Neves and Anr v The Ship 'Kristina Logos' and Ors - Federal Ct (Trial Div)(MacKay J) - 20 September 2001

Admiralty practice - Priorities - Claims by beneficial owners of vessel, by vessel's mortgagee, and by Crown for forfeiture and fines

The registered owners of the vessel Kristina Logos were Ulybel Enterprises Ltd ('Ulybel'), the sole director of which was Mr Pratas. The plaintiffs, the Neves brothers, claimed to own a 49% beneficial interest in the vessel. The vessel was seized at sea by Canadian fisheries officers with its cargo of fish, pursuant to allegations of illegally fishing without a licence or appropriate evidence of vessel registration, as required under the Fisheries Act, RSC 1985. The ship was escorted to St John's, Newfoundland, where it was detained by the Crown as a seized vessel. Mr Pratas, Ulybel and the master of the vessel were charged with associated fisheries offences. The master was convicted, and as a result, an order of forfeiture was issued against the Kristina Logos. The master's conviction was subsequently overturned by the Newfoundland Court of Appeal, thereby returning the vessel to the status of seized property continuing in the possession of the Crown. The Crown then prosecuted Ulybel, which was convicted on four counts of allowing the Kristina Logos to fish illegally. The Newfoundland Supreme Court imposed fines totalling $120,000, and ordered that $50,000 from the proceeds of sale of the ship be forfeited to the Crown. That decision was appealed to the Newfoundland Court of Appeal, which dismissed the appeal, save that the order of forfeiture was set aside. The Crown appealed to the Supreme Court of Canada in respect of the disallowance of the forfeiture. That appeal had taken place. Judgment had been reserved and was still awaited.