Royal Bank of Scotland v The “Kimisis III” - Federal Ct (Trial Div)(Hargrave P) - 8 February 1999

Admiralty practice - Mortgagee not in possession planning to apply for Court ordered sale of ship - Whether cargo should be removed from ship at cargo owner’s expense to facilitate sale

This was a motion by a fleet mortgagee of the vessel Kimisis III for an order that Noga Commodities (Canada) Inc (“Noga”), who had filed a caveat against the release of the Kimisis III and who was the owner of a cargo of 37,663 metric tonnes of wheat recently loaded aboard the ship, be required to remove the cargo at Noga’s expense so that the ship might be offered for sale. The mortgagee had not gone into possession of the ship but planned shortly to apply for a Court ordered sale. The mortgagee brought the motion because it took the view that a light ship, as opposed to one loaded with grain, would be easier to sell and would bring a better price.