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Bill C-7

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2nd Session, 40th Parliament,
57 Elizabeth II, 2009
house of commons of canada
BILL C-7
An Act to amend the Marine Liability Act and the Federal Courts Act and to make consequential amendments to other Acts
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
2001, c. 6
MARINE LIABILITY ACT
1. Section 24 of the Marine Liability Act is amended by adding the following in alphabetical order:
“passenger”
« passager »
“passenger” means
(a) a person carried on board a ship in circumstances described in paragraph 2(a) or (b) of Article 7 of the Convention;
(b) a participant in an adventure tourism activity referred to in subsection 37.1(1);
(c) a person carried on board a vessel propelled manually by paddles or oars; and
(d) a sail trainee.
“unit of account”
« unités de compte »
“unit of account” means a special drawing right issued by the International Monetary Fund.
2. Section 26 of the Act is replaced by the following:
Force of law
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.
Amendments to Part 3 of Schedule 1
(2) The Governor in Council may, by regulation, amend Part 3 of Schedule 1 to add or delete a reservation made by Canada under Article 18 of the Convention.
Exceptions
(3) This Part does not apply to a claim that is the subject of a reservation made by Canada.
2001, c. 26, s. 324(2)
3. Sections 28 and 29 of the Act are replaced by the following:
Passenger claims
28. (1) The maximum liability for maritime claims that arise on any distinct occasion for loss of life or personal injury to passengers of a ship of less than 300 gross tonnage is the greater of
(a) 2 000 000 units of account, and
(b) 175 000 units of account multiplied by
(i) the number of passengers that the ship is authorized to carry according to any Canadian maritime document required under the Canada Shipping Act, 2001, or
(ii) the number of passengers on board the ship, if no Canadian maritime document is required under that Act.
Claims — no contract of carriage
(2) The maximum liability for maritime claims that arise on any distinct occasion for loss of life or personal injury to persons carried on board a ship of less than 300 gross tonnage otherwise than under a contract of passenger carriage is the greater of
(a) 2 000 000 units of account, and
(b) 175 000 units of account multiplied by
(i) the number of passengers that the ship is authorized to carry according to any Canadian maritime document required under the Canada Shipping Act, 2001, or
(ii) the number of persons on board the ship, if no Canadian maritime document is required under that Act.
Exception
(3) Subsection (2) does not apply in respect of
(a) the master of a ship, a member of a ship’s crew — or any other person employed or engaged in any capacity on the business of a ship — when they are carried on board the ship;
(b) a person carried on board a ship other than a ship operated for a commercial or public purpose;
(c) a person carried on board a ship in pursuance of the obligation on the master to carry shipwrecked, distressed or other persons or by reason of any circumstances that neither the master nor the owner could have prevented; or
(d) a person who is a member of a class of persons prescribed under paragraph 34.1(a).
Other claims
29. The maximum liability for maritime claims that arise on any distinct occasion involving a ship of less than 300 gross tonnage, other than claims referred to in section 28, is
(a) $1,000,000 in respect of claims for loss of life or personal injury; and
(b) $500,000 in respect of any other claims.
Calculation of tonnage
29.1 For the purposes of sections 28 and 29, a ship’s gross tonnage shall be calculated in accordance with the tonnage measurement rules contained in Annex I of the International Convention on Tonnage Measurement of Ships, 1969, concluded at London on June 23, 1969, including any amendments, whenever they are made, to the Annexes or Appendix to that Convention.
4. Subsection 30(2) of the Act is replaced by the following:
Calculation of tonnage
(2) For the purposes of subsection (1), a ship’s gross tonnage shall be calculated in the manner described in section 29.1.
5. Section 31 of the Act is replaced by the following:
Amendment of limits
31. (1) The Governor in Council may, by regulation, amend Schedule 1 to implement an amendment that is made in accordance with Article 8 of the Protocol to any of the limits of liability that are specified in paragraph 1 of Article 6 or paragraph 1 of Article 7 of the Convention.
Amendment of sections 28, 29 and 30
(2) The Governor in Council may, by regulation, amend the limits of liability set out in sections 28, 29 and 30.
6. The Act is amended by adding the following after section 34:
Regulations
Governor in Council
34.1 The Governor in Council may make regulations
(a) prescribing classes of persons for the purpose of paragraph 28(3)(d); and
(b) generally for carrying out the purposes and provisions of this Part.
7. (1) Paragraph 36(1)(a) of the Act is replaced by the following:
(a) the definition “ship” in Article 1 of the Convention shall be read as including any vessel or craft designed, used or capable of being used solely or partly for navigation, whether seagoing or not, but not including an air cushion vehicle or a vessel propelled manually by paddles or oars; and
(2) Section 36 of the Act is amended by adding the following after subsection (2):
Inconsistency
(3) In the event of any inconsistency between this section and sections 35 and 37 to 40 of this Act and Articles 1 to 22 of the Convention, those sections prevail to the extent of the inconsistency.
8. Paragraph 37(2)(b) of the Act is amended by striking out “and” at the end of subparagraph (i), by adding “and’’ at the end of subparagraph (ii) and by adding the following after subparagraph (ii):
(iii) a person carried on board a ship in pursuance of the obligation on the master to carry shipwrecked, distressed or other persons or by reason of any circumstances that neither the master nor the owner could have prevented.
9. The Act is amended by adding the following after section 37:
Exception — adventure tourism activities
37.1 (1) This Part does not apply to an adventure tourism activity that meets the following conditions:
(a) it exposes participants to an aquatic environment;
(b) it normally requires safety equipment and procedures beyond those normally used in the carriage of passengers;
(c) participants are exposed to greater risks than passengers are normally exposed to in the carriage of passengers;
(d) its risks have been presented to the participants and they have accepted in writing to be exposed to them; and
(e) any condition prescribed under paragraph 39(c).
Exception — persons
(2) This Part does not apply to the carriage of a sail trainee or a person who is a member of a class of persons prescribed under paragraph 39(d).
10. Sections 39 and 40 of the Act are replaced by the following:
Governor in Council
39. The Governor in Council may make regulations
(a) respecting insurance or other financial security to be maintained in respect of classes of carriage, ships or persons to cover liability under this Part up to the maximum amount set out in it;
(b) respecting the form and manner in which proof of insurance or other financial security is provided;
(c) prescribing any condition for the purpose of subsection 37.1(1);
(d) prescribing classes of persons for the purpose of subsection 37.1(2); and
(e) generally for carrying out the purposes and provisions of this Part.
Amendment of limits
40. The Governor in Council may, by regulation, amend Schedule 2 to implement an amendment that is made in accordance with Article VIII of the Protocol to any of the limits of liability that are specified in paragraph 1 of Article 7 or in Article 8 of the Convention, including the deductibles referred to in that Article 8.
2001, c. 26, ss. 324(4) to (6), c. 27, s. 273.1(2); SOR/2003-353; 2003, c. 22, par. 225(z.6)(E)
11. The heading “Interpretation” before section 47 and sections 47 to 131 of the Act are replaced by the following:
Division 1




Explanatory Notes
Marine Liability Act
Clause 1: New.
Clause 2: Existing text of section 26:
26. Subject to the other provisions of this Part, Articles 1 to 15 of the Convention have the force of law in Canada.
Clause 3: Existing text of sections 28 and 29:
28. (1) The maximum liability for maritime claims that arise on any distinct occasion involving a ship with a gross tonnage of less than 300 tons, other than claims mentioned in section 29, is
(a) $1,000,000 in respect of claims for loss of life or personal injury; and
(b) $500,000 in respect of any other claims.
(2) For the purposes of subsection (1), a ship’s gross tonnage shall be calculated in accordance with the tonnage measurement rules contained in Annex I of the International Convention on Tonnage Measurement of Ships, 1969, concluded at London on June 23, 1969, including any amendments, whenever made, to the Annexes or Appendix to that Convention.
29. (1) The maximum liability for maritime claims that arise on any distinct occasion for loss of life or personal injury to passengers of a ship for which no Canadian maritime document is required under Part 4 of the Canada Shipping Act, 2001 is the greater of
(a) 2,000,000 units of account, and
(b) the number of units of account calculated by multiplying 175,000 units of account by the number of passengers on board the ship.
(2) Notwithstanding Article 6 of the Convention, the maximum liability for maritime claims that arise on any distinct occasion for loss of life or personal injury to persons carried on a ship otherwise than under a contract of passenger carriage is the greater of
(a) 2,000,000 units of account, and
(b) 175,000 units of account multiplied by
(i) the number of passengers that the ship is authorized to carry according to its certificate under Part 4 of the Canada Shipping Act, 2001, or
(ii) if no certificate is required under that Part, the number of persons on board the ship.
(3) Subsection (2) does not apply in respect of
(a) the master of a ship, a member of a ship’s crew or any other person employed or engaged in any capacity on board a ship on the business of a ship; or
(b) a person carried on board a ship other than a ship operated for a commercial or public purpose.
(4) In subsection (1), “passenger” means a person carried on a ship in circumstances described in paragraph 2(a) or (b) of Article 7 of the Convention.
(5) In subsections (1) and (2), “unit of account” means a special drawing right issued by the International Monetary Fund.
Clause 4: Existing text of subsection 30(2):
(2) For the purposes of subsection (1), a ship’s gross tonnage shall be calculated in the manner described in subsection 28(2).
Clause 5: Existing text of section 31:
31. (1) The Governor in Council may, by order, declare that an amendment made in accordance with Article 8 of the Protocol to any of the limits of liability specified in paragraph 1 of Article 6 or paragraph 1 of Article 7 of the Convention has the force of law in Canada.
(2) The Governor in Council may, by order, amend the limits of liability set out in sections 28, 29 and 30.
Clause 6: New.
Clause 7: (1) Relevant portion of subsection 36(1):
36. (1) For the purposes of this Part and Articles 1 to 22 of the Convention,
(a) the definition “ship” in Article 1 of the Convention shall be read as including 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 whether seagoing or not, but not including an air cushion vehicle; and
(2) New.
Clause 8: Relevant portion of subsection 37(2):
(2) Articles 1 to 22 of the Convention also apply in respect of
...
(b) the carriage by water, otherwise than under a contract of carriage, of persons or of persons and their luggage, excluding
Clause 9: New.
Clause 10: Existing text of sections 39 and 40:
39. The Governor in Council may make regulations requiring insurance or other financial security to be maintained to cover liability to passengers under this Part.
40. The Governor in Council may, by order, declare that an amendment made in accordance with Article VIII of the Protocol to any of the limits of liability specified in paragraph 1 of Article 7 or in Article 8 of the Convention, including the deductibles referred to in Article 8, has the force of law in Canada.
Clause 11: Existing text of the heading and sections 47 to 131:
Interpretation
47. The definitions in this section apply in this Part.
“Administrator” means the Administrator of the Ship-source Oil Pollution Fund appointed under section 79.
“Civil Liability Convention” means the International Convention on Civil Liability for Oil Pollution Damage, concluded at Brussels on November 29, 1969, as amended by the Protocol concluded at London on November 19, 1976 and the Protocol concluded at London on November 27, 1992.
“Convention ship” means a seagoing ship, wherever registered,
(a) carrying, in bulk as cargo, crude oil, fuel oil, heavy diesel oil, lubricating oil or any other persistent hydrocarbon mineral oil; or
(b) on a voyage following any such carriage of such oil, unless it is proved that there is no residue of the oil on board.
“discharge”, in relation to a pollutant, means any discharge of the pollutant that directly or indirectly results in the pollutant entering the water, and includes spilling, leaking, pumping, pouring, emitting, emptying, throwing and dumping.
“Fund Convention” means the International Convention on the Establishment of the International Fund for Compensation for Oil Pollution Damage, concluded at Brussels on December 18, 1971, as amended by the Protocol concluded at London on November 19, 1976 and the Protocol concluded at London on November 27, 1992.
“guarantor” means a guarantor under a contract of liability insurance or other similar security relating to a shipowner’s liability under section 51.
“in bulk” means in a hold or tank that is part of the structure of a ship, without any intermediate form of containment.
“International Fund” means the International Oil Pollution Compensation Fund established by the Fund Convention.
“Limitation of Liability Convention” has the meaning ascribed to the word “Convention” in section 24.
“oil”, except in sections 93 to 99, means oil of any kind or in any form and includes petroleum, fuel oil, sludge, oil refuse and oil mixed with wastes but does not include dredged spoil.
“oil pollution damage”, in relation to any ship, means loss or damage outside the ship caused by contamination resulting from the discharge of oil from the ship.
“owner” means
(a) in relation to a Convention ship, the person who is registered as the owner of the ship or, if no person is so registered,
(i) the person who owns the ship, or
(ii) if the ship is owned by a state and operated by a company that is registered as the ship’s operator in that state, that company; or
(b) in relation to any other ship, the person who has for the time being, either by law or by contract, the rights of the owner of the ship with respect to its possession and use.
“pollutant” means
(a) a substance that, if added to any waters, would degrade or alter or form part of a process of degradation or alteration of the quality of the waters to an extent that is detrimental to their use by humans or by an animal or plant that is useful to humans; and
(b) any water that contains a substance in such a quantity or concentration, or that has been so treated, processed or changed, by heat or other means, from a natural state that it would, if added to any waters, degrade or alter or form part of a process of degradation or alteration of the quality of the waters to an extent that is detrimental to their use by humans or by an animal or plant that is useful to humans,
and includes oil and any substance or class of substances identified by the regulations as a pollutant for the purposes of this Part.
“pollution damage”, in relation to any ship, means loss or damage outside the ship caused by contamination resulting from the discharge of a pollutant from the ship.
“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
(a) a ship in the process of construction from the time that it is capable of floating; and
(b) a ship that has been stranded, wrecked or sunk and any part of a ship that has broken up.
“Ship-source Oil Pollution Fund” means the Ship-source Oil Pollution Fund established by section 77.
Application
48. (1) For ships other than Convention ships, this Part applies in respect of actual or anticipated pollution damage, irrespective of the location of the actual or anticipated discharge of the pollutant and irrespective of the location where any preventive measures are taken,
(a) on the territory of Canada or in Canadian waters; or
(b) in the exclusive economic zone of Canada.
(2) For Convention ships, this Part applies, subject to subsection (3), in respect of actual or anticipated oil pollution damage, irrespective of the location of the actual or anticipated discharge of the oil and irrespective of the location where any preventive measures are taken,
(a) on the territory of Canada or in Canadian waters;
(b) in the exclusive economic zone of Canada;
(c) on the territory or in the territorial sea or internal waters of a state other than Canada that is a party to the Civil Liability Convention; or
(d) in the exclusive economic zone of a state referred to in paragraph (c) or, if the state has not established an exclusive economic zone, in an area beyond and adjacent to the territorial sea of that state and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured.
(3) Sections 84 and 85 do not apply in respect of actual or anticipated oil pollution damage in an area described in paragraph (2)(c) or (d).
49. (1) This Part does not apply to a drilling ship that is on location and engaged in the exploration or exploitation of the sea-bed or its subsoil in so far as a discharge of a pollutant emanates from those activities.
(2) This Part does not apply to a floating storage unit or floating production, storage and offloading unit unless it is carrying oil as a cargo on a voyage to or from a port or terminal outside an offshore oil field.
50. In the event of an inconsistency between the provisions of this Part and the provisions of the Arctic Waters Pollution Prevention Act or any regulations made under that Act, the provisions of this Part prevail to the extent of the inconsistency.
Division 1
Civil Liability for Pollution
Owners of Ships
51. (1) Subject to the other provisions of this Part, the owner of a ship is liable
(a) for oil pollution damage from the ship;
(b) for costs and expenses incurred by
(i) the Minister of Fisheries and Oceans,
(ii) a response organization within the meaning of section 165 of the Canada Shipping Act, 2001,
(iii) any other person in Canada, or
(iv) any person in a state, other than Canada, that is a party to the Civil Liability Convention,
in respect of measures taken to prevent, repair, remedy or minimize oil pollution damage from the ship, including measures taken in anticipation of a discharge of oil from the ship, to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures; and
(c) for costs and expenses incurred
(i) by the Minister of Fisheries and Oceans in respect of measures taken under paragraph 180(1)(a) of the Canada Shipping Act, 2001, in respect of any monitoring under paragraph 180(1)(b) of that Act or in relation to any direction given under paragraph 180(1)(c) of that Act, or
(ii) by any other person in respect of measures the person was directed to take or refrain from taking under paragraph 180(1)(c) of the Canada Shipping Act, 2001,
to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by those measures.
(2) If oil pollution damage from a ship results in impairment to the environment, the owner of the ship is liable for the costs of reasonable measures of reinstatement actually undertaken or to be undertaken.
(3) The owner’s liability under subsection (1) does not depend on proof of fault or negligence, but the owner is not liable under that subsection if the owner establishes that the occurrence
(a) resulted from an act of war, hostilities, civil war or insurrection or from a natural phenomenon of an exceptional, inevitable and irresistible character;
(b) was wholly caused by an act or omission of a third party with intent to cause damage; or
(c) was wholly caused by the negligence or other wrongful act of any government or other authority responsible for the maintenance of lights or other navigational aids, in the exercise of that function.
(4) Nothing in this Part shall be construed as limiting or restricting any right of recourse that the owner of a ship who is liable under subsection (1) may have against another person.
(5) Costs and expenses incurred by the owner of a ship in respect of measures voluntarily taken by the owner to prevent, repair, remedy or minimize oil pollution damage from the ship, including measures taken in anticipation of a discharge of oil from the ship, to the extent that the measures taken and the costs and expenses are reasonable, rank equally with other claims against any security given by that owner in respect of the owner’s liability under this section.
(6) No action lies in respect of a matter referred to in subsection (1) unless it is commenced
(a) if pollution damage occurred, before the earlier of
(i) three years after the day on which the pollution damage occurred, and
(ii) six years after the occurrence that caused the pollution damage or, if the pollution damage was caused by more than one occurrence having the same origin, six years after the first of the occurrences; or
(b) if no pollution damage occurred, within six years after the occurrence.
52. (1) Subject to section 59, all claims under this Part may be sued for and recovered in the Admiralty Court.
(2) Subject to subsection (3), the jurisdiction conferred on the Admiralty Court by subsection (1) may be exercised in rem against the ship that is the subject of the claim, or against any proceeds of sale of the ship that have been paid into court.
(3) No action in rem may be commenced in Canada against
(a) a warship, coast guard ship or police vessel;
(b) a ship owned or operated by Canada or a province, or any cargo carried on such a ship, if the ship is engaged on government service; or
(c) a ship owned or operated by a state other than Canada, or any cargo carried on such a ship, with respect to a claim if, at the time the claim arose or the action is commenced, the ship was being used exclusively for non-commercial governmental purposes.
53. (1) If there is an occurrence that gives rise to liability of an owner of a ship under subsection 51(1),
(a) the Administrator may, either before or after receiving a claim under section 85, commence an action in rem against the ship that is the subject of the claim, or against any proceeds of sale of the ship that have been paid into court; and
(b) subject to subsection (3), the Administrator is entitled in any such action to claim security in an amount not less than the owner’s maximum aggregate liability under section 54 or 55.
(2) The Administrator may continue an action referred to in subsection (1) only if the Administrator has become subrogated to the rights of the claimant under subsection 87(3).
(3) The Administrator is not entitled to claim security under subsection (1) if
(a) in the case of a Convention ship, a fund has been constituted under section 58; and
(b) in the case of any other ship, a fund has been constituted under Article 11 of the Limitation of Liability Convention.
54. (1) The maximum liability under section 51 of an owner of a Convention ship in respect of an occurrence is
(a) if the ship has a tonnage of not more than 5,000 tons, 4,510,000 units of account; and
(b) if the ship has a tonnage of more than 5,000 tons, 4,510,000 units of account for the first 5,000 tons and 631 units of account for each additional ton, not exceeding 89,770,000 units of account in the aggregate.
(2) An owner is not entitled to limitation of liability under subsection (1) if it is proved that the actual or anticipated oil pollution damage resulted from the personal act or omission of the owner, committed with the intent to cause the oil pollution damage or recklessly and with knowledge that the oil pollution damage would probably result.
(3) For the purpose of subsection (1), a ship’s tonnage is the gross tonnage calculated in accordance with the tonnage measurement rules contained in Annex I of the International Convention on Tonnage Measurement of Ships, 1969, concluded at London on June 23, 1969, including any amendments, whenever made, to the Annexes or Appendix to that Convention.
(4) In paragraphs (1)(a) and (b), “unit of account” means a special drawing right issued by the International Monetary Fund.
(5) If amendments to the limits of liability specified in paragraph 1 of Article V of the Civil Liability Convention are made in accordance with Article 15 of the Protocol of 1992 concluded at London on November 27, 1992, the Governor in Council may, by order, on the recommendation of the Minister, amend the limits of liability set out in subsection (1) by the same amounts.
55. The maximum liability under section 51 of an owner of a ship other than a Convention ship in respect of an occurrence shall be as determined in accordance with Part 3.
Special Rules — Convention Ships
56. No action may be commenced in a court in Canada in relation to an occurrence that gives rise to liability of an owner of a Convention ship in respect of matters referred to in subsection 51(1) if
(a) the occurrence does not result in oil pollution damage on the territory of Canada, in Canadian waters or in the exclusive economic zone of Canada; and
(b) no costs, expenses, loss or damage described in paragraph 51(1)(b) or (c) are incurred in respect of actual or anticipated oil pollution damage in any of the areas described in paragraph (a).
57. (1) The owner of a Convention ship is not liable for the matters referred to in subsection 51(1) otherwise than as provided by this Part.
(2) Subject to subsection 51(4), none of the following persons is liable for the matters referred to in subsection 51(1) unless the actual or anticipated oil pollution damage resulted from a personal act or omission of theirs that was committed with intent to cause the damage or was committed recklessly and with knowledge that the damage would probably result:
(a) a servant or an agent of the owner of a Convention ship or one of its crew members;
(b) the pilot of a Convention ship or any other person who, without being a member of the crew, performs services for the Convention ship;
(c) a charterer, a manager or an operator of a Convention ship;
(d) any person using a Convention ship to perform salvage operations with the consent of the owner or on the instructions of a competent public authority;
(e) a person taking measures to prevent oil pollution damage from a Convention ship; or
(f) a servant or an agent of a person referred to in any of paragraphs (c) to (e).
(3) If two or more owners of Convention ships are liable for costs, expenses, loss or damage referred to in subsection 51(1), the owners of all those ships are jointly and severally liable, to the extent that the costs, expenses, loss or damage are not reasonably separable.
58. (1) The owner of a Convention ship is not entitled to limitation of liability under subsection 54(1) unless the owner constitutes a fund, in this section referred to as the “shipowner’s fund”, in an amount equal to the limit of the owner’s liability under that subsection.
(2) A shipowner’s fund may be constituted by the owner of a ship
(a) making a payment into court of the amount described in subsection (1); or
(b) filing with the court a guarantee or other security satisfactory to the court.
(3) A shipowner’s fund shall be distributed among claimants in proportion to the amount of their established claims as determined by the court.
(4) If, before the distribution of a shipowner’s fund, the owner of the Convention ship, or anyone on behalf of the owner, pays compensation in respect of any matters referred to in subsection 51(1) as a result of the occurrence in question, the person who pays the compensation is subrogated to the rights that the person compensated would have had under this Part.
(5) If the owner of a Convention ship, or a person who pays compensation on behalf of the owner, satisfies the court that, because of a claim that might later be established before a court of a state other than Canada that is not a party to the Civil Liability Convention,
(a) they may be compelled to pay compensation mentioned in subsection (4) after the distribution of the shipowner’s fund, and
(b) they would enjoy a right of subrogation under subsection (4) if the compensation were paid before the distribution of the shipowner’s fund,
the court may postpone the distribution of the portion of the shipowner’s fund that it considers appropriate, having regard to the possibility that such a claim might be established.
59. If the owner of a Convention ship has constituted a shipowner’s fund under section 58 with a court of a state other than Canada that is a party to the Civil Liability Convention, no action may be commenced or continued in any court in Canada in relation to the same occurrence in respect of matters referred to in subsection 51(1).
60. (1) A Convention ship carrying, in bulk as cargo, more than 2,000 metric tons of crude oil, fuel oil, heavy diesel oil, lubricating oil or any other persistent hydrocarbon mineral oil shall not
(a) enter or leave a port in Canadian waters or in the exclusive economic zone of Canada or arrive at or leave an offshore terminal in Canadian waters or in the exclusive economic zone of Canada, or
(b) if the ship is registered in Canada, enter or leave a port in any other state, whether or not the state is a party to the Civil Liability Convention, or arrive at or leave an offshore terminal
(i) in the territorial sea or internal waters of any such state, or
(ii) in the exclusive economic zone of any such state or, if the state has not established an exclusive economic zone, in an area beyond and adjacent to the territorial sea of the state, and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured
unless a certificate described in Article VII of the Civil Liability Convention and subsection 61(1) has been issued in respect of the ship, showing that a contract of insurance or other security satisfying the requirements of that Article is in force in respect of the ship.
(2) In relation to a Convention ship owned by a state that is a party to the Civil Liability Convention and being used for commercial purposes, it is a sufficient compliance with subsection (1) if there is in force a certificate issued by the government of the state showing that the ship is owned by that state and that any liability for pollution damage as defined in Article I of that Convention will be met up to the limit stipulated in Article V of that Convention.
(3) A certificate referred to in subsection (1) or (2) must be carried on board the Convention ship to which it relates.
(4) The master of a Convention ship or any other person on board shall produce the certificate or give details of it at the request of any authorized officer of the Government of Canada.
61. (1) The certificate referred to in subsection 60(1)
(a) must be a certificate issued by the Minister, if the Convention ship is registered in Canada;
(b) must be a certificate issued by or under the authority of the government of the state of registration, if the Convention ship is registered in a state other than Canada that is a party to the Civil Liability Convention; or
(c) must be a certificate issued or recognized by the Minister, if the Convention ship is registered in a state other than Canada that is not a party to the Civil Liability Convention.
(2) On an application to the Minister for a certificate referred to in subsection 60(1) in respect of a Convention ship registered in Canada or registered in a state other than Canada that is not a party to the Civil Liability Convention, the Minister shall, subject to subsection (3), issue such a certificate to the owner of the ship if the Minister is satisfied that a contract of insurance or other security satisfying the requirements of Article VII of the Civil Liability Convention will be in force in respect of the ship throughout the period for which the certificate is issued.
(3) If the Minister believes that the guarantor will be unable to meet the guarantor’s obligations under the contract of insurance or other security referred to in subsection 60(1), or that the insurance or other security will not cover the owner’s liability under section 51, the Minister may refuse to issue the certificate referred to in subsection 60(1).
62. A claimant may commence an action against a guarantor of the owner of a Convention ship in respect of a matter referred to in subsection 51(1) and, in that event,
(a) the guarantor is entitled to establish the defences affecting the owner’s liability set out in subsection 51(3) and, in addition, may establish as a defence that the occurrence resulted from the wilful misconduct of the owner;
(b) the guarantor may not plead as a defence the bankruptcy or winding-up of the owner;
(c) irrespective of whether the owner is entitled to limitation of liability, the guarantor is entitled to limitation of liability in respect of claims made by virtue of this section to the same amount and in like manner as an owner is entitled to limitation of liability under this Part; and
(d) if the owner of a Convention ship and the guarantor each applies to the Admiralty Court in accordance with subsection 58(2) in order to limit their liability, any amount paid into court or filed as a guarantee pursuant to either application shall be treated as paid or filed also pursuant to the other application.
Registration of Foreign Judgments
63. The definitions in this section apply in this section and in sections 64 to 71.
“foreign judgment” means a judgment of a court of a state other than Canada that is a party to the Civil Liability Convention in respect of a liability described in Article III of that Convention, resulting from an occurrence after the entry into force of that Convention for Canada.
“judgment creditor” means a person in whose favour a foreign judgment was rendered, and includes the person’s assigns, heirs, executors, liquidators of the succession, administrators and other legal representatives.
“judgment debtor” means a person against whom a foreign judgment was rendered, and includes a person against whom the foreign judgment is enforceable under the law of the state in which it was rendered.
64. (1) If a foreign judgment has been rendered, the judgment creditor may, at any time during which the foreign judgment is enforceable in the state in which it was rendered, apply to the Admiralty Court in accordance with its rules to have the foreign judgment registered in that Court.
(2) On an application made under subsection (1), the Admiralty Court may, subject to subsections (3) and (4) and section 67, order the registration of the foreign judgment if it is satisfied
(a) that a case for registration has been made; and
(b) that the foreign judgment is not under appeal and is no longer subject to appeal in the state in which it was rendered.
(3) If, under the rules of the Admiralty Court, the judgment debtor appears at the hearing of an application made under subsection (1), that Court may not order the registration of the foreign judgment if it is satisfied that
(a) the foreign judgment has been fully satisfied;
(b) the foreign court acted without jurisdiction;
(c) the foreign judgment was obtained by fraud; or
(d) the defendant in the foreign action was not given reasonable notice and a fair opportunity to present their case.
(4) On any application made under subsection (1), if the Court is satisfied that the foreign judgment has been partly satisfied, the foreign judgment shall be ordered to be registered only in respect of the balance remaining payable.
65. For the purpose of section 64, a foreign judgment includes any interest, up to the day of registration, that has accrued on it under the law of the state in which it was rendered.
66. Reasonable costs incurred by the judgment creditor related to the registration of the foreign judgment, including the cost of obtaining an exemplification or certified copy of it from the foreign court, are recoverable in the same manner as if they were amounts payable under the foreign judgment, and the costs shall be taxed by an assessment officer of the Admiralty Court and the assessment endorsed on the order for registration.
67. (1) A foreign judgment expressed in a currency other than Canadian currency cannot be registered under section 64 until the Admiralty Court has determined the equivalent amount in Canadian currency on the basis of the rate of exchange prevailing on the day on which the foreign judgment was rendered, as ascertained from any bank in Canada, and, for the purpose of making that determination, that Court may require the judgment creditor to provide any evidence of the applicable rate of exchange that that Court considers necessary.
(2) When the equivalent amount in Canadian currency has been determined in accordance with subsection (1), the Admiralty Court shall certify on the order for registration the amount so determined, and the foreign judgment, when registered, is deemed to be a judgment for payment of the amount so certified.
68. Subject to section 69, a foreign judgment registered under section 64 has, as of the date of registration, the same force and effect as a judgment of the Admiralty Court rendered on that date.
69. If a foreign judgment is registered under section 64 after an ex parte hearing, execution of the registered judgment may not issue until the expiry of 30 days after the judgment debtor has been served with a notice of registration of the foreign judgment in the manner set out in the rules of the Admiralty Court for the service of originating documents.
70. (1) At any time after a foreign judgment has been registered under section 64, the judgment debtor may apply to the Admiralty Court, in accordance with its rules, to have the registration of the judgment set aside on any of the grounds set out in subsection (2).
(2) On an application by a judgment debtor under subsection (1), the Admiralty Court shall set aside the registration of the foreign judgment if it is satisfied that
(a) the foreign judgment had been fully or partly satisfied;
(b) the foreign court acted without jurisdiction;
(c) the foreign judgment was obtained by fraud;
(d) the defendant in the foreign action was not given reasonable notice and a fair opportunity to present their case;
(e) the registration of the foreign judgment was obtained by fraud;
(f) an error was made in the conversion of the foreign judgment to Canadian currency under section 67;
(g) the registered judgment included interest on the foreign judgment to which the judgment creditor was not entitled; or
(h) for any other reason that Court erred in registering the foreign judgment.
(3) If the Admiralty Court sets aside the registration of a foreign judgment on the ground that it had been partly satisfied, or on a ground referred to in paragraph (2)(f) or (g), it shall order the foreign judgment to be registered in the reduced amount.
71. (1) At any time after a foreign judgment has been registered under section 64, the judgment debtor may apply to the Admiralty Court, in accordance with its rules, to have the execution of the registered judgment stayed on the grounds that an application to set aside the registration has been made under subsection 70(1), and, if that Court is satisfied that the application has been made, it may stay the execution of the judgment either absolutely or for the period and on the terms and conditions that it considers appropriate, and may, on further evidence, vary or terminate a stay of execution.
(2) Execution of a registered judgment may not be stayed except on the grounds that an application to set aside the registration has been made under subsection 70(1).
Division 2
Compensation for Pollution
International Oil Pollution Compensation Fund
72. For the purposes of the rights and obligations described in this Part, the International Fund has the capacity, rights and obligations of a natural person, and the Director of the International Fund is its legal representative.
73. If a claimant commences an action against the owner of a Convention ship or the owner’s guarantor in respect of a matter referred to in subsection 51(1),
(a) the document commencing the proceedings shall be served on the International Fund and the International Fund is then a party to the proceedings; and
(b) the International Fund may appear and take any action that its Director considers appropriate for the proper administration of the International Fund.
74. In addition to any method of service permitted by the rules of the court in which a proceeding referred to in section 73 is commenced, service of documents on the International Fund under paragraph 73(a) may be effected by registered mail.
75. If there is an occurrence involving a Convention ship, to the extent that a claimant has been unable to obtain full compensation under this Part from the ship’s owner or the owner’s guarantor, the International Fund is, subject to the provisions of the Fund Convention, liable in accordance with Article 4 of that Convention.
76. (1) The Administrator shall direct payments to be made out of the Ship-source Oil Pollution Fund to the International Fund in accordance with Articles 10 and 12 of the Fund Convention.
(2) The Administrator shall communicate to the Director of the International Fund the information referred to in Article 15 of the Fund Convention in accordance with that Article and is liable for any financial loss to the International Fund as a result of the failure to so communicate.
(3) The Administrator may, for the purpose of subsection (2),
(a) at any reasonable time, enter any premises where the Administrator believes on reasonable grounds that there are any records, books, accounts, vouchers or other documents relating to information referred to in Article 15 of the Fund Convention;
(b) examine anything on the premises and copy or take away for further examination or copying any record, book, account, voucher or other document that the Administrator believes, on reasonable grounds, contains any such information; and
(c) require the owner, occupier or person in charge of the premises to give all reasonable assistance in connection with the examination and to answer all proper questions relating to the examination and, for that purpose, require the owner, occupier or person in charge to attend at the premises with the Administrator.
(4) No person shall obstruct or hinder the Administrator in the exercise of any powers under subsection (3) or knowingly make a false or misleading statement, either orally or in writing, to the Administrator while the Administrator is exercising those powers.
(5) Living quarters may not be entered under subsection (3) unless they are entered with the consent of the occupant or under the authority of a warrant issued under subsection (6).
(6) On ex parte application, a justice, within the meaning of section 2 of the Criminal Code, may issue a warrant authorizing the Administrator to enter living quarters, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that entry to the living quarters
(a) is necessary for the purposes of subsection (2); and
(b) has been refused or there are reasonable grounds to believe that it will be refused.
(7) If two bodies are affiliated with each other within the meaning of section 2 of the Canada Business Corporations Act, they are deemed to be “associated persons” for the purpose of the definition “Associated person” in subparagraph 2(b) of Article 10 of the Fund Convention.
Ship-source Oil Pollution Fund
77. (1) There is hereby established in the accounts of Canada an account known as the Ship-source Oil Pollution Fund.
(2) The following shall be credited to the Ship-source Oil Pollution Fund:
(a) all payments received under sections 93 and 99;
(b) interest computed in accordance with section 78; and
(c) any amounts recovered by the Administrator under paragraph 87(3)(c).
(3) The following shall be charged to the Ship-source Oil Pollution Fund:
(a) all amounts that are directed by the Administrator to be paid under section 76, paragraph 87(3)(a), paragraph 89(1)(a), subsection 89(6) or under a settlement;
(b) all amounts for which the Administrator is liable under subsection 76(2);
(c) all interest paid under section 101;
(d) all costs and expenses that are directed to be paid under section 82;
(e) the remuneration and expenses of assessors that are directed to be paid under subsection 89(2); and
(f) the amount of any judgment and any costs awarded against that Fund in litigation.
78. The Minister of Finance shall, at the times that the Governor in Council directs, credit to the Ship-source Oil Pollution Fund interest at a rate fixed by the Governor in Council on the balance from time to time to the credit of that Fund.
Administrator and Deputy Administrator
79. (1) The Governor in Council shall appoint an Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause.
(2) The Administrator is eligible for reappointment on the expiry of the Administrator’s term of office.
80. (1) The Administrator shall not, while holding office, accept or hold any office or employment inconsistent with the Administrator’s duties under this Part.
(2) If the Administrator contravenes subsection (1), the Administrator’s appointment as Administrator is terminated on a date fixed by the Governor in Council that is not later than 30 days after notice of the contravention is received by the Minister, but the contravention does not affect the validity of any act performed by the Administrator on behalf of the Ship-source Oil Pollution Fund between the date of the contravention and the date that the appointment is terminated under this subsection.
81. The Administrator may, for the purpose of performing duties under this Part, obtain the professional, technical and other advice and assistance that the Administrator considers necessary.
82. (1) On the direction of the Minister of Finance, all costs and expenses incurred by the Administrator in performing duties and functions under this Part, and fees for services rendered by the Administrator calculated in accordance with a tariff prescribed by the regulations, shall be paid out of the Consolidated Revenue Fund and charged to the Ship-source Oil Pollution Fund.
(2) Assessment officers of the Admiralty Court may, at the request of the Minister of Justice, tax any account for costs, expenses or fees submitted by the Administrator to the Minister of Finance as if the Administrator were acting for the Crown in proceedings in that Court, but, on any such taxation, no fee may be allowed in excess of that set out in the tariff referred to in subsection (1).
83. (1) The Governor in Council may appoint a Deputy Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause.
(2) The Deputy Administrator is eligible for reappointment on the expiry of the Deputy Administrator’s term of office.
(3) If the Administrator is absent or incapacitated or the office of Administrator is vacant, the Deputy Administrator has all the powers and duties of the Administrator.
(4) Sections 80 and 82 apply to the Deputy Administrator, with any modifications that the circumstances require.
Liability of Ship-source Oil Pollution Fund
84. Subject to the other provisions of this Part, the Ship-source Oil Pollution Fund is liable for the matters referred to in subsection 51(1) in relation to oil, if
(a) all reasonable steps have been taken to recover payment of compensation from the owner of the ship and, in the case of a Convention ship, from the International Fund and have been unsuccessful;
(b) the owner is not liable by reason of any of the defences described in subsection 51(3) and the International Fund is not liable either;
(c) the claim exceeds
(i) in the case of a Convention ship, the owner’s maximum liability under this Part to the extent that the excess is not recoverable from the International Fund, and
(ii) in the case of a ship other than a Convention ship, the owner’s maximum liability under Part 3;
(d) the owner is financially incapable of meeting the owner’s legal obligations under subsection 51(1), to the extent that the obligation is not recoverable from the International Fund;
(e) the cause of the oil pollution damage is unknown and the Administrator has been unable to establish that the occurrence that gave rise to the damage was not caused by a ship; or
(f) the Administrator is a party to a settlement under section 90.
Claims Arising under Section 51
85. (1) In addition to any right against the Ship-source Oil Pollution Fund under section 84, a person who has suffered loss or damage or incurred costs or expenses referred to in subsection 51(1) in respect of actual or anticipated oil pollution damage may file a claim with the Administrator for the loss, damage, costs or expenses.
(2) Unless the Admiralty Court fixes a shorter period under paragraph 92(a), a claim under subsection (1) must be made
(a) within two years after the day on which oil pollution damage occurred and five years after the occurrence that caused that damage, or
(b) if no oil pollution damage occurred, within five years after the occurrence in respect of which oil pollution damage was anticipated.
(3) Subsection (1) does not apply to a response organization referred to in subsection 51(1)(b) or a person in a state other than Canada.
86. (1) On receipt of a claim under section 85, the Administrator shall
(a) investigate and assess the claim; and
(b) make an offer of compensation to the claimant for whatever portion of the claim the Administrator finds to be established.
(2) For the purpose of investigating and assessing a claim, the Administrator has the powers of a commissioner under Part I of the Inquiries Act.
(3) In investigating and assessing a claim, the Administrator may consider only
(a) whether the claim is for loss, damage, costs or expenses referred to in subsection 85(1); and
(b) whether the claim resulted wholly or partially from
(i) an act done or omitted to be done by the claimant with intent to cause damage, or
(ii) the negligence of the claimant.
(4) A claimant is not required to satisfy the Administrator that the occurrence was caused by a ship, but the Administrator shall dismiss a claim if satisfied on the evidence that the occurrence was not caused by a ship.
(5) The Administrator shall reduce or nullify any amount that the Administrator would have otherwise assessed in proportion to the degree to which the Administrator is satisfied that the claim resulted from
(a) an act done or omitted to be done by the claimant with intent to cause damage; or
(b) the negligence of the claimant.
87. (1) If the Administrator makes an offer of compensation to a claimant under section 86, the claimant shall, within 60 days after receiving the offer, notify the Administrator whether the claimant accepts or refuses it and, if no notification has been received by the Administrator at the end of that period, the claimant is deemed to have refused the offer.
(2) A claimant may, within 60 days after receiving an offer of compensation from the Administrator or a notification that the Administrator has disallowed the claim, appeal the adequacy of the offer or the disallowance of the claim to the Admiralty Court, but in an appeal from the disallowance of a claim that Court may consider only the matters described in paragraphs 86(3)(a) and (b).
(3) If a claimant accepts an offer of compensation from the Administrator under section 86,
(a) the Administrator shall without delay direct payment to the claimant of the amount of the offer out of the Ship-source Oil Pollution Fund;
(b) the claimant is then precluded from pursuing any rights that the claimant may have had against any person in respect of matters referred to in subsection 51(1) in relation to the occurrence to which the offer of compensation relates;
(c) the Administrator is, to the extent of the payment to the claimant, subrogated to any rights of the claimant mentioned in paragraph (b); and
(d) the Administrator shall take all reasonable measures to recover the amount of the payment from the owner of the ship, the International Fund or any other person liable and, for that purpose, the Administrator may commence an action in the name of the Administrator or the claimant and may enforce any security provided to or enforceable by the claimant, including any claim against a shipowner’s fund established under subsection 58(1).
Claims for Loss of Income
88. (1) In this section, “fish”, “fishing” and “fishing vessel” have the same meaning as in section 2 of the Fisheries Act.
(2) In this section, “claimant” means
(a) an individual who derives income from fishing, from the production, breeding, holding or rearing of fish, or from the culture or harvesting of marine plants;
(b) the owner of a fishing vessel who derives income from the rental of fishing vessels to holders of commercial fishing licences issued in Canada;
(c) an individual who derives income from the handling of fish on shore in Canada directly after they are landed from fishing vessels;
(d) an individual who fishes or hunts for food or animal skins for their own consumption or use;
(e) a person who rents or charters boats in Canada for sport fishing; or
(f) a worker in a fish plant in Canada, excluding, except in the case of a familytype co-operative operation that has a total annual throughput of less than 1,400 metric tons or an annual average number of employees of fewer than 50, a person engaged exclusively in supervisory or managerial functions.
(3) Subject to this section, a claimant who has suffered or will suffer a loss of income, or loss of a source of food or animal skins in the case of a person described in paragraph (2)(d), resulting from a discharge of oil from a ship and not recoverable otherwise under this Part may file a claim with the Administrator for that loss or future loss
(a) within three years after the day on which the discharge of the oil occurred or first occurred, as the case may be, or could reasonably be expected to have become known to the claimant; and
(b) within six years after the occurrence that caused the discharge.
(4) The right to file a claim under this section is limited to claimants who
(a) were lawfully carrying on an activity described in subsection (2); and
(b) except in the case of individuals described in paragraph (2)(d),
(i) are Canadian citizens or permanent residents of Canada within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act, in the case of an individual, or
(ii) are incorporated by or under the laws of Canada or a province, in the case of a corporation.
(5) A claimant is not required to satisfy the Administrator that the occurrence was caused by a ship, but the Administrator shall dismiss a claim if satisfied on the evidence that the occurrence was not caused by a ship.
(6) The period mentioned in subsection (3) for filing a claim under that subsection may be shortened by order of the Admiralty Court under paragraph 92(a).
89. (1) On receipt of a claim filed under subsection 88(3), the Administrator shall
(a) if the Administrator considers the action appropriate for the proper administration of the Ship-source Oil Pollution Fund, direct payment of the amount of the loss alleged in the claim or otherwise agreed on between the Administrator and the claimant; or
(b) in any other case, transmit the claim to the Minister.
(2) On receipt of a claim from the Administrator under paragraph (1)(b), the Minister shall,
(a) after consulting with the Minister of Fisheries and Oceans, the Minister of the Environment and the Administrator, appoint as assessors one or more persons not employed in the public service, as defined in subsection 3(1) of the Public Service Superannuation Act; and
(b) fix the remuneration and expenses to be paid to the person or persons while they are acting as assessors and authorize the Administrator to direct payment of the remuneration and expenses to them.
(3) For the purpose of assessing a loss alleged by a claimant under section 88, an assessor or assessors, in this section referred to as the “assessor”,
(a) after giving reasonable notice to the Administrator and the claimant, shall meet with the Administrator and the claimant or their representatives;
(b) may receive and consider any written or oral evidence submitted to the assessor by or on behalf of the Administrator or the claimant, whether or not the evidence would be admissible before a court; and
(c) in so doing, has all the powers of a commissioner under Part I of the Inquiries Act.
(4) The assessor shall, within 60 days after the assessor’s appointment or within any longer period that is agreed to by the Minister, report to the Minister whether, in his or her opinion, the following requirements have been met:
(a) the loss alleged by the claimant has been established;
(b) the loss resulted from the discharge of oil from a ship; and
(c) the loss is not recoverable otherwise under this Part.
(5) If the assessor reports that the requirements of paragraphs (4)(a) to (c) have been met, the report must set out the amount of the loss as assessed by the assessor.
(6) On receipt of the report, the Minister shall without delay forward a copy of it to the claimant and to the Administrator, who shall direct payment to the claimant out of the Ship-source Oil Pollution Fund of an amount equal to the amount, if any, of the assessed loss set out in the report.
Proceedings against Shipowner
90. (1) If a claimant commences proceedings against the owner of a ship or the owner’s guarantor in respect of a matter referred to in subsection 51(1), except in the case of proceedings commenced by the Minister of Fisheries and Oceans under paragraph 51(1)(c) in respect of a pollutant other than oil,
(a) the document commencing the proceedings shall be served on the Administrator by delivering a copy of it personally to the Administrator, or by leaving the copy at the Administrator’s latest known address, and the Administrator is then a party to the proceedings; and
(b) the Administrator shall appear and take any action, including being a party to a settlement either before or after judgment, that the Administrator considers appropriate for the proper administration of the Ship-source Oil Pollution Fund.
(2) If the Administrator is a party to a settlement under paragraph (1)(b), the Administrator shall direct payment to the claimant of the amount that the Administrator has agreed to pay under the settlement.
Limit of Liability of Ship-source Oil Pollution Fund
91. (1) The maximum aggregate liability of the Ship-source Oil Pollution Fund under sections 84, 86 and 88 and under any settlement, in respect of any particular occurrence, is
(a) $100,000,000 if the occurrence took place in the year ending March 31, 1990; or
(b) if the occurrence takes place in any following year, an amount calculated in accordance with subsection (2).
(2) The $100,000,000 limit of liability referred to in paragraph (1)(a) shall be adjusted annually so that the limit of liability arising out of any given occurrence that takes place in any following year is an amount equal to the product obtained by multiplying
(a) the limit of liability that would have been applicable for that following year if no adjustment had been made under this section with respect to that following year
by
(b) the ratio that the Consumer Price Index, excluding the food and energy components, for the 12-month period ending on December 31 next before that following year bears to the Consumer Price Index, excluding the food and energy components, for the 12-month period next before that 12-month period.
(3) For the purpose of this section,
(a) a reference to the “Consumer Price Index, excluding the food and energy components,” for any 12-month period means the average of the Consumer Price Index for Canada, excluding the food and energy components, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period;
(b) the Governor in Council may, on the recommendation of the Minister, make regulations prescribing the manner in which the average of the Consumer Price Index, excluding the food and energy components, for any 12-month period is to be determined and the manner of expressing any such average that is determined to be a fraction of a whole number;
(c) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis, a corresponding adjustment shall be made in the Consumer Price Index, excluding the food and energy components, for any 12-month period that is used for the purpose of calculating the limit of liability of the Ship-source Oil Pollution Fund under this section; and
(d) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is modified to reflect a new content basis, that modification does not affect the operation of this section.
(4) The Minister shall cause the limit of liability referred to in subsection (1), adjusted in accordance with this section, to be published in the Canada Gazette each year as soon as it is available, and the limit of liability so published is admissible in any proceeding under this Part as conclusive proof of that limit of liability for the year in question.
Application to Court for Directions
92. If the Admiralty Court, on the application of the Administrator and on notice to other interested parties as that Court considers just in the circumstances, is satisfied that, in respect of a particular occurrence, the aggregate liability of the Ship-source Oil Pollution Fund under sections 84, 86 and 88 and subsection 90(2) may exceed its limit of liability under section 91, that Court may
(a) order the exclusion of any claimants who do not file their claims with the Administrator within the time that that Court directs; and
(b) order that payment out of the Ship-source Oil Pollution Fund of established claims be prorated or postponed, or any combination of prorating and postponement.
Payments into the Ship-source Oil Pollution Fund
93. (1) In this section and sections 94 to 99, “oil” means “Contributing Oil” as defined in paragraph 3 of Article 1 of the Fund Convention.
(2) If imposed or re-imposed by the Minister under subsection 95(1), there shall be paid to the Receiver General a levy determined in accordance with section 94
(a) in respect of each metric ton of oil in excess of 300 metric tons imported by ship into Canada in bulk as cargo; and
(b) in respect of each metric ton of oil in excess of 300 metric tons shipped by ship from any place in Canada in bulk as cargo.
(3) Amounts payable under subsection (2) shall be paid, or security for payment of those amounts in an amount and form satisfactory to the Minister shall be given,
(a) in the case of oil imported by ship into Canada in bulk as cargo, before the oil is unloaded from the ship; and
(b) in the case of oil shipped from a place in Canada in bulk as cargo of a ship, before the ship leaves the facility where the oil is loaded on board the ship.
(4) All amounts payable under subsection (2) and any interest payable on those amounts are debts due to Her Majesty in right of Canada and recoverable in any court of competent jurisdiction from
(a) in the case of oil imported by ship into Canada in bulk as cargo, the owner, consignee or shipper of the oil; and
(b) in the case of oil shipped from a place in Canada in bulk as cargo of a ship, the owner, consignor or shipper of the oil.
94. (1) The levy referred to in subsection 93(2) is 30 cents in the year ending on March 31, 1990.
(2) The levy of 30 cents referred to in subsection (1) shall be adjusted annually so that the levy in any following year is an amount equal to the product obtained by multiplying
(a) the levy that would have been payable in that following year if no adjustment had been made under this section with respect to that following year
by
(b) the ratio that the Consumer Price Index, excluding the food and energy components, for the 12-month period ending on December 31 next before that following year bears to the Consumer Price Index, excluding the food and energy components, for the 12-month period next before that 12-month period.
(3) For the purpose of this section,
(a) a reference to the “Consumer Price Index, excluding the food and energy components,” for any 12-month period means the average of the Consumer Price Index for Canada, excluding the food and energy components, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period;
(b) the Governor in Council may, on the recommendation of the Minister, make regulations prescribing the manner in which the average of the Consumer Price Index, excluding the food and energy components, for any 12-month period is to be determined and the manner of expressing any such average that is determined to be a fraction of a whole number;
(c) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis, a corresponding adjustment shall be made in the Consumer Price Index, excluding the food and energy components, for any 12-month period that is used for the purpose of calculating the levy under this section; and
(d) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is modified to reflect a new content basis, that modification does not affect the operation of this section.
(4) The Minister shall cause the levy referred to in section 93, adjusted in accordance with this section, to be published in the Canada Gazette each year as soon as it is available, and the levy so published is admissible in any proceeding under this Part as conclusive proof of the levy for the year in question.
95. (1) The Minister, after consultation with the Minister of Fisheries and Oceans and the Minister of the Environment, may from time to time, by order, impose, discontinue or re-impose the levy referred to in section 93.
(2) The non-imposition, discontinuation or re-imposition of the levy under subsection (1) does not affect the operation of section 94.
96. The Governor in Council may, on the recommendation of the Minister, make regulations
(a) prescribing the manner in which the levy payable under section 93 is to be paid;
(b) providing for the filing with the Minister of information returns by the persons referred to in subsection 93(4) from whom the levy may be recovered; and
(c) providing for the filing with the Minister of information returns necessary to enable the Administrator to discharge the Administrator’s obligations under section 76.
97. (1) Every person referred to in subsection 93(4) from whom the levy payable under section 93 may be recovered shall keep records and books of account at their place of business in Canada, or at any other place in Canada that may be designated by the Minister, that set out
(a) the amounts that are payable by that person under that section;
(b) the type and quantity of the oil in respect of which the amounts referred to in paragraph (a) are payable;
(c) the time when and place where the amounts referred to in paragraph (a) were paid or security for their payment was given in accordance with subsection 93(3); and
(d) any other information that the Minister may require to determine the amounts referred to in paragraph (a) and the time when they become payable.
(2) Every person who is required by this section to keep records and books of account shall, unless otherwise authorized by the Minister, retain every such record and book of account and every account or voucher necessary to verify the information contained in the record or book of account until the expiry of six years from the end of the year to which the record or book of account relates.
(3) Every person who is required by this section to keep records and books of account shall, at all reasonable times, make the records and books of account, and every account or voucher necessary to verify the information contained in them, available to any person designated in writing by the Minister and give that person every facility necessary to examine the records, books of account, accounts and vouchers.
98. (1) Any person designated in writing by the Minister for the purpose may, at any reasonable time, enter any premises where the person believes on reasonable grounds that there are any records, books of account, accounts, vouchers or other documents relating to amounts payable under section 93 and
(a) examine anything on the premises and copy or take away for further examination or copying any record, book of account, account, voucher or other document that they believe, on reasonable grounds, contains any information relevant to the enforcement of this Part; and
(b) require the owner, occupier or person in charge of the premises to give the person all reasonable assistance in connection with the examination under paragraph (a) and to answer all proper questions relating to the examination and, for that purpose, require the owner, occupier or person in charge of the premises to attend at those premises with the person.
(2) Living quarters may not be entered under subsection (1) unless they are entered with the consent of the occupant or under the authority of a warrant issued under subsection (3).
(3) On ex parte application, a justice, within the meaning of section 2 of the Criminal Code, may issue a warrant authorizing a person designated under subsection (1) to enter living quarters, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that entry to the living quarters
(a) is necessary for the purpose of subsection (1); and
(b) has been refused or there are reasonable grounds to believe that it will be refused.
(4) Persons designated by the Minister under subsection (1) shall be furnished with a certificate of their designation and, on entering any premises referred to in that subsection, shall produce the certificate on request to the owner, occupier or person in charge of the premises.
(5) On the conclusion of an examination under this section, the person conducting the examination shall transmit a full report of their findings to the Minister.
(6) The original or a copy of any record, book of account, account, voucher or other document taken away under paragraph (1)(a) shall be returned to the person from whose custody it was taken within 21 days after it was taken or within any longer period that is directed by a judge of a superior court for cause or agreed to by a person who is entitled to its return.
(7) An application to a judge mentioned in subsection (6) for a direction under that subsection may only be made on notice to the person from whose custody the record, book of account, account, voucher or other document was taken.
(8) A document purporting to be certified by the Minister to be a copy of a record, book of account, account, voucher or other document made under paragraph (1)(a) is admissible in evidence in any prosecution for an offence under this Part and is, in the absence of evidence to the contrary, proof of its contents.
(9) No person shall obstruct or hinder anyone engaged in carrying out their duties and functions under this section, or knowingly make a false or misleading statement, either orally or in writing, to any person so engaged.
99. If any portion of a levy is not paid as provided in subsection 93(3), interest may be charged on the amount from time to time outstanding, at a rate fixed by the Governor in Council on the recommendation of the Minister of Finance, calculated from the time when the oil is unloaded from the ship or when the ship on which the oil was loaded leaves the facility at which it was loaded, as the case may be.
Annual Report
100. (1) The Administrator shall, as soon as feasible after the end of each fiscal year, submit a report to the Minister, in any form that the Minister may direct, of the Administrator’s operations under this Part for that fiscal year.
(2) The Minister shall have the report laid before each House of Parliament on any of the first ten days on which that House is sitting after the day on which the Minister receives it.
Interest on Claims
101. (1) Interest accrues on a claim under this Part against an owner of a ship, the owner’s guarantor, the Ship-source Oil Pollution Fund or the International Fund 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 in effect from time to time.
(2) Interest referred to in subsection (1) accrues
(a) if the claim is based on paragraph 51(1)(a), from the day on which the oil pollution damage occurred;
(b) if the claim is based on paragraph 51(1)(b) or (c),
(i) in the case of costs and expenses, from the day on which they were incurred, or
(ii) in the case of loss or damage referred to in that paragraph, from the day on which the loss or damage occurred; or
(c) if the claim is for loss of income under section 88, from the time when the loss of income occurred.
Regulations
102. The Governor in Council may, on the recommendation of the Minister, make regulations
(a) prescribing anything that by this Part is to be prescribed by the regulations; and
(b) generally for carrying out the purposes and provisions of this Part.
Offences and Punishment
103. (1) Any person who fails to produce a certificate or give details of it as and when required under subsection 60(4) is guilty of an offence and liable on summary conviction to a fine not exceeding $100,000.
(2) A marine safety inspector who is authorized under paragraph 11(2)(d) of the Canada Shipping Act, 2001 to carry out inspections under section 211 of that Act and who has reasonable grounds for believing that an offence under subsection (1) has been committed in respect of a ship may make a detention order in respect of that ship, and section 222 of that Act applies to the detention order with any modifications that the circumstances require.
104. (1) Any person who wilfully evades or attempts to evade payment of an amount payable under section 93 is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000.
(2) Any person who fails to file an information return as and when required by regulations made under paragraph 96(b) or (c), containing substantially the information required to be included in the return, is guilty of an offence and liable on summary conviction to a fine not exceeding $100 for each day of default.
(3) Any person who contravenes section 97 is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000.
(4) Any person who knowingly destroys, mutilates or falsifies, or who knowingly makes any false entry or statement in, any record, book of account or other document required to be kept under section 97 is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000.
(5) Any person who contravenes subsection 76(4) or 98(9) is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000.
105. When a person is charged with having committed an offence under this Part, any court in Canada that would have had cognizance of the offence if it had been committed by a person within the limits of its ordinary jurisdiction has jurisdiction to try the offence as if it had been committed there.
PART 7
VALIDATION OF CERTAIN BY-LAWS AND REGULATIONS
By-laws under the Canada Ports Corporation Act
106. Each of the following by-laws is deemed for all purposes to have been validly made and to have had the same force and effect as if it had been made in accordance with the Canada Ports Corporation Act, and any harbour dues collected before the coming into force of this section under the authority purported to be granted by the by-law are deemed to have been validly collected:
(a) by-law amending the Harbour Dues Tariff By-law, made by Order in Council P.C. 1983-3905 of December 8, 1983, and registered as SOR/83-934;
(b) by-law amending the Pacific Harbour Dues Tariff By-law, made by Order in Council P.C. 1983-3906 of December 8, 1983, and registered as SOR/83-935; and
(c) by-law amending the Pacific Harbour Dues Tariff By-law, made by Order in Council P.C. 1985-541 of February 14, 1985, and registered as SOR/85-190.
Regulations under the Pilotage Act
107. The Laurentian Pilotage Tariff Regulations, 1992, made by Order in Council P.C. 1994-1508 of September 7, 1994, and registered as SOR/94-588, are deemed for all purposes to have been made on July 4, 1994 by the Laurentian Pilotage Authority with the approval of the Governor in Council under section 33 of the Pilotage Act, and any pilotage charges collected before the coming into force of this section under the authority purported to be granted by those Regulations are deemed to have been validly collected.
PART 8
TRANSITIONAL, CONSEQUENTIAL AMENDMENTS, CONDITIONAL AMENDMENT, REPEAL AND COMING INTO FORCE
Transitional
108. Part 4 applies in respect of
(a) carriage by water under contracts of carriage entered into after that Part comes into force; and
(b) carriage by water, otherwise than under contracts of carriage, commencing after that Part comes into force.
Consequential Amendments
109. to 128. [Amendments]
Conditional Amendment
129. [Amendment]
Repeal
130. [Repeal]
Coming into Force
131. (1) The provisions of this Act, other than sections 45 and 129, come into force 90 days after the day on which this Act receives royal assent or on any later day or days previously fixed by order of the Governor in Council.
(2) The subsections of section 45 come into force on a day or days to be fixed by order of the Governor in Council.