The respondent commenced an in rem action in the Federal Court to enforce a maritime lien against a Belgian ship, which was subsequently arrested.
The shipowner was then adjudged bankrupt in Belgium, and the appellant trustees obtained an order from the Quebec Superior Court recognizing the bankruptcy.
Despite this, the Federal Court granted default judgment and ordered the ship's sale.
The trustees then obtained a Quebec Superior Court order directing the sale proceeds to be paid to them, conflicting with the Federal Court's orders.
The Supreme Court of Canada held that the Quebec Superior Court had no authority to enjoin the Federal Court from exercising its maritime jurisdiction or to dispose of a ship already captured by the Federal Court's process.
