Background

Dowcar sought release of steel pipe detained by AB Logistics, which claimed a possessory lien worth $150,000 CAD. Dowcar alleged interference by AB’s representatives hindered potential sales of the pipe.

Litigation History

• 2015: Dowcar obtained a replevin order to reclaim its pipe, while AB claimed a lien for unpaid debts.
• 2022: Master Birkett struck AB’s claim for delay and ordered release of the pipe; AB’s appeal was stayed pending a consolidated hearing in April 2024.

Key Issues

Dowcar argued that only part of the pipe should be retained to cover the lien, while AB resisted, questioning the legitimacy of Dowcar’s sales offers. Justice Mah was asked to determine a fair method for securing AB’s claim while allowing Dowcar to sell excess pipe.

Ruling

• Dowcar may release all its pipe by either:
  • Depositing $150,000 in a trust account, or
  • Providing a $150,000 letter of credit favoring AB.
• If Dowcar cannot secure funds, an independent appraisal will be arranged.
• The possessory lien is capped at $150,000, as previously determined.

No damages or costs have been definitively awarded yet, as the case remains unresolved.