Annacis Auto Terminals (1997) Ltd v The ‘Cali’ - Federal Ct (Trial Div)(Hargrave P) - 7 September 1999

Admiralty practice - Priorities - Court making final order determining that berthage costs should rank as equivalent to a sheriff’s expense and ordering sale of vessel - Whether Court should vary order in favour of mortgagee on basis that vessel remained at berth longer than contemplated at time of original order - Principles on which Court can vary a final order determining priorities

The plaintiff terminal operator brought in rem proceedings against the vessel Cali seeking $299,770 for outstanding moorage fees and an order for sale. The Court made an order for sale, and determined that future berthage costs should rank as equivalent to a sheriff’s expense. The vessel’s mortgagee subsequently brought a motion for an order allowing the sale of the vessel to a specified purchaser at US$235,000. As a term of the sale, the purchaser was to use best efforts to remove the vessel from the plaintiff’s berth within 45 days of the payment of the balance of the purchase price. That 45 day holdover was a term requested by the mortgagee in order to allow the purchaser some flexibility in arranging towage to breakers.