Federal Business Development Bank v. The Winder 4135 and ors - Fed.Ct. Trial Div. (Walsh J.) - 11 April 1984

Sale of vessel by court order - whether lien conferred by statute has priority over mortgagee

Eiger Booming Ltd. owned the vessel Winder 4135 . A mortgage of $13,000 was granted on the vessel in favour of the plaintiff Federal Business Development Bank (“the Bank”). Some $8,300 of worker’s compensation assessments became due from Eiger Booming, as an employer, to the Worker’s Compensation Board of British Columbia (“the Board”). This money was not paid. As a result of legal action taken by the Board, a judgment was obtained in the County Court of Vancouver Island. The vessel was seized and sold for $11,000. This sum was paid to the Board.