Section 43 — Federal Courts Act: Jurisdiction in personam

Subject to subsection (4), the jurisdiction conferred on the Federal Court by section 22 may in all cases be exercised in personam . Subject to subsection (3), the jurisdiction conferred on the Federal Court by section 22 may be exercised in rem against the ship, aircraft or other property that is the subject of the action, or against any proceeds from its sale that have been paid into court. Despite subsection (2), the jurisdiction conferred on the Federal Court by section 22 shall not be exercised in rem with respect to a claim mentioned in paragraph 22(2)(e), (f), (g), (h), (i), (k), (m), (n), (p) or (r) unless, at the time of the commencement of the action, the ship, aircraft or other property that is the subject of the action is beneficially owned by the person who was the beneficial owner at the time when the cause of action arose. No action in personam may be commenced in Canada for a collision between ships unless the defendant is a person who has a residence or place of business in Canada; the cause of action arose in Canadian waters; or the parties have agreed that the Federal Court is to have jurisdiction. Subsection (4) does not apply to a counter-claim or an action for a collision, in respect of which another action has already been commenced in the Federal Court. Where an action for a collision between ships has been commenced outside Canada, an action shall not be commenced in Canada by the same person against the same defendant on the same facts unless the action in the other jurisdiction has been discontinued. No action in rem may be commenced in Canada against any warship, coast-guard ship or police vessel; any ship owned or operated by Canada or a province, or any cargo laden thereon, where the ship is engaged on government service; or any ship owned or operated by a sovereign power other than Canada, or any cargo laden thereon, with respect to any claim where, at the time the claim arises or the action is commenced, the ship is being used exclusively for non-commercial governmental purposes. The jurisdiction conferred on the Federal Court by section 22 may be exercised in rem against any ship that, at the time the action is brought, is owned by the beneficial owner of the ship that is the subject of the action. In an action for a collision in which a ship, an aircraft or other property of a defendant has been arrested, or security has been given to answer judgment against the defendant, and in which the defendant has instituted a cross-action or counter-claim in which a ship, an aircraft or other property of the plaintiff is liable to arrest but cannot be arrested, the Federal Court may stay the proceedings in the principal action until security has been given to answer judgment in the cross-action or counter-claim.