Giorgio Berlingieri

The Plaintiff arrested the Defendant Ship in Canada on a claim for mortgage arrears.

The Defendants sought a stay of the in rem proceedings and the release of the ship without bail, relying on Italian insolvency proceedings, a Quebec CCAA recognition order, and an Italian COVID-19 decree suspending debt payments.

The Federal Court dismissed the motion, finding that the Defendants had attorned to the jurisdiction by filing a defence, that the Quebec recognition order expressly excluded the Federal Court proceedings, and that the discretionary test for a stay was not met as granting a stay would severely prejudice the Plaintiff's security.