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Case 15: MAL 8
Canada: Federal Court of Canada, Trial Division (Joyal, J.)
17 January 1989
Navionics Inc. v. Flota Maritima Mexicana S.A. et al.
Published in English: 26 Federal Trial Reporter, 148
Article 8 is to be given a fairly strict interpretation and its imperative provision is an exceptional departure from the inherent jurisdiction of the Court to grant stays of proceedings. However, in this case, the court refused to decide if article 8 had been complied with and granted the stay based on its inherent jurisdiction.
A dispute arose between the parties concerning their obligations with respect to a standard-form charter party they had signed. Flota Maritima moved to stay the proceedings brought by Navionics, relying on article 8 of the Model Law as enacted by the Commercial Arbitration Act, Revised Statutes of Canada, 1985, c.C-34.6. The motion was adjourned and before it could be heard, Navionics filed its own motion seeking default judgment against the defendant. The defendant was subsequently granted two extensions in order to allow it to obtain an affidavit. After Flota Maritima was refused any further extension, it filed a statement of defence in order to avoid being held in default.
The court granted the stay of proceedings sought by Flota Maritima. The court relied on
section 50(1)(b) of the Federal Court Act, Revised Statutes of Canada, 1985, c F-7, in
granting the stay pursuant to its inherent jurisdiction. Article 8 is to be given quite a
strict interpretation.
This case is cited in Case 36.
Additional Information published in later CLOUT issue (on "4 November 1993"):
Commented on by Tetley in [1993] Lloyd's Maritime and Commercial Law Quarterly, 238.
Additional Information published in later CLOUT issue (on "9 February 2000"):
Abstract published in English: [1995] Model Arbitration Law Quarterly Reports, Vol. 1, issue 1, 101
Text of the court decision published in English: [1995] Model Arbitration Law Quarterly Reports, Vol. 1, issue 1, 106
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