Inaminka Marine Services Limited v. Canada Fluorspar (NL) Inc.
2022 FC 1375
Federal Court, October 5, 2022
Facts: The defendant, Canada Fluorspar (NL) Inc. ("CFI"), operated a fluorspar mine in Newfoundland and Labrador and owned the barge H-404, which was used to support the loading of cargo vessels at its marine terminal. The plaintiff, Inaminka Marine Services Limited ("IMS"), commenced an action in the Federal Court seeking payment for consulting and design services allegedly provided in relation to the operation and movement of the barge. IMS arrested the barge as security for its claim. Eight days later, CFI was placed under creditor protection pursuant to proceedings under the Companies' Creditors Arrangement Act ("CCAA") in the Supreme Court of Newfoundland and Labrador. The CCAA proceedings included a stay of proceedings against CFI and a court-approved process for the sale of its assets. CFI subsequently moved to stay the Federal Court action and release the barge from arrest so that the claims could be addressed within the CCAA process.
Decision: The motion was granted. The Federal Court action was stayed, and the barge was released from arrest
Held: The Court held that a stay should be granted where another forum is clearly more appropriate for resolving the dispute. Applying principles of comity and cooperation between courts, it found that the ongoing CCAA proceedings were the appropriate forum for determining the plaintiff's claims, including its asserted maritime lien and related priority rights. As those issues could be addressed through the provincial court's insolvency and sale process, the stay was granted and the barge was released from arrest.
Held: The Court held that a stay should be granted where another forum is clearly more appropriate for resolving the dispute. Applying principles of comity and cooperation between courts, it found that the ongoing CCAA proceedings were the appropriate forum for determining the plaintiff's claims, including its asserted maritime lien and related priority rights. As those issues could be addressed through the provincial court's insolvency and sale process, the stay was granted and the barge was released from arrest.