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Textainer Equipment Management B.V. v. Baltic Shipping Co.

T-1995-94

Muldoon J.

29/8/94

9 pp.

Motion for order under R. 419 striking in rem portions of plaintiff's claim and setting aside warrant for arrest on ground pleadings disclosed no reasonable cause of action in rem -- Plaintiff Textainer leasing to defendant Baltic Shipping Co. refrigerated containers under two leases entered into on August 1 and November 1, 1990 -- Baltic defaulting leases prior to April 15, 1994 -- Textainer giving Baltic formal notice of default -- Lease agreements according plaintiff lien upon all vessels in Baltic's container fleet and pending freight to cover outstanding liabilities -- Scope of Canadian maritime liens not closed category -- Court ought ex debito justiciae hold parties to rights and responsibilities created by agreements -- Federal Court Act, s. 22 investing Court with wider jurisdiction than that accorded in U.K. -- Federal Court of Canada in admiralty and maritime law role exercising equitable as well as legal jurisdiction -- Equity imposing on Baltic obligation to pay rent, arrears and actual -- Equity looking to intent rather than form -- Baltic not coming into Court with clean hands as in default both as to arrears of rent and actual rent -- Motion dismissed -- Federal Court Rules, C.R.C., c. 663, R. 419 -- Federal Court Act, R.S.C., 1985, c. F-7, s. 22.

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