Canadian Imperial Bank of Commerce v The owners of the ships "Le Chêne No 1" and Ors - Federal Ct (Trial Div)(Snider J) - 14 July 2003

Admiralty practice - Priorities - Whether seaman's claim for severance pay and damages for wrongful dismissal had priority over mortgagee

The principal issue in this case was whether, as against the proceeds of sale of four vessels, the vessels' mortgagee had priority over a claim by a chief engineer employed by the company which owned the vessels for severance pay or damages for wrongful dismissal. The chief engineer asserted that he had a maritime lien which conferred priority over the mortgagee's claim. His contract of employment did not relate to services on a particular ship, although he was primarily assigned to the vessel Le Chêne No 1.