A December 9, 2019, judgment of the Federal Court (Norstar Shipping and Trading v. The ROSY) reiterated in a case where the value of the ship was not an issue that bail should be equal to the plaintiff’s reasonably arguable best case, that a close examination of the plaintiff’s claim is not required, and that the court should reduce the claim only when the circumstances are “quite extraordinary”, or there are other special circumstances. The Court declined to reduce security on a motion to fix bail, where there was a dispute over an amount claimed in relation to alleged lost profit on a charterparty repudiation. The Defendant sought to have the security reduced by 25%, but the Court refused to interfere, noting that the merits of the claim would be dealt with in arbitration.
Standard for Security Reiterated
