A small shipyard in Glovertown has gone to court over the costs of keeping an unfinished trawler. ((CBC))

A shipyard in central Newfoundland has gone to court to get a white elephant of a boat off its slipway.

The Arctic Leader, which was supposed to be a state-of-the-art factory-freeze trawler, sits unbuilt at Glovertown Shipyard while its fate remains in legal limbo.

The Glovertown-based shipyard had been working on the 25-metre vessel when construction ground to a halt amid a dispute between the client and an outside supplier.

The Arctic Leader was intended to live up to its name, with cutting-edge technology to reduce fuel consumption at sea while the crew both harvested and processed turbot and crab.

Proponent Rex Simmonds, a Portugal Cove-St. Philip's resident, had attracted support from the National Research Council and the Atlantic Canada Opportunities Agency for the technology.

But Simmonds and his company, AMP Fisheries Ltd., fell out with Mount Pearl-based Terra Nova Marine Co. Ltd., which had been hired to supply the system.

Simmonds told CBC News that Terra Nova Marine  "didn't fulfil their contract," and that he was left without what he needed.

"We only got a panel," he said, adding the system that was being installed was "obsolete" and couldn't get approval from Transport Canada.

Simmonds, who said he lost about $1.4 million on the Arctic Leader, defaulted on a loan to Labki Finance Inc.

Labki, which has been trying — so far unsuccessfully — to sell the Arctic Leader, is the target of Glovertown Shipyard's action in Supreme Court of Newfoundland and Labrador to cover its losses.

Glovertown Shipyard is seeking $1,000 per day for storage fees for the unfinished vessel, for a period of two years.