The Standard P&I Club says that Canada is one of the most favourable jurisdictions for ship arrests, because a ship arrest can be done within a few hours and at low cost, however, the release of arrest could be very expeditious.
In an article posted on its website, the Standard Club explains that the arrest procedure in Canada is simple. It is initiated by the filling of a Statement of Claim and an Affidavit to Lead Warrant, which set out the relevant facts pertaining to the claim and establish the in rem jurisdiction.
Once these documents have been filed into the Court record, a Warrant for Arrest is issued by the Court to the Sheriff. A ship arrest can therefore take a mere couple of hours after the initial contact with the handling lawyer, and depending on the location of the ship. The procedure is also relatively inexpensive, as the costs are comprised only of Court filing fees and legal fees.
Countersecurity is not required by the Federal Court for a ship arrest. However, if the claimant is a foreign entity without any assets in the jurisdiction, the defendant may seek to obtain an order for security for costs.
For the release of the ship, the Club highlights that the release will only become effective only once the Court issues the release from arrest documents, and once the payment of costs of the Sheriff’s fees have been settled.
Source: The Standard Club
