In rem

Canada

An action in rem does not necessarily result in a judgment in rem as the owner of the ship may enter a personal appearance and thus submit to the jurisdiction of the court. This is usually the case when the plaintiff threatens to arrest the res and the owner arranges for bail or other security to be given. When the owner enters an appearance the action in rem becomes one in personam and the defendant's liability is not limited to the value of the res or the amount of the bail or security he or she has given. However, a plaintiff, having arrested a vessel, is entitled to security in an amount sufficient to cover the reasonably arguable best case, together with interest and costs, capped at the value of the wrongdoing vessel. The important remedies available from the Federal Court to secure assets pending the resolution of a dispute and to operate in rem may be significant in weighing the suitability of alternative fora in a motion for a stay based on forum non conveniens.