Atlantic Yacht & Ship Inc v Sovereign Yachts (Canada) Inc and Anr (The "Status Quo") - Federal Ct (Trial Div)(Hargrave P) - 8 August 2003

Admiralty jurisdiction - Personal service contract between marketing agent and shipbuilder - Shipbuilder entering into contract with buyer introduced by marketing agent - Shipbuilder in breach of contract with marketing agent - Whether marketing agent entitled to arrest vessel subject of shipbuilding contract with buyer

The plaintiff entered into a marketing agreement with the first defendant shipbuilder ("Sovereign") whereby the plaintiff would provide marketing and brokering services for Sovereign at a commission of 5% of the price of vessels for which the plaintiff found a buyer. The plaintiff subsequently introduced to Sovereign a person interested in buying a 138-foot yacht to be built by Sovereign, now called Status Quo, the second defendant. Sovereign entered into a construction agreement with the buyer, and at the same time, the plaintiff and Sovereign entered into a commission agreement for brokerage whereby, as progress payments were made by the buyer to Sovereign, Sovereign would pay 5% to the plaintiff. Sovereign made substantial commission payments to the plaintiff but then ran into financial difficulties and ceased to pay the 5% commission. The plaintiff brought the present proceedings against Sovereign in personam and against Status Quo in rem.