Case information

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Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

Private international law - Applicable law - Maritime law - Liens and mortgages - Contracts - Choice of law clauses - Whether Canadian conflict of laws rules recognize a choice of law clause in a supply contract, the effect of which is to create a maritime lien - If conflict of laws principles dictate that an express or implied choice of law clause be given effect, whether U.S. maritime law under the Commercial Instruments and Maritime Liens Act has extraterritorial effect - How foreign law is proven when there are conflicting judicial decisions in the foreign court - Standard of appellate review for findings respecting foreign law - Whether a maritime claim for necessaries will be accorded the status of maritime lien, when created by way of recognition of a choice of law clause in a supply contract - Whether an equitable rearrangement of priority can be effected to prioritize the rights of a mortgagee over the rights of a supplier of necessaries as a holder of a maritime lien.

The Lanner, a ship, was sold in an admiralty action in rem. At issue is the priority of claims against the proceeds. The Applicants seek relief as mortgagees. The Respondents seek relief as unpaid suppliers of necessaries. Under Canadian law, priority is given to maritime liens, then mortgages, and then statutory rights in rem such as those of unpaid suppliers of necessaries. However, the Respondents claim priority under the Commercial Instruments and Maritime Liens Act, 46 U.S.C. 31342 (1994). They claim that this Act applies pursuant to choice of law clauses in their supply contracts and they have maritime liens.