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Case 393: MAL 9
Canada: Federal Court of Canada (Pinard J.)
December 23, 1999
Frontier International Shipping Corp. v. Tavros (The)
Original in English
Published in English: [2000] 2 F.C. 445, (1999) 179 F.T.R. 306, F.C.J. No. 1921, varying [2000] 2 F.C. 427
The plaintiff, Frontier, successfully sought a stay of proceedings against the defendant Tavros to pursue arbitration in New York. In that application, the defendant had sought, as interim protection, security for its claim in the New York arbitration or security for costs of the action in Federal Court. In granting the stay, however, the lower Court made an order for costs against Frontier, against which Frontier appealed.
On appeal, the Court agreed that the judge at first instance had erred in awarding costs as interim protection allowed under art. 9 of the MAL. It held that interim protection is "interim" in that it is something done pending final determination of the issues on the merits. It is protection, not payment. Here, the costs awarded were to be collected now, without any determination whatsoever on the merits. There was no opportunity to alter this award. There was nothing "interim" about the award, and it was not "protective" in nature - it was payment. The appeal was thus allowed and the order for costs overturned.
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