Nanisivik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al., (1994) 167 N.R. 294 (FCA)

JudgeMahoney, MacGuigan and Linden, JJ.A.
CourtFederal Court of Appeal (Canada)
Case DateFebruary 10, 1994
JurisdictionCanada (Federal)
Citations(1994), 167 N.R. 294 (FCA)

Nanisivik Mines Ltd. v. FCRS Shipping (1994), 167 N.R. 294 (FCA)

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

....................

Nanisivik Mines Ltd. and Zinc Corporation of America (plaintiffs/appellants) v. Canarctic Shipping Company Limited (defendant/respondent) and F.C.R.S. Shipping Ltd., Finnlines O.Y.A/B, Finnlines Group O.Y.A/B, F.G. Shipping O.Y.A./B, Matti J. Pulli, Kari K.J. Lautimies, Jouni Kalvi and John Doe (defendants)

(A-68-93)

Indexed As: Nanisivik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al.

Federal Court of Appeal

Mahoney, MacGuigan and Linden, JJ.A.

February 10, 1994.

Summary:

Nanisivik chartered a ship to deliver a cargo of ore to Zinc Corp. The ship sank and the cargo was lost. Nanisivik and Zinc Corp. sued the party the ship was chartered from (Canarctic) et al. in both contract and tort. A claim in tort was made against cer­tain officers of the crew for whom the car­riers were vicariously liable. Canarctic applied for an order refer­ring the parties to arbitra­tion. In the alterna­tive, Canarctic applied for leave to file a condi­tional appearance in order that it could object to the jurisdiction of the court and for an order staying the proceedings to allow such objec­tion to be raised and deter­mined.

The Federal Court of Canada, Trial Divi­sion, in a decision reported 59 F.T.R. 272, referred the matter to arbitration and stayed the proceedings against Canarctic pending the disposition of the arbitration. Nanisivik and Zinc Corp. appealed.

The Federal Court of Appeal allowed the appeal in part. The court upheld the refer­ence of Nanisivik's claim against Canarctic to arbitration and the stay of proceedings. The court held that the motions judge erred in referring Zinc Corp.'s action to arbitration, but the court upheld the stay of proceedings pending arbitration of the Nanisivik action.

Arbitration - Topic 2504

Stay of proceedings - Arbitration clause - Enforcement of - Nanisivik executed a charterparty with Canarctic for the ship­ment of ore - The charter­party required that dis­putes be resolved by arbitration - Nanisivik and Zinc Corp. sued Canarctic, inter alia, in both contract and tort when the ship sank and the cargo was lost - Canarctic applied for an order refer­ring the parties to arbi­tra­tion - The Feder­al Court of Appeal held that, under article 8 of the Commercial Arbitration Code, it was required to refer the matter to arbitra­tion provided the arbitration agreement was in writing and not null and void, inoperat­ive or incapable of performance - The court held that once a reference to arbitra­tion was made, there was no residual discretion in the court to refuse a stay of proceedings - See para­graphs 6 to 15.

Arbitration - Topic 2504

Stay of proceedings - Arbitration clause - Enforcement of - Canarctic and Nanisivik entered a charterparty which included an arbitration clause - The bill of lading between Nanisivik and Zinc Corp. incor­porated the terms of the charterparty - Zinc Corp. was not a party to the charter­party - The motions judge referred Zinc Corp.'s claim to arbitration and stayed proceedings by Zinc Corp. against Can­arctic - The Federal Court of Appeal held that the arbitration clause in the charterparty did not bind the parties to the bill of lading - The wording used in the bill of lading only incorporated those provisions of the charterparty that were germane to the shipment, carriage and delivery of the cargo - See paragraphs 16 to 24.

Practice - Topic 5277

Trials - General - Stay of proceedings - When available - [See first Arbi­tration - Topic 2504 ].

Shipping and Navigation - Topic 1888

Carriage of goods - Charterparties - Arbi­tration clauses - [See first Arbitration - Topic 2504 ].

Shipping and Navigation - Topic 1941

Carriage of goods - Bills of lading - Canarctic and Nanisivik entered a charter­party which included an arbitration clause - The bill of lading between Nanisivik and Zinc Corp. incorporated the terms of the charterparty - The Federal Court of Appeal stated that a provision of a bill of lading that incorporates generally the terms of a charterparty without specific reference to the arbitration clause did not bind the parties to the bill of lading to arbitration - The parties would be bound if the bill of lading specifically incorporated the arbi­tration clause or the arbitration clause in the charterparty expressly provided that it applied to bills of lading issued pursuant to it which had a general incorporation pro­vision - See paragraphs 18 to 19.

Shipping and Navigation - Topic 1941

Carriage of goods - Bills of lading - [See second Arbitration - Topic 2504 ].

Cases Noticed:

Kaverit Steel & Crane Ltd. et al. v. Kone Corp. et al. (1992), 120 A.R. 346; 8 W.A.C. 346; 40 C.P.R.(2d) 161 (C.A.), leave to appeal refused, [1992] 2 S.C.R. vii; 144 N.R. 242; 141 A.R. 314, refd to. [para. 7].

Ship Sea Pearl v. Seven Seas Dry Cargo Shipping Corp., [1983] 2 F.C. 161; 43 N.R. 517 (F.C.A.), consd. [para. 9].

Navionics Inc. v. Flota Maritima Mexicana S.A. et al. (1989), 26 F.T.R. 148 (T.D.), refd to. [para. 10].

BC Navigation S.A. (Bankrupt) v. Canpotex Shipping Services Ltd. (1987), 16 F.T.R. 79 (T.D.), refd to. [para. 11].

Thomas & Co. v. Portsea Steamship, [1912] A.C. 1, refd to. [para. 17].

Ship Rena K., [1979] 1 All E.R. 397, folld. [para. 18].

Agro Co. of Canada v. Ship Regal Scout et al., [1984] 2 F.C. 851 (F.C.T.D.), folld. [para. 20].

Statutes Noticed:

Bills of Lading Act, R.S.C. 1985, c. B-5, sect. 2 [para. 17].

Commercial Arbitration Act, R.S.C. 1985 (2nd Supp.), c. 17, sect. 2, sect. 4(1), sect. 5(1), sect. 5(3) [para. 4].

Commercial Arbitration Code, art. 5, art. 7(1), art. 7(2), art. 8(1), art. 8(2), art. 9 [para. 4].

Federal Court Act, R.S.C. 1985, c. F-7, sect. 50(1)(a), sect. 50(1)(b) [para. 4].

International Commercial Arbitration Act, S.A. 1986, c. I-6.6, generally [para. 7].

Counsel:

George Strathy, for the appellants;

Martin Mason, for the respondents.

Solicitors of Record:

Fasken, Campbell & Godfrey, Toronto, Ontario, for the appellants;

Gowling, Strathy & Henderson, Ottawa, Ontario, for the respondent;

McMaster, Meighen, Montreal, Quebec, for the defendants.

This appeal was heard in Toronto, Ontario, on January 12, 1994, before Mahoney, MacGuigan and Linden, JJ.A., of the Federal Court of Appeal.

The decision of the court was delivered by Mahoney, J.A., on February 10, 1994.

To continue reading

Request your trial
18 practice notes
  • MacKinnon v. National Money Mart Co. et al., 2009 BCCA 103
    • Canada
    • British Columbia Court of Appeal (British Columbia)
    • 13 March 2009
    ...137; 370 W.A.C. 137; 265 D.L.R.(4th) 214 (C.A.), refd to. [para. 68]. Nanisivik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al. (1994), 167 N.R. 294; 113 D.L.R.(4th) 536 (F.C.A.), refd to. [para. 69]. Ezer v. Yorkton Securities Inc. et al. (2005), 207 B.C.A.C. 65; 341 W.A.C. 65; 2005 BCC......
  • Granville Shipping Co. v. Pegasus Lines Ltd. S.A. et al., (1996) 111 F.T.R. 189 (TD)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 25 January 1996
    ...v. Gillespie (1990), 75 O.R.(2d) 225 (Gen. Div.), refd to. [para. 8]. Nanisivik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al. (1994), 167 N.R. 294; 113 D.L.R.(4th) 536 (F.C.A.), refd to. [para. Ruhrkohle Handel Inter GmbH et al. v. Fednav Ltd. et al., [1992] 3 F.C. 98; 144 N.R. 70 (F.C......
  • Methanex New Zealand Ltd. v. Fontaine Navigation S.A. et al., (1998) 142 F.T.R. 81 (TD)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 20 October 1997
    ...Marine Insurance Co. (1997), 125 F.T.R. 20 (T.D.), refd to. [para. 17]. Nanisvik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al. (1994), 167 N.R. 294 (F.C.A.), refd to. [para. Heyman v. Darwins Ltd., [1942] 1 All E.R. 337 (H.L.), refd to. [para. 17]. Skagway Terminal Co. v. Ship Daphne (......
  • Dongnam Oil & Fats Co. v. Chemex Ltd. et al., (2004) 264 F.T.R. 264 (FC)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 18 March 2003
    ...3 F.C. 398; 254 N.R. 346 (F.C.A.), refd to. [para. 23]. Nanisivik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al., [1994] 2 F.C. 662; 167 N.R. 294 (F.C.A.), refd to. [para. The Rena K, [1978] 1 Lloyd's 545 (Q.B.), refd to. [para. 28]. Beattie et al. v. Canada (2001), 278 N.R. 158 (F.C.A.......
  • Request a trial to view additional results
18 cases
  • MacKinnon v. National Money Mart Co. et al., 2009 BCCA 103
    • Canada
    • British Columbia Court of Appeal (British Columbia)
    • 13 March 2009
    ...137; 370 W.A.C. 137; 265 D.L.R.(4th) 214 (C.A.), refd to. [para. 68]. Nanisivik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al. (1994), 167 N.R. 294; 113 D.L.R.(4th) 536 (F.C.A.), refd to. [para. 69]. Ezer v. Yorkton Securities Inc. et al. (2005), 207 B.C.A.C. 65; 341 W.A.C. 65; 2005 BCC......
  • Granville Shipping Co. v. Pegasus Lines Ltd. S.A. et al., (1996) 111 F.T.R. 189 (TD)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 25 January 1996
    ...v. Gillespie (1990), 75 O.R.(2d) 225 (Gen. Div.), refd to. [para. 8]. Nanisivik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al. (1994), 167 N.R. 294; 113 D.L.R.(4th) 536 (F.C.A.), refd to. [para. Ruhrkohle Handel Inter GmbH et al. v. Fednav Ltd. et al., [1992] 3 F.C. 98; 144 N.R. 70 (F.C......
  • Dongnam Oil & Fats Co. v. Chemex Ltd. et al., (2004) 264 F.T.R. 264 (FC)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 18 March 2003
    ...3 F.C. 398; 254 N.R. 346 (F.C.A.), refd to. [para. 23]. Nanisivik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al., [1994] 2 F.C. 662; 167 N.R. 294 (F.C.A.), refd to. [para. The Rena K, [1978] 1 Lloyd's 545 (Q.B.), refd to. [para. 28]. Beattie et al. v. Canada (2001), 278 N.R. 158 (F.C.A.......
  • Methanex New Zealand Ltd. v. Fontaine Navigation S.A. et al., (1998) 142 F.T.R. 81 (TD)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 20 October 1997
    ...Marine Insurance Co. (1997), 125 F.T.R. 20 (T.D.), refd to. [para. 17]. Nanisvik Mines Ltd. et al. v. F.C.R.S. Shipping Ltd. et al. (1994), 167 N.R. 294 (F.C.A.), refd to. [para. Heyman v. Darwins Ltd., [1942] 1 All E.R. 337 (H.L.), refd to. [para. 17]. Skagway Terminal Co. v. Ship Daphne (......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT