Canadian Imperial Bank of Commerce v. Le Chêne NO 1 (The)

Canadian Imperial Bank of Commerce v. Le Chêne NO 1 (The)

Severance pay and wrongful dismissal damages claimed by MacKenzie arose from a company service agreement not specific to the Defendant ships and therefore were not referable to those ships; accordingly they do not create a maritime lien. Only conceded vacation pay and personal expenses are secured as maritime wages.

Citation
2003 FCT 292
Parties
Plaintiff/mortgagee: Canadian Imperial Bank of Commerce; Defendants: The Owners and All Other Interested Parties in the Ships LE CHENE No. 1, L'ORME No. 1, LE SAULE No. 1 and W.M. VACY ASH; Claimant/chief Engineer: Donald MacKenzie
Court
Federal Court
Jurisdiction
Canada
Judgment Date
10 March 2003
Procedural Posture
Admiralty/maritime Lien Priority Proceeding / Motion for Determination of Lien Priority and Distribution of Sale Proceeds
Outcome
Court held MacKenzie entitled to vacation pay and personal expenses as maritime wages secured by lien; severance pay and wrongful dismissal damages did not create a maritime lien and the balance of funds to be paid to CIBC; no order as to costs.
Legal Topics
Maritime Lien, Seamen's Wages, Wrongful Dismissal, Severance Pay, Priority of Claims, Mortgage Enforcement
Source Language
English
Maritime Law Employment Law Bankruptcy Admiralty Maritime Lien Seamen's Wages Wrongful Dismissal Severance Pay +2 more

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Parties

Canadian Imperial Bank of Commerce

Plaintiff/mortgagee

The Owners and All Other Interested Parties in the Ships LE CHENE No. 1, L'ORME No. 1, LE SAULE No. 1 and W.M. VACY ASH

Defendants

Donald MacKenzie

Claimant/chief Engineer

Procedural Posture

Admiralty/maritime Lien Priority Proceeding / Motion for Determination of Lien Priority and Distribution of Sale Proceeds

Legal Issues

  1. 1 Whether severance pay/damages for wrongful dismissal constitute a maritime lien
  2. 2 Whether bonuses claimed are contractually owing and lienable
  3. 3 Whether a company service agreement severs the link between wages and a particular ship

Ratio Decidendi

Severance pay and wrongful dismissal damages claimed by MacKenzie arose from a company service agreement not specific to the Defendant ships and therefore were not referable to those ships; accordingly they do not create a maritime lien. Only conceded vacation pay and personal expenses are secured as maritime wages.

Court Disposition

Court held MacKenzie entitled to vacation pay and personal expenses as maritime wages secured by lien; severance pay and wrongful dismissal damages did not create a maritime lien and the balance of funds to be paid to CIBC; no order as to costs.

Orders

  • Pay $10,198.40, representing vacation pay of $9,878.40 and personal expenses of $320.00, plus any accrued interest thereon, to Chief Engineer Donald MacKenzie.
  • Pay the balance of the monies paid into Court, plus accrued interest, to the Canadian Imperial Bank of Commerce.