Marginal note:Limitation of liability — other ships
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
Marginal note:No damage in Canadian territory or Canadian waters
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).
Marginal note:Remedies exclusive
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.
Marginal note:Servants, etc., not liable
(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).
Marginal note:Owners jointly and severally liable
(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.
Marginal note:Shipowner’s fund
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.
Marginal note:Manner in which fund to be constituted
(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.
Marginal note:Distribution of fund
(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.
Marginal note:Postponing distribution
(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.
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