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                                                                                                                                            Date: 20020304

                                                                      Docket: T-1041-95

                                                                                                                Neutral citation: 2002 FCT 239

AN ACTION IN REM AGAINST THE SHIP KRISTINA LOGOS,

ULYBEL ENTERPRISES LIMITED, JOSE PRATAS, and THE

OWNERS, CHARTERERS AND OTHER INTERESTED IN THE

SHIP KRISTINA LOGOS

BETWEEN:

                                               MARIO NEVES AND CARLOS NEVES

                                                                                                                                                        Plaintiffs

                                                                                                                                                                       

                                                                                 and

                                                                                   

THE SHIP "KRISTINA LOGOS",

                                                  ULYBEL ENTERPRISES LIMITED,

                                                  JOSE PRATAS, and THE OWNERS,

                                       CHARTERERS AND OTHERS INTERESTED

                                                  IN THE SHIP "KRISTINA LOGOS"

                                                                                                                                                    Defendants

                                                                                 and

                                                        HER MAJESTY THE QUEEN

                                                                                                                                                     Intervenor

                                                                                                                                                                       

                                                  TAXATION OF COSTS - REASONS

MICHELLE LAMY, ASSESSMENT OFFICER

[1]                              On December 18, 1996, Her Majesty the Queen was granted permission to intervene in the present action and to proceed with the sale of the ship "Kristina Logos". Subsequently, numerous orders were rendered allowing costs to Her Majesty the Queen. The Crown filed two (2) bills in this matter. The assessment of these costs proceeded on February 15, 2002, by way of conference call between Montreal, Halifax and St. John's.


[2]                              The first bill is with respect to costs awarded by the Court in orders dated January 16, June 9 and December 15, 1997. These costs were not contested except for the number of units claimed for the assessment of costs under item 26 of Tariff B. Considering that two (2) bills were taxed at the same time and that an important issue was raised on the second one, I allow 6 units under this item. This bill is taxed in the amount of $5,119.95.

[3]                              The second bill filed by Her Majesty the Queen is arising from the Order of Mr. Justice MacKay dated September 20, 2001. This is the Order determining priorities to the claims against the proceed of the sale of the ship "Kristina Logos" which specifies that:

"...the Crown's claim to recover costs directly incurred for sale of the ship in a reasonable amount as the parties may agree, or failing agreement as may be taxed on initiative of the Crown by commencing the process for taxation..."

[4]                              The Crown submitted that the costs directly related to the sale of the ship, in the amount of $18,725.00, be assessed on a solicitor and client basis and not according to Tariff B. Counsel for the Crown based his arguments on the decision rendered by Mr. Justice MacKay on February 11, 2000, in Holt Cargo Systems Inc. v. Ship "Brussel" et al, Court file T-738-96, where solicitor's costs associated with the appraisement, advertisement and sale of the vessel were recoverable. Counsel submitted that the costs claimed in this file by the Crown are the same as those ordered by Mr. Justice MacKay in the "Brussel" case.

[5]                              Representations on behalf of the opposing parties are to the effect that if Mr. Justice MacKay had intended for the Crown to recover its costs on a solicitor and client basis in the case at hand, he would have expressly stated this as he did in the "Brussel".


[6]                              As mentioned at taxation, I am also of the opinion that costs can only be allowed as between party and party in the absence of a special direction to the contrary. Rule 400(6)(c) of the Federal Court Rules clearly affords the Court authority to order costs on a solicitor and client basis. My role as an Assessment Officer is to fix the amount of costs and not to determine their nature.

[7]                              Since the costs incurred by the Crown resulting from the sale of the ship "Kristina Logos" will be taxed according to the Tariff, the parties retained the pro-forma bill of costs prepared by the Plaintiffs with the addition of two claims under item 27. Considering the consent of parties, this bill is taxed in the amount of $10,296.01.

[8]                              A certificate in the amount of $15,415.96 is issued in this file.

                                                                                                                                                                                   MICHELLE LAMY

                                                                                                    ASSESSMENT OFFICER

MONTREAL, QUEBEC

March 4, 2002


                                                    FEDERAL COURT OF CANADA

                                                                 TRIAL DIVISION

                        NAMES OF COUNSEL AND SOLICITORS ON THE RECORD

COURT FILE NO.:                                                                               T-1041-95

STYLE OF CAUSE:

AN ACTION IN REM AGAINST THE SHIP KRISTINA LOGOS, ULYBEL ENTERPRISES LIMITED, JOSE PRATAS, and THE OWNERS, CHARTERERS AND OTHER INTERESTED IN THE SHIP KRISTINA LOGOS

BETWEEN:

                                               MARIO NEVES AND CARLOS NEVES

                                                                                                                                                        Plaintiffs

                                                                                 and

                                                                                   

THE SHIP "KRISTINA LOGOS",

                                                  ULYBEL ENTERPRISES LIMITED,


                                                  JOSE PRATAS, and THE OWNERS,

                                       CHARTERERS AND OTHERS INTERESTED

                                                  IN THE SHIP "KRISTINA LOGOS"

                                                                                                                                                    Defendants

                                                                                 and

                                                        HER MAJESTY THE QUEEN

                                                                                                                                                     Intervenor

                                                                                   

                                                                                                                                                                       

PLACE OF TAXATION:                                                               Montreal, Quebec

ASSESSMENT TOOK PLACE ON FEBRUARY 15, 2002 VIA CONFERENCE CALL

ASSESSMENT OF COSTS -

REASONS BY:                                                     MICHELLE LAMY, ASSESSMENT OFFICER

DATE OF REASONS:                                                                     MARCH 4, 2002

APPEARED:                                                                                                   

David G. Colford                                                                                  for the Intervenor

Richard F. Southcott                                                                             for the Plaintiffs

Thomas E. Hart                                                                         for Clearwater Fine Foods Inc.

SOLICITORS ON RECORD:


Stewart McKelvey Stirling Scales

Halifax, N.S.                                                                               for the Plaintiffs

Lewis, Sinnott, Shortall, Hurley

St. John's, NF                                                                             for Defendants Jose Pratas and Ulybel Enterprises Ltd.

Brisset, Bishop

Montreal, Quebec                                                                       for the Intervenor

McInnis, Cooper & Robertson

Halifax, N.S.                                                                               for Clearwater Fine Foods Inc.

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