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

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