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CourlNunlber

FEDERALCOURT

AdnriraltyactionIn RemandIn Personam

BETWEEN:
r\rtificial ReefSocieWof Nova Scotia.

PLAINTIFF
AND:

Her Majestythe Crou,nin Right of Canada,The Ministerof

NationalDefence,andThe Shipex HMCS Fraser,Her Ownersand
All otherInterested
in Her

DEFENDANTS

STATEMENTOF CLAIM

TO THE DEI'ENIDANTS:
Her MajestyrlheQueenin Right of Canada
The DefendantShip the Ex HMCS Fraser,Her orvnersancl
in her
other Interestfed
The Minister of NationalDef'ence

A LEGAL PROCEEDINIGHAS BEEN COMMENCED

AGAINST YOU by thePlaintiff-. you is
The claimmadeagainst
setout in thelbllorvingpages.
o f No vaS c o t iav , He r N4 je
Ar ti ficialRe e fS oc:ie ty a s t yt h e Q r. re eent a l
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0 ooll

IF Yotl wISl{ To DEFE|{DTHIS PROCEEDING, ),ouor a

soUcitoractingfor you arerequired
to prepare
a Statenrent
of
Deferrcein Foun 17lB prescribedb1' the FeclerctlCortrt Rtrles,
1998,serveit on theplaintif]-ssolicitoror. rvherethe ptaintiffcloes
not havea solir;itor, serveit on the plaintiff,and f-rleit. u ith proof
of service,at a localofficeof the Couft,WITHIN 30 DAYS after
this statement ,rf clairnis servedon you, if t,on are servedu ithin
Canada.

If you are ser\,'ed

in the united Statesof America,the period for
servingandfiling your Statement of Defenceis 40 days. If vou are
servedoutside Canadaand the United Statesof American,the
period for servingand filing your Statementof Defence is sixty
days.

Copiesof the FederalCourt Rules,I 998,information concerning

the local office;sof the Court andothernecessaryinfonnationma>,
be obtainedon requestto the Administrator of thisCourtat Ottawa
(teleplrone 6"::.3-922-4238) or at anv local office thereof
(Vancouver- t565-3232).

IF YOU FAIIL TO DEFENDTHIS PROCEEDING,judgment

ma)' be given againstyou in your absence
and without further
noticeto you.

Datedthis27tr'davof Ausust.2010.
st$ltiffi'f,
Issued
by: TsJ"T1,""""H:Il
RegistryOfficer

CourtsAdministration
Service
l80l HollisStreet

Ar ti ficialReefS o cie tyo f NovaS cot iav . He r Ma je s t yt h e Q u e e ne t a l

R e Ex H MCSFra ser Page2
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17t l'F l o o r
IvfiT t/n
Halifbx,NovaSicotia
B 3J3N4

To:Her Majestythe Queenin Rightof Canacla

TheMinisterof NationalDefence
The Defendan'tShipexHMCSFraser,Her orvners and other
Interestedin her.
Careof theLocalOfficeof theDeoartment in Halifax
of Justice

lgllmre

Ar tifi ci al ReefS o cie tvof NovaS cot iav . He r Ma je s t yt lt e Q r" re eeni a l

R e Ex H MCSFra sr:r P a g e3
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CLAIM

I . ThePlaintiff, ArtificialReefSociety'
of Nor,aScotiais a Societl,'
incorporatedunderthe lawsof NovaScotiaandhasan officeand
placeof business at 233Lahar,'e Bridgewater,
Street, NovaScotia.

2.The Defendants, The Queenin Right of Canadaandthe Minister

of National Defenceare the presentowners of the Defendant
vessel,ex HM(IS Fraserandhavean address for servicecareof the
local office of the Departmentof Justicein Halifax,Nova Scotia.
The Defendar::tvessel, the ex HMCS Fraser was previously
decommissiont:d by the CanadianNavy and rvastransfenedfrom
the Plaintiff to the Defendantsas set out belorv.The ex HMCS
Fraseris not engagedin govemmentserviceas coveredunder
s,13(7\of thel;ederalCor.rrt
Act

times,the DefendantHer Majestl'theQueenin

3. At ali mater:ial
Right of Cana,da was the new owner of the former warship,ex
HMCS Fraser and which was transferredback to the federal
governmentpursuantto a contractbetweenthe Defendantsandthe
PlaintiffdatedDecember 23.2008.

4. At the nraterial times, the Plaintiff contractedwith the

Defendantsthrlt as part of the consideration of the
for the transf-er
Defendantship bacl<to the Defendants,the Plaintiff rvould be
affordedthe abilify-to make a bid for the vesselin the eventthat
the Defendant decided to scrap the r,'essel.Clause 9 of the
Agreementsp,:cifically providedtor the follor'ving:

decidesthatthe vesselrnavbe scrapped.

9/ In the event tl:attheDepartment the
Department timethe
rvill advisethe ARSNSof thedecision.If witliin a reasonable
ARSNS makesa proposalfor useof the vesselas an artificialreef.the Departnrent

Ar ti ficia lReefS o cie tyof No vaS c o t iav . He r Ma je s t yt h e Q t re e ne t a l

Re Ex HMCSFrasr:r Page,1
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j t t i t ri

r'rillgive theARIiNSp:oposaltirstconsidefation.Shouidthe Departntenr find the

ARSNSproposalacceptable thenthevesselwill be nracear.ailable
to theARSNSlbr
thesurnof onedrlla r (S 1 .00):

5. The Defende,nts advisedthe Plaintiffthatit wastheirintentionto

scrapthe vessel.ThePlaintiffin accordance rviththe agreement
submitted a delailedproposalfor reusingthevesselasa artificial
reef in accordance rviththe Agreement.

6. The Defendants via an emailcommunication on or aboutJuly

14,2010,rejected thePlaintiffs proposalandadvisedit had
concerns,but ciidnot allorvthe Plaintiffto address
the unspecified
concernsor makefurtherdetailedsubmissions.

7. The Plaintifl sa1,andthe factsarethatthe Defendantshave

takenstepsto r;crapthe Defendantvesselby a third partyin
Ontarioandfailedor neslected
to abideby thetermsof the
Decemb
er 23,2008Agreement.

8. The Plairrtiffsavs,andthe factsare,they'actedin goodfaith and

wish to procee,d with andhavethe abilifyto makefurther
submissionS crlflcerningthe 2010Proposal andaddress in a
detailedfashion.theconcerns of theDefendants.

9. The Plaintilfagreedto the termsof the retransfer

of HMCS
Fraseron the basisthatthe Defbndantship,the lastof the DDH
Destroyeresc{)r-ts
would endits daysasan artificialreefas a
Memorialto theCanadian Navy.

10.The Plaint.iffsa)'sandthe f-actsarethe Defendantsfbiledto

give effectto the cotitractual
termsof tlie Agreementand failedto
Ar tifi ci alRe e fS or.ie tyo f No vaS c o t iav . He r Ma je s t yt h e Q u e e ne t ; rl
Re Ex H MCSFra ser' P a g e5
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allow the Plaint:Lff

to providefr-u1her
andbetterinforrnationto
address the conr:erurs

I l, ThePlaintiffhaslearned
throughthepressthattheDefendant
sltipis to be scrappedin CentralCanada. No noticehasbeengiven
to the Plaintiffto makerepresentationsto the Defendants andthe
Defendants haveneglected or refusedto give effectto the
contractual ternrs.

12.ThePlaintilfsaysif theDefendant vesselis soldor transferred

it vrill suff-erirreparable
or scrapped harm.

13.ThePlaintilTsays andthe factsarethatthe Plaintiffhasa

ownershipintelestin the vesselandas suchhas a statutoryright in
on 22(2)(a)of theFederal
remundersectj CoullAct.

14.The Plaintif,freiieduponthe Defendants andeachof them rn

the representat:,onscontainedin the Agreementandrequestgiven
the uniquenatureof the Agreementspecificperfonnance of the
Agreernentanclr,r,ith the Courl'ssupervisionof a mechanism to
addressthe furthersubmissions of the Def'endants'
concerns.

thePlaintiff.sclaimagainstthe Defendants,
15.In the alternative,
the servantsor agents,is for damages for negligence,
and/orbreach
of contract.

16. As a resultof negligence and/orbreachof contractThe

the full parlicularswill be
Plaintiffvlill sufTerlossanddarnases,
pror,'ided.

L7. The Plaintiffseelcs

a declaration give rise
thatthe Agreetnent
vessel.
to a maritimelien aeainstthe Defendaut

Ar tifi ci alReefS or;ie fyo f No vaS c o t iav . He t 'Ma je s t yt h e Q r-re eent a l

R e Ex HMCSFrase r p a g e6
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\\t) ( o.
ll r\

18. The Plainti.iffurtherclaimsprejudgment interestassLtch

interestrates3rr)s tby'Canadian rnaritimelar,r'and
compounded
semi-annuaily'and u'hicharedetennined b-vthisHonorable Courr.

Wherelbrethe PlaintiffClaims:

(a)I)amag,es;
(b)Prejudl3rnent interestat ratessetby'CanadianMaritime
Lar,v;
(c) A decl;aration give rise
thatthe actionsof theDefendants
to mar;Ltime lien;
(d) Condernnation of the Defendantship;
(e) An Int;rirn Interlocutoryinjunction;
(0 SpecificPerformance of the Contract;
(g) Costs,;
(h) Suchliurtherandotherrelief asgrantedby this
HonotuableCouirt.

Theamountclrlimed exceeds exclusive

$50,000.00 of interest
and
costs,andtheactionis not beingproceeded
with asa simplified
action.

The Plqrntiffproposes
thatthe actionbe triedat Halifax,Nova
otia, t$;1 1rr'az : L]* *l
t$rl
tihffn $rll;ls|$$
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,!t!1i:1! rriiil i;

J:
iltlldt [t{t{t{l ftli
4l? iI{ --*##-* H
s
,-k'tEdffi[--*-*&!
for tlrePlaintiff .,,'c,i,-,,--.-._
Straith
-Elizanefr
Cavgr]Y
Director- Directrtce

THIS STATEMENTOF CLAIM is filedby JarnesL. Straithof

OceanHouse(Pacific).
StraithLau'Corporation
NovaS cot iav . He r iv la je s t lh
Ar ti ficial ReefS or:ie ty'of y e Q t re e ne t a l
Re Ex HlvlcsFra ser Page7
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WestVancouver,
6438BayStree:t, V7W 2Hl.
BritishColumbia
.1272-email:j aystraith@gmail.corn
ne 604.921
Telepho

.It.l --'
gttE+---l-Ft' t, I t

et al
Ar tifi cia lRe e fS ocietyo f No vaS c o t iav . He r Ma je s t yt h e Q u e e n
P ag e8
Re Ex HMCSFra ser