Federal Courts Rules (SOR/98-106)

Regulations are current to 2015-11-16 and last amended on 2015-01-30. Previous Versions

Marginal note:Release at any time
  •  (1) On motion, the Court may, at any time, order the release of arrested property.

  • Marginal note:Release of ship

    (2) Where, pursuant to subsection 43(8) of the Act, a ship that is not the subject of an action has been arrested, any owner or other person interested in the ship may bring a motion to the Court for the release of the ship, and if it is found that the ship is not beneficially owned by the person who is the owner of the ship that is the subject of the action, the Court shall order its release without the taking of bail.

  • Marginal note:Release of ship without bail

    (3) Where on a motion under subsection (2) the Court is satisfied that the action in which the ship has been arrested is for a claim referred to in any of paragraphs 22(2)(a) to (c) of the Act, the Court may order the release of the ship without the taking of bail.

Marginal note:Release from arrest

 Property shall be released from arrest on service of a release on the sheriff and payment of all fees and costs of the sheriff in respect of the arrest or custody of the property.

Sale of Arrested Property

Marginal note:Disposition of arrested property
  •  (1) On motion, the Court may order, in respect of property under arrest, that

    • (a) the property be appraised and sold, or sold without appraisal, by public auction or private contract;

    • (b) the property be advertised for sale in accordance with such directions as may be set out in the order, which may include a direction that

      • (i) offers to purchase be under seal and addressed to the sheriff,

      • (ii) offers to purchase all be opened at the same time in open court, that the parties be notified of that time and that the sale be made pursuant to an order of the Court made at that time or after the parties have had an opportunity to be heard,

      • (iii) the sale not necessarily be to the highest or any other bidder, or

      • (iv) after the opening of the offers and after hearing from the parties, if it is doubtful that a fair price has been offered, the amount of the highest offer be communicated to the other persons who made offers or to some other class of persons or that other steps be taken to obtain a higher offer;

    • (c) the property be sold without advertisement;

    • (d) an agent be employed to sell the property, subject to such conditions as are stipulated in the order or subject to subsequent approval by the Court, on such terms as to compensation of the agent as may be stipulated in the order;

    • (e) any steps be taken for the safety and preservation of the property;

    • (f) where the property is deteriorating in value, it be sold forthwith;

    • (g) where the property is on board a ship, it be removed or discharged;

    • (h) where the property is perishable, it be disposed of on such terms as the Court may order; or

    • (i) the property be inspected in accordance with rule 249.

  • Marginal note:Commission

    (2) The appraisal or sale of property under arrest shall be effected under the authority of a commission addressed to the sheriff in Form 490.

  • Marginal note:Sale free from liens

    (3) Property sold under subsection (1) is free of any liens under Canadian maritime law.

  • Marginal note:Execution of commission

    (4) As soon as possible after the execution of a commission referred to in subsection (2), the sheriff shall

    • (a) file the commission with a return setting out the manner in which it was executed;

    • (b) pay into court the proceeds of the sale; and

    • (c) file the sheriff's accounts and vouchers in support thereof.

  • Marginal note:Sheriff's accounts

    (5) An assessment officer shall assess the sheriff's accounts and report the amount that the assessment officer considers should be allowed.

  • Marginal note:Assessment

    (6) Any party or caveator who is interested in the proceeds of sale referred to in subsection (4) may be heard on an assessment under subsection (5).

  • Marginal note:Review of assessment

    (7) On motion, the Court may review an assessment done under subsection (5).