Archive for the ‘Marine & Maritime’ Category

Federal Court of Appeal Upholds Federal Court Decision Granting Anti-Suit Injunction for Release of Vessel from Second Arrest

Tuesday, August 16th, 2011

In a previous blog posting on the Heydary Hamilton PC Blog Release of Arrest of Ship in Belgium stayed pending Appeal to Canadian Federal Court of Appeal which commented on  the decision of the Federal Court of Appeal in Alpha Trading Monaco Sam v The Ship “Sarah Degagnes” et al 2010 FCA 209 to grant a stay  of execution from the order of the Federal Court (made on a request for an anti-suit interlocutory injunction) that the appellant cause the release of the vessel “Sarah Desgagnes” from conservatory arrest in Belgium, where it is being held to secure the appellant’s claim in proceedings in Italy against the vessel’s subtime charterer  for unpaid bunkering invoices.

The Federal Court of Appeal dismissed the appeal of the order of the Federal Court on the appellants anti-suit interlocutory injunction that the appellant cause the release of the vessel “Sarah Desgagnes” from conservatory arrest in Belgium.  The appeal decision is reported at  Alpha Trading Monaco Sam v The Ship “Sarah Degagnes” et al 2011 FCA 41. In the reasons delivered from the Bench by Nadon J.A. the court reasoned that they ought not to interfere with the decision of the Federal Court “Given that the arrest [of the ship in Montreal] the respondents undertook to submit themselves and their ship to the jurisdiction of the Federal Court and to provide security for the appellant’s claims, and given that the re-arrest of their ship by the appellant in Belgium on May 4, 2010, in the particular circumstances of the case, clearly constitutes an attempt on the part of the appellant to take unfair advantage of the respondents by forcing them to provide security against a third party…”

David Alderson LL.B, LL.M (Lond.)

Practicing in Ontario (Canada)

Admitted (but not now practicing) in New York State, England and Wales, and Bermuda

Practiced in Dubai, UAE

 

Brief informational summaries about commercial and other litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.

Home, Cottage and Recreational Property Litigation

Friday, July 22nd, 2011

For many people the most valuable asset they own is their home, cottage or other recreational property.

Heydary Hamilton PC can advise and represent homeowners, cottage owners and other property owners in connection with claims and disputes arising in connection with home, cottage or other residential or recreational property.

Whether such claim or dispute arises in connection with:

  • the design, construction, repair or demolition of property
  • damage to the property
  • fire, smoke, flood, mould or infestation
  • homeowners insurance claims
  • insurance coverage for third party claims
  • injuries occurring on the property, including slip and fall, dog bite and owner or family injuries sustained on the property
  • occupiers’ liability
  • warranty coverage
  • purchase and sale issues
  • alcohol liability and host issues
  • swimming pool claims
  • mortgage, foreclosure and other finance issues
  • easements and licenses
  • ownership disputes
  • partition and sale
  • condominium issues
  • maintenance fees, levies and the like
  • management and operation of the property
  • products liability
  • neighbours, other property owners or associations
  • utilities and suppliers of services
  • trespassers
  • use of the property
  • failure of insurers to defend owners
  • boundary disputes or adverse possession
  • restrictive covenants
  • leasing, sublet or assignment issues
  • tax assessment
  • valuations
  • timeshare issues
  • environmental issues
  • homeowner and cottage owner’s association issues
  • expropriation and eminent domain issues
  • dilapidation and demolition
  • wills and estates issues
  • disputes as to title
  • real estate agents or brokers

Heydary Hamilton PC can provide effective and efficient legal services in connection with home, cottage and recreational properties.

David Alderson, LL.B, LL.M 

Richard Hayles, B.A., J.D.

 

Brief informational summaries about commercial and other litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.

 

Federal Court Upheld Injunction Order to Remove Ship from Harbour

Tuesday, November 16th, 2010

The Federal Court in its judgment released on August 25, 2010, in SV “ACOR” (Vessel) upheld an injunction order requiring the applicant to remove his ship from the respondent’s harbour and dismissed the applicant’s motion to set aside the injunction order.

David Alderson, LL.B, LL.M (Lond.)

Masha Loftus, M.A., J.D


Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.


Federal Court: No Authority to Arrest Crown Ships

Thursday, November 4th, 2010

The Federal Court in its judgment released on September 1, 2010, in Canada v. Artificial Reef Society of Nova Scotia, 2010 FC 865 set aside a warrant of arrest due to a lack of jurisdiction to arrest a Crown ship.

The Artificial Reef Society of Nova Scotia (“Reef Society”) had an agreement with the Department of National Defence (“DND”) that if the Crown decided to scrap HMCS Fraser, a decommissioned Navy vessel, the Reef Society would be allowed to make a proposal. Later, the Crown decided to have the ship broken up but rejected the Reef Society’s proposal and made a contract with another company. The Reef Society commenced an action against the vessel (in rem) and others, and caused a warrant to be issued by the Federal Court for the arrest of the vessel.

The Federal Court reasoned that 1) “remedies against the Crown must be expressly granted by statutory grant; and that 2) “[t]here is no authority to arrest a Crown ship, whether or not that ship is actively engaged in government service or decommissioned awaiting disposal.”

David Alderson, LL.B, LL.M (Lond.)

Masha Loftus, M.A., J.D


Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.

Warsaw Convention Limitation Period Is No Hurdle in Air France Case

Tuesday, November 2nd, 2010

In another decision arising out of litigation over the August 2, 2005 Air France accident at Pearson International Airport, the Ontario Court of Appeal was called upon to interpret the limitation provision contained in article 29 of the Convention for the Unification of Certain Rules Relating to International Carriage by Air, 12 October 1929, 137 L.N.T.S. 11 (the “Warsaw Convention”).  The Warsaw Convention, which is implemented in Canada by the Carriage by Air Act, R.S. 1985, c. C – 26, governs liability for the international carriage of persons and goods by air.  Under Article 29 the Convention, “The right to damages shall be extinguished if action is not brought within two years, reckoned from the date of arrival at the destination….”


The plaintiffs sought damages from Air France and others for the destruction of documents that were being shipped on the Air France jet when it overran the runway during a thunderstorm and caught fire.  Their notice of action was issued within the two year limitation period.  The plaintiffs did not serve the claim on one of the defendants within the six month period for service provided under the Ontario Rules of Civil Procedure, however, so they had to move for an order extending the time for service.  After being served, the defendant brought a motion before the Master for reconsideration.  That motion was dismissed, and an appeal to the Divisional Court was also dismissed.

In the Court of Appeal, the defendant argued that the order granting an extension of time for service was improper because the statement of claim had expired due to the failure to effect service within the six months.  In common law jurisdictions, expiration of a limitation period does not extinguish the underlying claim; rather, it raises a procedural bar that prevents the plaintiff from proceeding with the claim.  The defendant argued that the two year limitation period provided by Article 29 of the Warsaw Convention was fundamentally different in character in that after two years, applying the language of Article 29, the right to damages is “extinguished”.  It follows therefore, that when the six-month period for service passed, the statement of claim expired, and there was nothing for the court to revive.

In the view of the Ontario Court of Appeal, however, once the claim has been issued within the two year limitation period, the requirements of Article 29 of the Warsaw Convention have been satisfied.  Since Article 28 the Convention provides that procedural matters are to be governed by the law of the court that is seized of the particular case, any subsequent procedural issues, including those involving time for service, are governed by the Ontario Rules of Civil Procedure. Case law interpreting those Rules has clearly established that the statement of claim remains extant after expiry of the time for service, and it can therefore be served if an order extending the time is granted.

Link: Mosregion Investments Corporation v. Ukraine International Airlines, 2010 ONCA 715

Richard Hayles, B.A., J.D.


Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.

SCC Upholds Commercial Activity Exception to State Immunity in Enforcement of UK Judgment in Canada

Tuesday, October 26th, 2010

Supreme Court of Canada (“SCC”) in its judgment released on October 21, 2010, in Kuwait Airways Corp. v. Iraq, 2010 SCC 40, allowed Kuwait Airways Corp. (“KAC”)’s appeal from the Quebec Court of Appeal’s decision dismissing KAC’s application to enforce a UK judgment against Iraq based on the ground of state immunity.

The action arises out of Iraq’s invasion of Kuwait and seizure of KAC’s aircraft. KAC succeeded in proceeding against the Iraqi Airways Company (“IAC”) for damages and then initiated an action against Iraq for the costs of that action on the grounds that Iraq “funded, supervised and controlled all the litigation”.

KAC then sought recognition and enforcement of the UK judgment in Canada.

In its reasons, SCC stated that the rule of state immunity and exceptions to this rule must be considered under Canadian law, but based on finding of facts by the UK.

SCC found that the said litigation in which Iraq intervened to defend IAC concerned the retention of KAC’s aircraft after seizure, was a commercial act as opposed to a sovereign act and thus the commercial activity exception provided in section 5 of Canada’s State Immunity Act, R.S.C. 1985, c. S-18 applies.

David Alderson, LL.B, LL.M (Lond.)

Masha Loftus, M.A., J.D


Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.

Parties in Air France Class Action Get Disclosure of Cockpit Voice Recorder

Tuesday, October 26th, 2010

On August 2, 2005 Air France flight AFR 358 overshot the runway while attempting to land at Pearson International Airport during a severe thunderstorm.  At a speed of about 80 knots, the Airbus A340 crashed in a ravine and burst into flames.  Fortunately, none of the nearly 300 passengers and 12 crew members was killed, but a number of people suffered serious injuries.  The aircraft itself was a total loss.

A class action was launched in behalf of the passengers, and Air France and its insurers brought a multimillion dollar lawsuit against the Greater Toronto Airports Authority, NAV Canada (the entity responsible for air traffic control), and the Attorney General of Canada (representing the Ministry of Transportation).

Although it was not a party to any of the litigation pertaining to the crash, the Transportation Safety Board of Canada (the “Board”) took possession of the aircraft’s Cockpit Voice Recorder (the “CVR”) during the course of its investigation into the incident.  The CVR contains a complete recording of the conversations between the pilots, as well as their communications with air traffic control, in the hours leading up to the crash.  Investigators with the Board interviewed the two pilots at length, and made use of the contents of the CVR to help the pilots refresh their memories and reconstruct the last two hours of the flight.

The Board investigators obtained the CVR under section 28 of the Canadian Transportation Accident Investigation and Safety Board Act, R.S.C. 1989, c. 3 (the “Act”), which provides that any onboard recording that relates to a transportation occurrence under investigation by the Board is to be released to a Board investigator who requests it.  Under section 28(2), however, an onboard recording is privileged.  No person, including an investigator who obtains access to the recording under section 28, can communicate a recording or permit the contents of it be communicated to anyone else.

Section 28(6) provides an exception to the privilege.  The CVR may be produced in court proceedings where the court concludes that in the circumstances of the case the public interest in the proper administration of justice outweighs the importance of the privilege.  NAV Canada moved under section 28(6) for production of the CVR.  The motion was opposed by the Board and the pilots’ unions, who took the position that the contents of the CVR should be suppressed in the interests of aviation safety and the personal privacy of the pilots concerned.

The judge who heard the motion concluded that in the circumstances of the case the interests of justice outweighed the importance of the privilege, and ordered the disclosure of the CVR to the parties in the litigation.  This order was upheld in a recent decision of the Ontario Court of Appeal.

The Board had published a detailed report of its investigation.  While the Act does not permit the Board to assign fault or determine liability, the report did suggest that certain acts and omissions of the pilots during the last two hours of the flight, and in particular during the last 30 minutes, may have contributed to the crash.  The report did not quote the pilots’ conversations, but it did summarize the substance of the conversations.

The motions judge listened to the recording and read the transcript in camera. As a result, he concluded that there was “no doubt whatsoever that the contents of the CVR are highly relevant, probative and reliable and that they are of incalculable value in the investigation of this accident.”  The Board and the pilots’ unions argued that disclosure of the CVR would diminish the trust pilots have in the confidentiality of the investigation process, thereby producing a “chilling effect” and limiting the information that pilots would provide in future investigations.

In delivering the unanimous opinion of the Court of Appeal, Mr. Justice Goudge noted that in balancing the importance of the CVR to the administration of justice against the importance of the statutory privilege, the motions judge exercised the type of discretion that should attract deference on appellate review.  The Court of Appeal rejected the appellants’ assertion that the motions judge applied the wrong legal test.  It was not necessary for the moving party to establish extraordinary circumstances in order to justify production: “What the court must find is that in the particular case, the public interest in the administration of justice outweighs the importance attached to the statutory privilege.

These are some of the factors that the court cited as weighing in favour of disclosure in the interests of justice:

(1)    This was important and substantial litigation with a class of some 300 individuals and damages claimed in the hundreds of millions of dollars;

(2)    There was concern over the reliability of the pilots’ evidence;

(3)    The pilots had already used the CVR to refresh their memories;

(4)    Absent the CVR evidence, there was a real risk that the parties and the trier of fact would not have access to the best and most reliable evidence concerning the central issues in the case.

On the other hand, the CVR did not contain personal communications or communications “of a sensational or disturbing nature”, and there were no disciplinary proceedings pending against the pilots.

Disclosure served the public interest in the administration of justice because the contents of the CVR were relevant, probative, and reliable, and therefore of great value in the investigation of the particular accident that was before the court.  Since the Board and the unions had failed to provide any evidentiary basis for the alleged chilling effect (such as evidence that previous orders for disclosure had caused pilots to be less cooperative in subsequent investigations), this allegation was no more than speculation.

The court also rejected the appellants’ argument that the moving party has to show that a miscarriage of justice would occur unless the contents of the CVR were produced in the action.  In the circumstances, the public interest in the administration justice outweighed the importance of the privilege, and the recording should be produced.

Link: Societe Air France v. NAV Canada, CanLII – 2010 ONCA 598 (CanLII)

Richard Hayles, B.A., J.D.


Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.

Indemnity Agreements May Subject Foreign Companies to the Jurisdiction of Ontario Courts

Tuesday, October 12th, 2010

The Court of Appeal recently held that an indemnity agreement that was voluntarily signed by a Mexican transport company was the most significant factor in determining whether Ontario Courts had jurisdiction to hear an action brought against the Mexican Company and an Ontario tour operator for negligence arising out of a bus crash that injured two Ontario residents that purchased the bus tickets in Ontario from an Ontario tour operator.

http://www.ontariocourts.on.ca/decisions/2010/october/2010ONCA0634.htm

Ruzbeh Hosseini, B.Sc., J.D., LL.B.


Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.

Release of Arrest of Ship in Belgium stayed pending Appeal to Canadian Federal Court of Appeal

Monday, September 27th, 2010

The appellant sought a stay of execution from the order of the Federal Court (made on a request for an anti-suit interlocutory injunction) that the appellant cause the release of the vessel “Sarah Desgagnes” from conservatory arrest in Belgium, where it is being held to secure the appellant’s claim in proceedings in Italy against the vessel’s subtime charterer  for unpaid bunkering invoices ..

The Federal Court had found that the appellant’s action was vexatious and oppressive because the ship had previously been released from arrest in Canada on an undertaking by the respondents to post bail.

The Federal Court of Appeal granted the stay on the appellant satisfying the thee-pronged test formulated in RJR-MacDonald Inc. v Canada (Attorney General), [1994] 1 S.C.R. 311: that there is a serious question to be decided on the appeal, refusing the stay is likely to cause irreparable harm to the appellant, and that the balance of convenience favours staying the order pending the disposition of the appeal.

The court noted that the law of Belgium appears to permit the arrest of a ship to secure a debt against a time-charterer in circumstances the law of Canada does not

The respondents’ argument that the appellant was already in breach of the Federal Court’s order to release the vessel “forthwith” was not accepted by the Federal Court of Appeal, which said that a judgment of the Federal Court “should not be interpreted, or regarded, as denying a party an effective opportunity to exercise its right of appeal to this Court”.

David Alderson, LL.B, LL.M (Lond.)

Citation: Alpha Trading Monaco Sam v The Ship “Sarah Degagnes” et al 2010 FCA 209


Brief informational summaries about commercial litigation matters in the courts of Ontario and other developments are periodically published on this website. They are intended to be a general comment or general discussion, not legal advice and should not be relied upon as legal advice. Should you require legal advice, please contact info@heydary.com or 416 972 9001.