Kirby Offshore Marine Pacific LLC v. Heiltsuk

Kirby Offshore Marine Pacific LLC v. Heiltsuk
Court (s) Database
Federal Court Decisions
Date
2019-07-26
Neutral citation
2019 FC 1009
File numbers
T-733-19
Decision Content
Date: 20190726
Docket: T-733-19
Citation: 2019 FC 1009
Ottawa, Ontario, July 26, 2019
PRESENT: Madam Justice Strickland
BETWEEN:
KIRBY OFFSHORE MARINE PACIFIC LLC, KIRBY OFFSHORE MARINE OPERATING LLC
Plaintiffs
and
HEILTSUK HÍMÁS and HEILTSUK TRIBAL COUNCIL, each on their own behalf and on behalf of the members of the Heiltsuk Nation
Defendants
and
THE ADMINISTRATOR OF THE SHIP-SOURCE OIL POLLUTION FUND
Party by Statute
ORDER AND REASONS
TABLE OF CONTENTS
I. Introduction 2
II. Background 3
III. Procedural History 5
IV. Issues 9
V. Legislation 9
VI. Positions of the Parties 36
A. Kirby’s Submissions 36
B. Heiltsuk’s Submissions 40
C. The SOPF 43
VII. Preliminary Matters 45
A. Jurisdiction of this Court 46
B. Extent of requested enjoinment 47
C. Application of the CLC 47
D. The tests for enjoinment and a stay of proceedings 50
(i) Test for enjoinment 50
(ii) Test for a stay of proceeding 62
E. Attornment 72
(i) HTC LOU 74
(ii) Correspondence between counsel 76
(iii) Non-compliance with BCSC Civil Rules 77
F. Kreutz Affidavit 80
VIII. Issue 1: Should Heiltsuk be enjoined from continuing the BCSC action against the Kirby Defendants to that action? 81
IX. Issue 2: Should this Court stay the Limitation Action brought by Kirby in this Court? 103
X. Directions and Orders sought 106
A. Constitution of a limitation fund 106
B. Reduction of the amounts secured by the LOUs 108
C. Enjoinment 109
D. Stay 110
E. Draft Order 110
F. Case management 111
I.
Introduction
[1] Before the Court are two related motions, both of which concern a shipowner’s right to limit its liability for oil pollution damage by way of the Marine Liability Act, SC 2001, c 6 [MLA].
[2] More specifically, Kirby Offshore Marine Pacific LLC [Kirby Pacific] and Kirby Offshore Marine Operating LLC [Kirby Operating] commenced an action in this Court seeking to limit their liability [Kirby Operating and Kirby Pacific are together referred to as Kirby in these reasons] arising from a ship-source oil pollution incident. They now bring a motion seeking an order providing direction as to the constitution of a limitation fund, the enjoining of other claims, and other relief as described in their Notice of Motion [Enjoinment Motion].
[3] Heiltsuk Hímás and Heiltsuk Tribal Council, each on their own behalf and on behalf of the members of the Heiltsuk First Nation [together, Heiltsuk] filed a claim against Kirby and others in the British Columbia Supreme Court [BCSC] pertaining to oil pollution damage arising from the same ship-source incident. Heiltsuk now brings a motion seeking to stay Kirby’s limitation action, brought in this Court, on the basis that it is not a convenient forum [Stay Motion].
[4] The facts and law overlap in the Enjoinment Motion and the Stay Motion and they were heard together in Vancouver on July 8, 2019.
II. Background
[5] The background facts relevant to these motions are largely undisputed.
[6] In brief, Kirby Operating is the registered owner of the tug “Nathan E. Stewart” [tug]. Kirby Pacific is the registered owner of the barge “DBL-55” [barge]. When operating together, the tug and barge were connected through a JAK®ATB Coupling System [coupling system].
[7] Having discharged the barge’s cargo of jet fuel and gasoline, the connected tug and barge were en route to Vancouver when the second mate of the tug, Henry Hendrix, an employee of Kirby Pacific, fell asleep while at the helm. At approximately 1:08 a.m. on October 13, 2016, the tug and barge struck Edge Reef off Athlone Island, at the entrance to Seaforth Channel, approximately ten nautical miles west of Bella Bella, British Columbia [Incident]. As a result of the Incident, the tug’s fuel tanks were breached and approximately 107,552 litres of diesel fuel and 2,240 liters of lubricants were released from the tug into the sea.
[8] On that same date, a Unified Command was formed to lead the Incident response. This included representatives of Kirby, the Canadian Coast Guard, the British Columbia Ministry of Environment and Climate Change Strategy, Environment and Climate Change Canada, Transport Canada, Fisheries and Oceans Canada, Heiltsuk, as well as others, including spill response contractors and environmental consultants engaged by or on behalf of Kirby.
[9] On October 29, 2016, Kirby Offshore Marine LLC [Kirby Offshore], which is described in the Kirby submissions as the parent company of Kirby Operating, entered into a Funding Agreement with Heiltsuk Tribal Council, on behalf of Kirby Operating and Kirby Pacific, in respect to spill response costs, income loss claims, and other claims and expenses arising out of the Incident. Kirby states that, to date, in excess of CAD $3.5 million has been paid to Heiltsuk Tribal Council under the Funding Agreement.
[10] On October 13, 2016, the barge was separated from the tug and towed to another location. Salvage operations for the tug concluded and a final situation report was issued by the Unified Command on November 21, 2016. Kirby states that, in conjunction with the governments of British Columbia and Canada, it has remained engaged in environmental impact assessment activities resulting from the Incident.
[11] On December 16, 2016, Starr Indemnity & Liability Company, on behalf of Kirby, provided a letter of undertaking to the Ship-source Oil Pollution Fund [SOPF] in the amount of CAD $20 million [SOPF LOU]. On February 3, 2017, a letter of undertaking in the amount of CAD $12 million was similarly provided to the Heiltsuk Tribal Council [HTC LOU].
III. Procedural History
[12] On October 9, 2018, Heiltsuk filed a Notice of Civil Claim – Admiralty (In Rem and In Personam) in the BCSC [BCSC Claim] as against the owners and all others interested in the tug and barge, Kirby Pacific, Kirby Offshore, Kirby Operating, John Doe Corporation, the master and second mate of the tug [all referred to collectively with respect to the BCSC Claim as the Kirby Defendants], the Attorney General of Canada [AG Canada], and the Attorney General of British Columbia [AG British Columbia].
[13] The BCSC Claim describes Heiltsuk Nation as being comprised of five tribes which make up a self-governing nation of indigenous people who are “aboriginal people” under s 35(1) of the Constitution Act, 1982, being Schedule B to the Canada Act 1982 (UK), 1982, c 11 [Constitution Act, 1982] and qualify as an Indian Band under the Indian Act, RSC 1985, c I-5. Heiltsuk Hímás are the hereditary chiefs of Heiltsuk Nation, and Heiltsuk Tribal Council is its elected governing body. Heiltsuk Tribal Council is stated to be an assignee of all choses in action related to the Incident for listed Heiltsuk business entities.
[14] The BCSC Claim is a lengthy document but, in essence, it asserts Heiltsuk’s Aboriginal interests in “Heiltsuk Territory”, which territory it describes as including lands and water-covered lands in a described “Claim and Loss Area”. Heiltsuk asserts that this includes all saltwater covered lands, including the seabed and foreshore, and certain named Indian reserve lands. However, their claim of Aboriginal title and other Aboriginal rights excludes, except for those named Indian reserve lands, all lands above the high water mark, without prejudice to future Aboriginal title claims regarding the excluded areas. In essence, Heiltsuk appears to only be claiming Aboriginal title and rights over territories it claims were impacted by the Incident. It has left to another day its claim to other Aboriginal title and rights over the rest of its claimed traditional territory. Heiltsuk states that it has asserted the necessary facts in the BCSC Claim to establish communal Aboriginal rights or other interests over the Claim and Loss Area, including Aboriginal title, Aboriginal management rights, Aboriginal harvesting rights, and communal and commercial licence rights to fish and harvest marine resources.
[15] The BCSC Claim asserts that the Kirby Defendants are liable for the Incident. Heiltsuk bases its allegations against the Kirby Defendants on recklessness, negligence, nuisance, breach of contract, and breach of statutory duty. The relief sought includes: declarations of the asserted Aboriginal title and rights; a declaration that the Kirby Defendants are obliged under the British Columbia Environmental Management Act, SBC, 2003, c 53 [EMA] to perform or fund environmental assessments; a declaration that Canada and British Columbia have a legal duty to consult with Heiltsuk concerning decisions made pursuant to s 180(1) of the Canada Shipping Act, SC 2001, c 26 [CSA] or s 91.2(3) of the EMA; oil pollution damages under the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001, concluded at London on March 23, 2001 [Bunkers Convention] or, alternatively, the International Convention on Civil Liability for Oil Pollution Damage, 1992, concluded at London on November 27, 1992, Article V of which was amended by the Resolution adopted by the Legal Committee of the International Maritime Organization on October 18, 2000 [CLC]; other damages; and a mandatory injunction requiring Kirby to comply with all applicable Canadian and British Columbia laws relating to minimum watch personnel.
[16] Heiltsuk also asserts in the BCSC Claim that the limits on “pollution damage”, as defined in the Bunkers Convention or, alternatively, the CLC, unjustifiably infringe its rights under s 35 of the Constitution Act, 1982 by limiting recovery stemming from impairments of the environment that do not involve losses of profit. This includes precluding compensation for interference with use and enjoyment of Aboriginal harvesting rights and preventing complete compensation for interference with Aboriginal interests. Heiltsuk asserts that the infringements are unjustified because Canada failed to consult with Heiltsuk about the impact of the Bunkers Convention, or the CLC, on Heiltsuk’s Aboriginal rights. It also asserts that Canada failed to remedy the infringements though s 107 of the MLA, which allows for claims related to loss of income or loss of food source or animal skins, but does not allow for claims based on communal harvesting rights or fishing for communal consumption or use. Further, Heiltsuk claims that the Bunkers Convention or the CLC unjustifiably infringe s 35 by preventing Heiltsuk from seeking to recover, through common law causes of action, for damages not covered by those definitions of “pollution damages” under those conventions. Heiltsuk also asserts that the provisions of the conventions that prescribe recoverable claims are invalid to the extent that they apply to a claim for loss or damage relating to Aboriginal rights.
[17] On April 1, 2019, in response to the BCSC Claim, the Kirby Defendants filed a “Jurisdictional Response” in Form 108, pursuant to Rule 21-8 of the British Columbia Supreme Court Civil Rules, BC Reg 168/2009 [BCSC Civil Rules] disputing the jurisdiction of the BCSC.
[18] On May 1, 2019, the Kirby Defendants filed a Notice of Application in the BCSC proceeding seeking an order staying or dismissing the BCSC Claim against the Kirby Defendants. On that same date, Kirby filed a Statement of Claim in this Court, T‑733‑19, commencing its limitation action [Limitation Action]. The Limitation Action seeks, inter alia, an order limiting liability for all claims arising against Kirby from the Incident, pursuant to the Bunkers Convention and the Convention on Limitation of Liability for Maritime Claims, 1976, concluded at London on November 19, 1976, as amended by the Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims, 1976, concluded at London on May 2, 1996 [LLMC]. Alternatively, Kirby seeks to limit its liability in accordance with the CLC. Further, it seeks an order constituting a limitation fund, and enjoining Heiltsuk and any other person or party from commencing proceedings or continuing proceedings against Kirby in respect of the Incident in any other Court. Kirby also seeks orders on a variety of matters relating to the requested limitation fund.
[19] On May 31, 2019, Heiltsuk filed a Notice of Application in the BCSC Claim seeking an order that the BCSC confirm its jurisdiction to adjudicate the claims against the Kirby Defendants in that proceeding. On that same date, Heiltsuk filed a Notice of Motion in this Court seeking to stay the Limitation Action on jurisdictional grounds. Heiltsuk set down its Notice of Application in the BCSC Claim to be heard on August 6, 2019. Kirby asserts that this was done unilaterally.
[20] By Direction dated June 14, 2019, Chief Justice Crampton required Heiltsuk to bring its motion seeking a stay of the Limitation Action and for it to be heard on July 8, 2019.
[21] On July 3, 2019, the Administrator of the Ship-source Oil Pollution Fund [Administrator], as a party by statute pursuant to s 109 of the MLA, filed a Notice of Appearance and subsequently submitted motion records in response to the Enjoinment Motion and the Stay Motion.
IV. Issues
[22] In my view, while there are many peripheral matters raised in the parties’ submissions, there are two issues arising from these two motions which must be determined by this Court:
Should Heiltsuk be enjoined from continuing the BCSC Claim against the Kirby Defendants to that action, or
Should this Court stay the Limitation Action brought by Kirby in this Court?
V. Legislation
[23] In my view, prior to addressing these issues, it is necessary to understand the rather complex legislative backdrop and the regime surrounding a shipowner’s entitlement to limit its liability. This provides critical context to the issues and analysis that follows.
[24] The MLA sets out how maritime claims, as defined in that Act and set out below, will be addressed in Canada. Importantly, this includes incorporating into the law of Canada the provisions of international conventions, to which Canada is a signatory, which permit shipowners to limit their liability for maritime claims.
[25] The most relevant provisions of the MLA are set out below.
Definitions
Définitions
2 The definitions in this section apply in this Act.
2 Les définitions qui suivent s’appliquent à la présente loi.
Admiralty Court means the Federal Court. (Cour d’amirauté)
Cour d’amirauté La Cour fédérale. (Admiralty Court)
…
[…]
PART 3
PARTIE 3
Limitation of Liability for Maritime Claims
Limitation de responsabilité en matière de créances maritimes
Interpretation
Définitions et dispositions interprétatives
Definitions
Définitions
24 The definitions in this section apply in this Part.
24 Les définitions qui suivent s’appliquent à la présente partie.
Convention means the Convention on Limitation of Liability for Maritime Claims, 1976, concluded at London on November 19, 1976, as amended by the Protocol, Articles 1 to 15 of which Convention are set out in Part 1 of Schedule 1 and Article 18 of which is set out in Part 2 of that Schedule. (Convention)
Convention La Convention de 1976 sur la limitation de la responsabilité en matière de créances maritimes conclue à Londres le 19 novembre 1976 – dans sa version modifiée par le Protocole – dont les articles 1 à 15 figurent à la partie 1 de l’annexe 1 et l’article 18 figure à la partie 2 de cette annexe. (Convention)
maritime claim means a claim described in Article 2 of the Convention for which a person referred to in Article 1 of the Convention is entitled to limitation of liability. (créance maritime)
créance maritime Créance maritime visée à l’article 2 de la Convention contre toute personne visée à l’article 1 de la Convention. (maritime claim)
…
[…]
Protocol means the Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims, 1976, concluded at London on May 2, 1996, Articles 8 and 9 of which are set out in Part 2 of Schedule 1. (Protocole)
Protocole Le Protocole de 1996 modifiant la Convention de 1976 sur la limitation de la responsabilité en matière de créances maritimes conclu à Londres le 2 mai 1996, dont les articles 8 et 9 figurent à la partie 2 de l’annexe 1. (Protocol)
unit of account means a special drawing right issued by the International Monetary Fund. (unités de compte)
unités de compte S’entend des droits de tirage spéciaux émis par le Fonds monétaire international. (unit of account)
Extended meaning of expressions
Extension de sens
25 (1) For the purposes of this Part and Articles 1 to 15 of the Convention,
25 (1) Pour l’application de la présente partie et des articles 1 à 15 de la Convention :
(a) ship means any vessel or craft designed, used or capable of being used solely or partly for navigation, without regard to method or lack of propulsion, and includes
…
(ii) a ship that has been stranded, wrecked or sunk and any part of a ship that has broken up,
…
a) navire s’entend d’un bâtiment ou d’une embarcation conçus, utilisés ou utilisables, exclusivement ou non, pour la navigation, indépendamment de leur mode de propulsion ou de l’absence de propulsion […] y sont assimilés […] les navires échoués ou coulés ainsi que les épaves et toute partie d’un navire qui s’est brisé;
…
[…]
Inconsistency
Incompatibilité
(2) In the event of any inconsistency between sections 28 to 34 of this Act and Articles 1 to 15 of the Convention, those sections prevail to the extent of the inconsistency.
(2) Les articles 28 à 34 de la présente loi l’emportent sur les dispositions incompatibles des articles 1 à 15 de la Convention.
Application
Champ d’application
Force of law
Force de loi
26 (1) Subject to the other provisions of this Part, Articles 1 to 15 and 18 of the Convention and Articles 8 and 9 of the Protocol have the force of law in Canada.
26 (1) Sous réserve des autres dispositions de la présente partie, les articles 1 à 15 et 18 de la Convention et les articles 8 et 9 du Protocole ont force de loi au Canada.
…
[…]
State Party to the Convention
État partie à la Convention
27 For purposes of the application of the Convention, Canada is a State Party to the Convention.
27 Pour l’application de la Convention, le Canada est un État partie à la Convention.
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[…]
Procedure
Procédure
Jurisdiction of Admiralty Court
Compétence exclusive de la Cour d’amirauté
32 (1) The Admiralty Court has exclusive jurisdiction with respect to any matter relating to the constitution and distribution of a limitation fund under Articles 11 to 13 of the Convention.
32 (1) La Cour d’amirauté a compétence exclusive pour trancher toute question relative à la constitution et à la répartition du fonds de limitation aux termes des articles 11 à 13 de la Convention.
Right to assert limitation defence
Droit d’invoquer la limite de responsabilité
(2) Where a claim is made or apprehended against a person in respect of liability that is limited by section 28, 29 or 30 of this Act or paragraph 1 of Article 6 or 7 of the Convention, that person may assert the right to limitation of liability in a defence filed, or by way of action or counterclaim for declaratory relief, in any court of competent jurisdiction in Canada.
(2) Lorsque la responsabilité d’une personne est limitée aux termes des articles 28, 29 ou 30 de la présente loi ou du paragraphe 1 des articles 6 ou 7 de la Convention, relativement à une créance – réelle ou appréhendée – , cette personne peut se prévaloir de ces dispositions en défense, ou dans le cadre d’une action ou demande reconventionnelle pour obtenir un jugement déclaratoire, devant tout tribunal compétent au Canada.
Powers of Admiralty Court
Pouvoirs de la Cour d’amirauté
33 (1) Where a claim is made or apprehended against a person in respect of liability that is limited by section 28 or 29 of this Act or paragraph 1 of Article 6 or 7 of the Convention, the Admiralty Court, on application by that person or any other interested person, including a person who is a party to proceedings in relation to the same subject-matter before another court, tribunal or authority, may take any steps it considers appropriate, including
33 (1) Lorsque la responsabilité d’une personne est limitée aux termes des articles 28 ou 29 de la présente loi ou du paragraphe 1 des articles 6 ou 7 de la Convention, relativement à une créance – réelle ou appréhendée – , la Cour d’amirauté peut, à la demande de cette personne ou de tout autre intéressé – y compris une partie à une procédure relative à la même affaire devant tout autre tribunal ou autorité – , prendre toute mesure qu’elle juge indiquée, notamment :
(a) determining the amount of the liability and providing for the constitution and distribution of a fund under Articles 11 and 12 of the Convention;
a) déterminer le montant de la responsabilité et faire le nécessaire pour la constitution et la répartition du fonds de limitation correspondant, conformément aux articles 11 et 12 de la Convention;
(b) joining interested persons as parties to the proceedings, excluding any claimants who do not make a claim within a certain time, requiring security from the person claiming limitation of liability or from any other interested person and requiring the payment of any costs; and
b) joindre tout intéressé comme partie à la procédure, exclure tout créancier forclos, exiger une garantie des parties invoquant la limitation de responsabilité ou de tout autre intéressé et exiger le paiement des frais;
(c) enjoining any person from commencing or continuing proceedings in any court, tribunal or authority other than the Admiralty Court in relation to the same subject-matter.
c) empêcher toute personne d’intenter ou de continuer quelque procédure relative à la même affaire devant tout autre tribunal ou autorité.
…
[…]
Procedural matters
Procédure
(4) The Admiralty Court may
(4) La Cour d’amirauté peut :
(a) make any rule of procedure it considers appropriate with respect to proceedings before it under this section; and
a) établir les règles de procédure qu’elle juge utiles relativement à toute affaire dont elle est saisie au titre du présent article;
(b) determine what form of guarantee it considers to be adequate for the purposes of paragraph 2 of Article 11 of the Convention.
b) déterminer quelle garantie elle estime acceptable pour l’application du paragraphe 2 de l’article 11 de la Convention.
Interest
Intérêt
(5) For the purposes of Article 11 of the Convention, interest is payable at the rate prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpayments of tax under that Act.
(5) Pour l’application de l’article 11 de la Convention, l’intérêt est calculé au taux fixé en vertu de la Loi de l’impôt sur le revenu sur les sommes à verser par le ministre du Revenu national à titre de remboursement de paiements d’impôt en trop au titre de cette loi.
[26] Schedule 1, Part 1 of the MLA contains the text of Articles 1 to 15 of the LLMC. The most relevant Articles are set out below for ease of reference.
Article 1
Article 1
Persons entitled to limit liability
Personnes en droit de limiter leur responsabilité
1 Shipowners and salvors, as hereinafter defined, may limit their liability in accordance with the rules of this Convention for claims set out in Article 2.
1 Les propriétaires de navires et les assistants, tels que définis ci-après, peuvent limiter leur responsabilité conformément aux règles de la présente Convention à l’égard des créances visées à l’article 2.
2 The term shipowner shall mean the owner, charterer, manager and operator of a seagoing ship.
2 L’expression propriétaire de navire, désigne le propriétaire, l’affréteur, l’armateur et l’armateur-gérant d’un navire de mer.
3 Salvor shall mean any person rendering services in direct connexion with salvage operations. Salvage operations shall also include operations referred to in Article 2, paragraph 1(d), (e) and (f).
3 Par assistant, on entend toute personne fournissant des services en relation directe avec les opérations d’assistance ou de sauvetage. Ces opérations comprennent également celles que vise l’article 2, paragraphe 1, alinéas d), e) et f).
4 If any claims set out in Article 2 are made against any person for whose act, neglect or default the shipowner or salvor is responsible, such person shall be entitled to avail himself of the limitation of liability provided for in this Convention.
4 Si l’une quelconque des créances prévues à l’article 2 est formée contre toute personne dont les faits, négligences et fautes entraînent la responsabilité du propriétaire ou de l’assistant, cette personne est en droit de se prévaloir de la limitation de la responsabilité prévue dans la présente Convention.
5 In this Convention the liability of a shipowner shall include liability in an action brought against the vessel herself.
5 Dans la présente Convention, l’expression responsabilité du propriétaire de navire comprend la responsabilité résultant d’une action formée contre le navire lui-même.
6 An insurer of liability for claims subject to limitation in accordance with the rules of this Convention shall be entitled to the benefits of this Convention to the same extent as the assured himself.
6 L’assureur qui couvre la responsabilité à l’égard des créances soumises à limitation conformément aux règles de la présente Convention est en droit de se prévaloir de celle-ci dans la même mesure que l’assuré lui-même.
7 The act of invoking limitation of liability shall not constitute an admission of liability.
7 Le fait d’invoquer la limitation de la responsabilité n’emporte pas la reconnaissance de cette responsabilité.
[27] “Maritime claims” as defined in s 24 of the MLA, mean claims described in Article 2 of the LLMC. Articles 3 and 4 set out certain limitations to these claims.
Article 2
Article 2
Claims subject to limitation
Créances soumises à la limitation
1 Subject to Articles 3 and 4 the following claims, whatever the basis of liability may be, shall be subject to limitation of liability:
1 Sous réserves des articles 3 et 4, les créances suivantes, quel que soit le fondement de la responsabilité, sont soumises à la limitation de la responsabilité :
(a) claims in respect of loss of life or personal injury or loss of or damage to property (including damage to harbour works, basins and waterways and aids to navigation), occurring on board or in direct connexion with the operation of the ship or with salvage operations, and consequential loss resulting therefrom;
a) créances pour mort, pour lésions corporelles, pour pertes et pour dommages à tous biens (y compris les dommages causés aux ouvrages d’art des ports, bassins, voies navigables et aides à la navigation) survenus à bord du navire ou en relation directe avec l’exploitation de celui-ci ou avec des opérations d’assistance ou de sauvetage, ainsi que pour tout autre préjudice en résultant;
(b) claims in respect of loss resulting from delay in the carriage by sea of cargo, passengers or their luggage;
b) créances pour tout préjudice résultant d’un retard dans le transport par mer de la cargaison, des passagers ou de leurs bagages;
(c) claims in respect of other loss resulting from infringement of rights other than contractual rights, occurring in direct connexion with the operation of the ship or salvage operations;
c) créances pour d’autres préjudices résultant de l’atteinte à tous droits de source extracontractuelle, et survenus en relation directe avec l’exploitation du navire ou avec des opérations d’assistance ou de sauvetage;
(d) claims in respect of the raising, removal, destruction or the rendering harmless of a ship which is sunk, wrecked, stranded or abandoned, including anything that is or has been on board such ship;
d) créances pour avoir renfloué, enlevé, détruit ou rendu inoffensif un navire coulé, naufragé, échoué ou abandonné, y compris tout ce qui se trouve ou s’est trouvé à bord;
(e) claims in respect of the removal, destruction or the rendering harmless of the cargo of the ship;
e) créances pour avoir enlevé, détruit ou rendu inoffensive la cargaison du navire;
(f) claims of a person other than the person liable in respect of measures taken in order to avert or minimize loss for which the person liable may limit his liability in accordance with this Convention, and further loss caused by such measures.
f) créances produites par une personne autre que la personne responsable, pour les mesures prises afin de prévenir ou de réduire un dommage pour lequel la personne responsable peut limiter sa responsabilité conformément à la présente Convention, et pour les dommages ultérieurement causés par ces mesures.
…
[…]
Article 4
Article 4
Conduct barring limitation
Conduite supprimant la limitation
A person liable shall not be entitled to limit his liability if it is proved that the loss resulted from his personal act or omission, committed with the intent to cause such loss, or recklessly and with knowledge that such loss would probably result.
Une personne responsable n’est pas en droit de limiter sa responsabilité s’il est prouvé que le dommage résulte de son fait ou de son omission personnels, commis avec l’intention de provoquer un tel dommage, ou commis témérairement et avec conscience qu’un tel dommage en résulterait probablement.
[28] Thus, Article 2 describes the claims that are subject to limitation. Specifically, it states that subject to Articles 3 and 4, the claims listed, whatever the basis of liability may be, shall be subject to limitation of liability. For the purposes of these motions, the most relevant provision is claims in respect of damage to property in direct connection with the operation of the ship and consequential loss resulting therefrom (Article 2(1)(a)). Another potentially relevant provision is claims in respect of other loss resulting from infringement of rights occurring in direct connection with the operation of the ship (Article 2(1)(c)). Certain claims are exempted from limitation and these are set out in Article 3. For the purposes of these motions, it is of note that the LLMC does not apply to a claim for oil pollution damage within the meaning of the CLC (Article 3(b)). Further, a shipowner will be barred from limiting liability in the circumstances described in Article 4. The limits of liability for claims arising on any distinct occasion are determined by the ship’s tonnage and a calculation contained in Article 6.
[29] Article 9 concerns the aggregation of claims:
Article 9
Article 9
Aggregation of claims
Concours de créances
1 The limits of liability determined in accordance with Article 6 shall apply to the aggregate of all claims which arise on any distinct occasion:
1 Les limites de la responsabilité déterminée selon l’article 6 s’appliquent à l’ensemble de toutes les créances nées d’un même événement :
(a) against the person or persons mentioned in paragraph 2 of Article 1 and any person for whose act, neglect or default he or they are responsible; or
a) à l’égard de la personne ou des personnes visées au paragraphe 2 de l’article premier et de toute personne dont les faits, négligences ou fautes entraînent la responsabilité de celle-ci ou de celles-ci; ou
[30] Article 11 speaks to the constitution of a limitation fund:
Article 11
Article 11
Constitution of the fund
Constitution du fonds
1 Any person alleged to be liable may constitute a fund with the Court or other competent authority in any State Party in which legal proceedings are instituted in respect of claims subject to limitation. The fund shall be constituted in the sum of such of the amounts set out in Articles 6 and 7 as are applicable to claims for which that person may be liable, together with interest thereon from the date of the occurrence giving rise to the liability until the date of the constitution of the fund. Any fund thus constituted shall be available only for the payment of claims in respect of which limitation of liability can be invoked.
1 Toute personne dont la responsabilité peut être mise en cause peut constituer un fonds auprès du tribunal ou de toute autre autorité compétente de tout État Partie dans lequel une action est engagée pour des créances soumises à limitation. Le fonds est constitué à concurrence du montant tel qu’il est calculé selon les dispositions des articles 6 et 7 applicables aux créances dont cette personne peut être responsable, augmenté des intérêts courus depuis la date de l’événement donnant naissance à la responsabilité jusqu’à celle de la constitution du fonds. Tout fonds ainsi constitué n’est disponible que pour régler les créances à l’égard desquelles la limitation de la responsabilité peut être invoquée.
2 A fund may be constituted, either by depositing the sum, or by producing a guarantee acceptable under the legislation of the State Party where the fund is constituted and considered to be adequate by the Court or other competent authority.
2 Un fonds peut être constitué, soit en consignant la somme, soit en fournissant une garantie acceptable en vertu de la législation de l’État Partie dans lequel le fonds est constitué, et considérée comme adéquate par le tribunal ou par toute autre autorité compétente.
3 A fund constituted by one of the persons mentioned in paragraph 1(a), (b) or (c) or paragraph 2 of Article 9 or his insurer shall be deemed constituted by all persons mentioned in paragraph 1(a), (b) or (c) or paragraph 2, respectively.
3 Un fonds constitué par l’une des personnes mentionnées aux alinéas a), b) ou c) du paragraphe 1 ou au paragraphe 2 de l’article 9, ou par son assureur, est réputé constitué par toutes les personnes visées aux alinéas a), b) ou c) du paragraphe 1 ou au paragraphe 2 respectivement.
[31] Article 12 speaks to the distribution of the fund and Article 13 bars other actions, stating that “where a limitation fund has been constituted in accordance with Article 11, any person having made a claim against the fund shall be barred from exercising any right in respect of such claim against any other assets of a person by or on behalf of whom the fund has been constituted”.
[32] Returning now to the main body of the MLA, Part 6 of that Act deals with liability and compensation for pollution. It too incorporates into Canadian law various international conventions to which Canada is a signatory, including the CLC and the Bunkers Convention.
PART 6
PARTIE 6
Liability and Compensation for Pollution
Responsabilité et indemnisation en matière de pollution
DIVISION 1
SECTION 1
International Conventions
Conventions internationales
Interpretation
Définitions et interprétation
Definitions
Définitions
47 (1) The following definitions apply in this Division.
47 (1) Les définitions qui suivent s’appliquent à la présente section.
Bunkers Convention means the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001, concluded at London on March 23, 2001. (Convention sur les hydrocarbures de soute)
Convention sur les hydrocarbures de soute La Convention internationale de 2001 sur la responsabilité civile pour les dommages dus à la pollution par les hydrocarbures de soute, conclue à Londres le 23 mars 2001. (Bunkers Convention)
Civil Liability Convention means the International Convention on Civil Liability for Oil Pollution Damage, 1992, concluded at London on November 27, 1992, Article V of which was amended by the Resolution adopted by the Legal Committee of the International Maritime Organization on October 18, 2000. (Convention sur la responsabilité civile)
Convention sur la responsabilité civile La Convention internationale de 1992 sur la responsabilité civile pour les dommages dus à la pollution par les hydrocarbures, conclue à Londres le 27 novembre 1992, dont l’article V a été modifié par la résolution adoptée par le Comité juridique de l’Organisation maritime internationale le 18 octobre 2000. (Civil Liability Convention)
discharge, in relation to oil and bunker oil, means a discharge of oil or bunker oil that directly or indirectly results in the oil or bunker oil entering the water, and includes spilling, leaking, pumping, pouring, emitting, emptying, throwing and dumping. (rejet)
rejet S’agissant d’un hydrocarbure ou d’un hydrocarbure de soute, rejet d’un hydrocarbure ou d’un hydrocarbure de soute qui, directement ou indirectement, atteint l’eau, notamment par déversement, fuite, déchargement ou chargement par pompage, rejet liquide, émanation, vidange, rejet solide et immersion. (discharge)
Fund Convention means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992, concluded at London on November 27, 1992, Article 4 of which was amended by the Resolution adopted by the Legal Committee of the International Maritime Organization on October 18, 2000. (Convention sur le Fonds international)
Convention sur le Fonds international La Convention internationale de 1992 portant création d’un Fonds international d’indemnisation pour les dommages dus à la pollution par les hydrocarbures, conclue à Londres le 27 novembre 1992, dont l’article 4 a été modifié par la résolution adoptée par le Comité juridique de l’Organisation maritime internationale le 18 octobre 2000. (Fund Convention)
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International Fund means the International Oil Pollution Compensation Fund, 1992 established by Article 2 of the Fund Convention. (Fonds international)
Fonds international Le Fonds international d’indemnisation de 1992 pour les dommages dus à la pollution par les hydrocarbures constitué par l’article 2 de la Convention sur le Fonds international. (International Fund)
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Supplementary Fund means the International Oil Pollution Compensation Supplementary Fund, 2003 established by Article 2 of the Supplementary Fund Protocol. (Fonds complémentaire)
Fonds complémentaire Le Fonds complémentaire international d’indemnisation de 2003 pour les dommages dus à la pollution par les hydrocarbures constitué par l’article 2 du Protocole portant création d’un Fonds complémentaire. (Supplementary Fund)
Supplementary Fund Protocol means the Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992, concluded at London on May 16, 2003. (Protocole portant création d’un Fonds complémentaire)
Protocole portant création d’un Fonds complémentaire Le Protocole de 2003 à la Convention internationale de 1992 portant création d’un Fonds international d’indemnisation pour les dommages dus à la pollution par les hydrocarbures, conclu à Londres le 16 mai 2003. (Supplementary Fund Protocol)
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Civil Liability Convention
Convention sur la responsabilité civile
Force of law
Force de loi
48 Articles I to XI, XII bis and 15 of the Civil Liability Convention – that are set out in Schedule 5 – have the force of law in Canada.
48 Les articles I à XI, XII bis et 15 de la Convention sur la responsabilité civile – lesquels figurent à l’annexe 5 – ont force de loi au Canada.
Contracting State
État contractant
49 (1) For the purposes of the application of the Civil Liability Convention, Canada is a Contracting State.
49 (1) Pour l’application de la Convention sur la responsabilité civile, le Canada est un État contractant.
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Admiralty Court’s jurisdiction – limitation fund
Compétence exclusive de la Cour d’amirauté
52 (1) The Admiralty Court has exclusive jurisdiction with respect to any matter relating to the constitution and distribution of a limitation fund under the Civil Liability Convention.
52 (1) La Cour d’amirauté a compétence exclusive pour trancher toute question relative à la constitution et à la répartition du fonds de limitation aux termes de la Convention sur la responsabilité civile.
Right to assert limitation defence
Droit d’invoquer la limite de responsabilité
(2) When a claim is made or apprehended against a person in respect of liability that is limited under t