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Husky Oil Ltd. v. Canada

T-72-87

Dubé J.

4/12/98

13 pp.

Motion for preliminary determination of question of law: whether Act, s. 150 or 158(2) applicable herein, and if s. 158(2) applicable, whether operates to bar plaintiff's claim completely or only with respect to proceeds of certain cheques-Plaintiff operated four supply vessels in 1980s-Vessels seized in February 1986 on ground vessels had been unlawfully used in Canadian waters contrary to Act-To avoid seizure, plaintiff deposited seven cheques totalling $412,901.90 February 19, 1986-By notices dated October 21, 1986, plaintiff notified of decision $39,593.58 forfeited and $63,308.32 returned to Husky-Action for recovery of deposit monies commenced January 9, 1987-By judgment of F.C.A. on consent of parties dated July 10, 1996, F.C.A. granted defendant leave to plead limitation period in Act, s. 158(2)-Act, s. 150 providing for three-month limitation period for proceeding for recovery of things seized; Act, s. 158(2) providing for six-month limitation period for proceeding for recovery of money deposited in accordance with Act, s. 157-Plaintiff claiming that if Act, s. 158(2) applicable, action timely with respect to last two post-dated cheques payable July 19, 1986 and August 19, 1986 respectively-Application of Dome Petroleum Ltd. v. R. (1988), 26 F.T.R. 318 (F.C.T.D.) where Strayer J. (as he then was) concluded Act, s. 150 referred only to actions for recovery of articles seized and actions for recovery of deposits, as herein, governed by Act, s. 158(2)-No reason to discard that decision-Act, s. 158(2) applicable herein-As to last two post-dated cheques, application of limitation period commences upon deposit, not from maturity date of cheques-Post-dated cheques may be negotiated any time between date of issue and date of maturity and for reasonable time thereafter-Therefore, Act, s. 158(2) operates to bar plaintiff's claim completely-Customs Act, R.S.C. 1970, c. C-40, ss. 150, 158(2).

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