Canadian maritime law; authorized DP World to execute bills of sale effecting title transfer; ordered that expenses of sale rank first in priority against proceeds; and directed that proceeds be paid into trust (Bernard LLP, In Trust) for distribution by joint direction or further court order.
Obiter and limits
- DP World may seek court approval of any sale if it chooses although advance court approval is not required by this order
- Motion respecting other owners was previously granted on February 7, 2017
Court disposition
Motion granted: authorization for private sale of specified containers as set out in the order
- The Defendant containers listed in Schedule 1 owned by Seacube Container Leasing Ltd., Seaco Korea Ltd. and Seaco Global (UK) Ltd. are authorized to be sold by DP World without advertising and as-is, free and clear of liens and encumbrances under Canadian maritime law
- DP World is authorized to sign a bill of sale transferring ownership and title of the containers listed in Schedule 1 to the purchaser free and clear of liens and encumbrances
- Possession, risk and title pass to the purchaser on delivery by DP World of a signed bill of sale or as otherwise agreed
- Expenses of sale (amounts expended by DP World related to the containers, storage and maintenance fees, and reasonable sale expenses) shall rank first in priority from the proceeds of sale
- Proceeds of sale shall initially be paid to 'Bernard LLP, In Trust' to be distributed pursuant to joint direction of DP World, Seacube Container Leasing Ltd., Seaco Korea Ltd. and Seaco Global (UK) Ltd., or failing agreement, by further order of the court
Source and reliance status
Federal Court · 10 February 2017
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Federal Court
Judgment· 10 February 2017
DP World (Canada) Inc. v. Seacube Container Leasing Ltd. Court (s) Database Federal Court Decisions Date 2017-02-10 Neutral citation 2017 FC 174 File numbers T-2249-16 Decision Content Date: 20170210 Docket: T-2249-16 Citation: 2017 FC 174 Vancouver, British Columbia, February 10, 2017 PRESENT: The Honourable Mr. Justice Shore
ADMIRALTY ACTION IN REM AGAINST THE CONTAINERS LISTED IN APPENDIX “A”
AND IN PERSONAM BETWEEN: DP WORLD (CANADA) INC. Plaintiff and The CONTAINERS LISTED IN APPENDIX “A” and the Owners and all Others Interested in the CONTAINERS LISTED IN APPENDIX “A”, SEACUBE CONTAINER LEASING LTD., DONG FANG INTERNATIONAL ASSET MANAGEMENT LTD., FLORENS ASSET MANAGEMENT COMPANY LIMITED, SEACO KOREA LTD. TEXTAINER GROUP HOLDINGS LIMITED,
THE KOREAN DEVELOPMENT BANK and JOHN DOE LTD. Defendants
ORDER UPON MOTION dated January 4, 2017, on behalf of the Plaintiff, for, inter alia, an Order: 1. Pursuant to Rule 490(1)(a) of the Federal Courts Rules that the Defendant Containers be sold without appraisal by private contract and as more particularly described as follows before judgment is granted: (a) The Defendant Containers shall be sold by conduct of DP World without advertising, with all existing faults, without any allowance for deficiencies or errors of description whatsoever and without any legal or contractual representations or warranties whatsoever, but free and clear of all liens and encumbrances under Canadian Maritime Law; (b) Any sale of the Defendant Containers shall not require advance Court approval, but DP World may seek Court approval if it chooses to do so; (c) In the event of a sale, DP World be hereby authorized to sign a bill of sale transferring ownership and title of the Defendant Containers to the purchaser free and clear of any liens and encumbrances; (d) Possession, risk and title to the Defendant Containers shall pass to the purchaser on delivery by DP World of a signed bill of sale to the purchaser or as otherwise agreed between DP World and the purchaser; (e) The following shall be deemed to be expenses of sale, and shall rank first in priority from the proceeds of sale of the Defendant Containers over all other claims: i. amounts expended or
incurred by DP World that pertain directly to the Defendant Containers, including but not limited to any amounts expended or incurred by DP World for storage fees and any other maintenance fees; and, ii. all reasonable expenses of advertisement of the sale, costs, disbursement and other expenses necessary or inherent to giving effect to this Order; (f) Proceeds of the Sale shall be directed to be paid to DP World to cover the cost of recovering sums due from the Defendants and for storage fees and related charges for the Defendant Containers. AND UPON the Motion in respect of the Defendant Containers owned by Dong Fang International Asset Management Ltd, Florens Asset Management Company Limited, Textainer Group Holdings Limited, The Korean Development Bank and John Doe Ltd. being granted on Tuesday, February 7, 2017; AND UPON reading the motion record filed on behalf of the Plaintiff and upon the consent of counsel for the Plaintiff and counsel for Seacube Container Leasing Ltd., Seaco Korea Ltd. and Seaco Global (UK) Ltd. as owners of the Defendant Containers listed in Schedule 1 hereto; THIS COURT ORDERS that: 1. The Defendant Containers owned by Seacube Container Leasing Ltd., Seaco Korea Ltd. and Seaco Global (UK) Ltd. currently located at the Terminal operated by the Plaintiff in the Port of Vancouver as listed in Schedule “1” hereto shall be sold by DP World without
advertising, with all existing faults, without any allowance for deficiencies or errors of description whatsoever and without any legal or contractual representations or warranties whatsoever, but free and clear of all liens and encumbrances under Canadian Maritime Law; 2. DP World is hereby authorized to sign a bill of sale transferring ownership and title of the Defendant Containers listed in Schedule “1” to the purchaser free and clear of any liens and encumbrances; 3. Possession, risk and title to the Defendant Containers listed in Schedule “1” shall pass to the purchaser on delivery by DP World of a signed bill of sale to the purchaser or as otherwise agreed between DP World and the purchaser; 4. The following shall be deemed to be expenses of sale, and shall rank first in priority from the proceeds of sale of the Defendant Containers listed in Schedule “1” over all other claims: (a) amounts expended or incurred by DP World that pertain directly to the Defendant Containers, including but not limited to any amounts expended or incurred by DP World for storage fees and any other maintenance fees; and, (b) all reasonable expenses of advertisement of the sale, costs, disbursement and other expenses necessary or inherent to giving effect to this Order; 5. The proceeds of the sale of the Defendant Containers listed in Schedule “1” shall initially be paid to “Bernard LLP, In
Trust” and Bernard LLP shall thereafter distribute the proceeds of sale in accordance with a joint direction by DP World, Seacube Container Leasing Ltd., Seaco Korea Ltd. and Seaco Global (UK) Ltd. or, failing agreement by those parties, in accordance with a further order of this court. “Michel M.J. Shore” Judge Schedule 1: [blank] + [en blanc] Owner Container
Number 1. Seaco CXDU2206990 2. Seaco CXDU2316853 3. Seaco CXRU1616146 4. Seacube HJCU1337030 5. Seaco HJCU1341236 6. Seacube HJCU1356339 7. Seacube HJCU1357850 8. Seaco HJCU1425980 9. Seaco HJCU1429076 10. Seaco HJCU1505915 11. Seaco HJCU1508215 12. Seaco HJCU1508621 13. Seaco HJCU1514970 14. Seaco HJCU1516329 15. Seaco HJCU1521201 16. Seaco HJCU1527642 17. Seaco HJCU1532510 18. Seaco HJCU1536135 19. Seaco HJCU1540618 20. Seaco HJCU1544969 21. Seaco HJCU1550766 22. Seaco HJCU1590624 23. Seaco HJCU1591744 24. Seaco HJCU1915400 25. Seaco HJCU1934566 26. Seaco HJCU1939911 27. Seaco HJCU1939927 28. Seaco HJCU1951460 29. Seaco HJCU1954330 30. Seaco HJCU2102663 31. Seacube HJCU4074431 32. Seacube HJCU4076584 33. Seacube HJCU4078946 34. Seacube HJCU4089473 35. Seacube HJCU4098665 36. Seacube HJCU4116748 37. Seacube HJCU4120727 38. Seaco HJCU4273304 39. Seaco HJCU4273460 40. Seaco HJCU4281383 41. Seacube HJCU4363840 42. Seacube HJCU4373197 43. Seacube HJCU4380365 44. Seacube HJCU4385032 45. Seacube HJCU4388561 46. Seacube HJCU4391800 47. Seacube HJCU4392242 48. Seacube HJCU4401391 49. Seacube HJCU4408550 50. Seaco HJCU4423636 51. Seaco HJCU4424329 52. Seaco HJCU4426321 53. Seaco HJCU4914542 54. Seaco HJCU4919164 55. Seaco HJCU4919565 56. Seaco HJCU4926780 57. Seaco HJCU4928314 58. Seaco HJCU4937039 59. Seaco HJCU4941532 60. Seaco HJCU4964435 61. Seaco HJCU4978887 62. Seaco HJCU4985314 63. Seaco HJCU4988226 64. Seaco HJCU4990120 65. Seaco HJCU4991214 66. Seaco HJCU4991298 67. Seaco HJCU6096152 68. Seacube HJCU9014219 69. Seacube HJCU9015560 70. Seacube HJCU9018298 71. Seacube HJCU9019479 72. Seacube HJCU9020090 73. Seacube HJCU9020398 74. Seacube HJCU9021141 75. Seacube HJCU9021537 76. Seacube HJCU9025785 77. Seacube HJCU9026117 78. Seacube HJCU9028260 79. Seacube HJCU9028470 80. Seacube HJCU9029796 81. Seacube HJCU9032974 82. Seacube HJCU9036917 83. Seacube HJCU9037153 84. Seacube HJCU9038925 85. Seacube HJCU9040814 86. Seacube HJCU9040943 87. Seacube HJCU9041322 88. Seacube HJCU9045797 89. Seacube HJCU9050134 90. Seacube HJCU9050999 91. Seacube HJCU9051676 92. Seacube HJCU9054464 93. Seacube HJCU9057041 94. Seacube HJCU9058412 95. Seacube HJCU9061397 96. Seacube HJCU9062156 97. Seacube HJCU9063640 98. Seacube HJCU9064457 99. Seaco HJCU9900304 100. Seaco HJCU9900686 101. Seaco HJCU9901065 102. Seaco HJCU9901682 103. Seaco HJCU9901830 104. Seaco HJCU9902966 105. Seaco SEGU4963570 106. Seaco SEGU5141253 107. Seacube SENU4250032 108. Seacube SENU4253258 109. Seacube SENU4254697 110. Seacube SENU4255585 111. Seacube SENU4265557 112. Seacube SENU4270867 113. Seacube SENU4271312 114. Seacube SENU4277199 115. Seacube SENU4280150 116. Seacube SENU4281590 117. Seacube SENU4286380 118. Seacube SENU4292254 119. Seacube SENU4293055 120. Seacube SENU5004440 121. Seacube SENU5022989 122. Seacube SENU5023326 123. Seacube SENU5037253 124. Seacube SENU5037952 125. Seacube SENU5044139 126. Seacube SENU5065553 127. Seacube SENU5073672
Case-aware research
Ask AI about this case
The judgment and available research above are public. New questions open in a separate private conversation grounded in this case.