Hodder Tugboat Co. Ltd. v. JJM Construction Ltd.

Court refused to strike the 08 Action outright but ordered a procedural restructuring to avoid multiplicity and conflicts: the 07 Action will be restructured so JJM is the plaintiff pursuing subrogated and uninsured claims against Pacific and Texada; the 08 Action remains Hodder pursuing subrogated and uninsured claims against JJM, Pacific and Texada; both actions will continue as specially-managed proceedings and be heard together but not consolidated; JJM in the 08 Action may issue third party notices to Pacific and Texada; motions to strike dismissed without costs upon performance of restructuring steps.

Citation: 2009 FC 161
Parties: Plaintiff / Defendant by Counterclaim: Hodder Tugboat Co. Ltd.; Defendant / Third Party / Co Plaintiff in Related Action T 1908 07: JJM Construction Ltd.; Defendant: Texada Quarrying Ltd.; Defendant / Plaintiff by Counterclaim / Third Party: Pacific Towing Services Ltd.; Owner and Interested Vessel / Defendant: The Ship "Pacific Mariner II"
Court: Federal Court
Jurisdiction: Canada
Judgment Date: 13 February 2009
Procedural Posture: Admiralty Action in Personam and in Rem / Pre Trial Motions to Strike Under Federal Courts Rules R.221 (motions Heard Feb 9, 2009; Reasons and Order Feb 13, 2009)
Outcome: Motions to strike by Texada and Pacific dismissed without costs conditional on restructuring steps being performed
Legal Topics: Subrogation, Multiplicity of Actions, Abuse of Process, Striking Pleadings, Maritime Negligence, Case Management
Source Language: English

Maritime Law Insurance Law Civil Procedure Subrogation Multiplicity of Actions Abuse of Process Striking Pleadings Maritime Negligence +1 more

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Full judgment text Legal principles 5 Authorities cited 9 Party arguments 2 Amounts and remedies 2

Parties

Hodder Tugboat Co. Ltd.

Plaintiff / Defendant by Counterclaim

JJM Construction Ltd.

Defendant / Third Party / Co Plaintiff in Related Action T 1908 07

Texada Quarrying Ltd.

Defendant

Pacific Towing Services Ltd.

Defendant / Plaintiff by Counterclaim / Third Party

The Ship "Pacific Mariner II"

Owner and Interested Vessel / Defendant

Procedural Posture

Admiralty Action in Personam and in Rem / Pre Trial Motions to Strike Under Federal Courts Rules R.221 (motions Heard Feb 9, 2009; Reasons and Order Feb 13, 2009)

Legal Issues

1 Whether the Statement of Claim in T-1656-08 should be struck as scandalous, frivolous or vexatious or an abuse of process under Rule 221
2 Whether an insured may pursue uninsured claims separately from a subrogated insurer and who controls litigation when insurer has paid indemnity
3 Whether multiple proceedings arising from the same cause of action should be permitted and what procedural remedy is appropriate

Ratio Decidendi

Court Disposition

Motions to strike by Texada and Pacific dismissed without costs conditional on restructuring steps being performed

Orders

Counsel for Hodder in T-1656-08 and counsel for the plaintiffs in T-1908-07 shall cooperate to restructure the actions so that T-1908-07 has JJM as plaintiff pursuing its subrogated and uninsured claims and the defendants remain Pacific and Texada, and T-1656-08 remains Hodder pursuing both subrogated and uninsured...
Both T-1908-07 and T-1656-08 shall continue as specially-managed proceedings