Neves v. Kristina Logos ( The )
T-1041-95
Morneau P.
18/12/96
7 pp.
Application by Crown for leave to intervene to request order for sale of fishing vessel-Vessel seized by Department of Fisheries and Oceans officers for alleged breach of Fisheries Act, regulations-Trial of master for fishery-related offences proceeded in Provincial Court of Newfoundland-Appeal of conviction pending; owner's arraignments postponed-Vessel under arrest of this Court since April 5, 1994, further warrant of arrest issued in present action May 23, 1995-Claims of $125,000, $512,750 respectively advanced against ship, owners-Department of Fisheries and Oceans incurring costs, expenses for care, preservation of vessel of over $500,000-Ongoing cost of maintenance $60,000 per year-Application allowed-(1) Court having jurisdiction to grant sale order-Although ship seized pursuant to statutory powers contained in Act, vessel under arrest by virtue of warrants of arrest issued under authority of this Court-Ship under custody of this Court, not Supreme Court of Newfoundland-Crown's motion presented pursuant to Federal Court Rules, RR. 1007, 1010-Present application must be resolved under Rules by virtue of Court's authority, jurisdiction over arrested vessel-R. 1007 permitting Court, before judgment, to order sale of property under arrest-(2) Crown having necessary interest to intervene pursuant to R. 1010-R. 1010 permitting person who claims interest in property under arrest against which action in rem brought to apply for leave to intervene-Expenses engaged for benefit of ship, common venture, providing interest in ship-(3) Appropriate case for Court to grant order of sale-Costs, expenses continuing to accrue-Unlikely vessel will be released from seizure, arrest in foreseeable future-Ship's market value decreasing since arrest-Failure to maintain classification certificate will reduce value further-Case meeting test in R. 1007(3) (permitting Court to order sale of property if deteriorating in value) and other criteria laid down by cases considering sale pendente lite-Owners neither maintaining insurance, either for hull, machinery or for third party liability risks, nor offering to contribute to Crown's costs, raise bail, post security-Application not fettering Supreme Court of Newfoundland's authority to deal with trials of owners-Federal Court Rules, C.R.C., c. 663, RR. 1007, 1010.