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Marine Liability Act (S.C. 2001, c. 6)

Full Document:  

Act current to 2019-11-19 and last amended on 2018-12-13. Previous Versions

PART 7Ship-source Oil Pollution Fund (continued)

Claims for Loss of Income (continued)

Marginal note:Administrator’s responsibility

  •  (1) On receipt of a claim filed under section 107, the Administrator shall

    • (a) if he or she considers the action appropriate for the proper administration of the Ship-source Oil Pollution Fund, direct payment to be made to the claimant 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.

  • Marginal note:Appointment of assessors

    (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.

  • Marginal note:Assessment of loss

    (3) For the purpose of assessing a loss alleged by a claimant under section 107, 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) has all the powers of a commissioner under Part I of the Inquiries Act.

  • Marginal note:Report to Minister

    (4) The assessor shall, within 60 days after their appointment or within any longer period that is agreed to by the Minister, report to the Minister whether, in their 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 than under this Part.

  • Marginal note:Amount of loss

    (5) If the assessor reports that the requirements of subsection (4) have been met, the report must set out the amount of the loss as assessed by them.

  • Marginal note:Payment of assessed loss out of Fund

    (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 be made 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.

  • 2001, c. 6, s. 108
  • 2009, c. 21, s. 11

Proceedings Against the Owner of a Ship

Marginal note:Proceedings against owner of ship

  •  (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 section 51, 71 or 77, Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention, except in the case of proceedings based on paragraph 77(1)(c) commenced by the Minister of Fisheries and Oceans 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 him or her, or by leaving a copy at his or her last 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 he or she considers appropriate for the proper administration of the Ship-source Oil Pollution Fund.

  • Marginal note:If Administrator party to settlement

    (2) If the Administrator is a party to a settlement under paragraph (1)(b), he or she shall direct payment to be made to the claimant of the amount that the Administrator has agreed to pay under the settlement.

  • 2001, c. 6, s. 109
  • 2009, c. 21, s. 11

Emergency Funds

Marginal note:Request by Minister of Fisheries and Oceans for funds — $10 million

  •  (1) If, in the opinion of the Minister of Fisheries and Oceans, emergency funds are necessary to respond to a significant incident involving the discharge of oil from a ship, the Minister of Transport may, after consultation with the Administrator, direct the amount of funds requested by the Minister of Fisheries and Oceans, or a lesser amount, to be charged to the Ship-source Oil Pollution Fund to enable the Minister of Fisheries and Oceans to respond to the significant incident, to a maximum of $10 million per fiscal year.

  • Marginal note:Additional funds — $50 million

    (2) If the maximum amount has been charged to the Ship-source Oil Pollution Fund under subsection (1) and, in the opinion of the Minister of Fisheries and Oceans, additional emergency funds are necessary to respond to a significant incident in that fiscal year involving the discharge of oil from a ship, the Governor in Council may, on the recommendation of the Minister of Transport made after consultation with the Administrator, issue an order in council directing the additional funds requested by the Minister of Fisheries and Oceans, or a lesser amount, to be charged to the Ship-source Oil Pollution Fund to enable the Minister of Fisheries and Oceans to respond to the significant incident, to a maximum of $50 million per fiscal year.

  • Marginal note:Exclusions

    (3) For greater certainty, the Minister of Fisheries and Oceans may not request emergency funds under subsection (1) or (2) for

    • (a) measures taken or to be taken under paragraph 180(1)(a) of the Canada Shipping Act, 2001 in respect only of a discharge of oil by a small vessel that is dilapidated or abandoned; or

    • (b) the carrying out by that Minister of only minor monitoring of measures under paragraph 180(1)(b) of that Act.

  • Marginal note:Use of emergency funds

    (4) The Minister of Fisheries and Oceans may use emergency funds only to respond to a significant incident involving the discharge of oil from a ship, including paying third parties. For greater certainty, that Minister may not use such funds for any

    • (a) measures taken or to be taken under paragraph 180(1)(a) of the Canada Shipping Act, 2001 in respect only of a discharge of oil by a small vessel that is dilapidated or abandoned; or

    • (b) measures referred to in subsection 101(1.1).

  • 2001, c. 6, s. 110
  • 2009, c. 21, s. 11
  • 2018, c. 27, s. 727

Marginal note:Reimbursement of amount of emergency funds

  •  (1) If emergency funds are charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2), the amount of the emergency funds shall be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropriation Act, within two years after the day on which the oil pollution damage resulting from the significant incident occurs or within any longer period agreed to by the Administrator and the Minister of Fisheries and Oceans.

  • Marginal note:Rights unaffected

    (2) Nothing in subsection (1) affects the rights of the Minister of Fisheries and Oceans under sections 51, 71, 77 and 101, Article III of the Civil Liability Convention and Article 3 of the Bunkers Convention with respect to loss and damage suffered, and costs and expenses incurred, in respect of the significant incident.

  • 2001, c. 6, s. 111
  • 2009, c. 21, s. 11
  • 2018, c. 27, s. 727

Marginal note:Claim under section 103

  •  (1) If the Minister of Fisheries and Oceans files a claim with the Administrator under section 103 for loss and damage suffered, and costs and expenses incurred, in respect of the significant incident for which emergency funds were charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2), then, despite subsection 111(1), it is only any portion of the emergency funds that is unused at the time of the filing of the claim that is to be credited to the Ship-source Oil Pollution Fund within two years after the day on which the oil pollution damage resulting from the significant incident occurs or within any longer period agreed to by the Administrator and the Minister of Fisheries and Oceans.

  • Marginal note:Offer of compensation less than zero

    (2) If the offer of compensation made by the Administrator to the Minister of Fisheries and Oceans under paragraph 105(1)(b) is less than zero, then, unless that Minister appeals the adequacy of the offer under subsection 106(2), an amount equal to the amount of the offer shall be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropriation Act, within six months after the day on which that Minister receives the offer or within any longer period agreed to by the Administrator and that Minister.

  • Marginal note:Offer of compensation refused

    (3) If the Minister of Fisheries and Oceans refuses the offer of compensation made under paragraph 105(1)(b), then, as soon as feasible after that Minister receives the offer, an amount equal to the amount of the emergency funds charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2) shall be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropriation Act, less any unused portion of the emergency funds credited to the Ship-source Oil Pollution Fund under subsection (1).

  • Marginal note:Definition of offer of compensation

    (4) If emergency funds are charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2), then, for the purposes of sections 105, 106 and this section, offer of compensation means, with respect to the Minister of Fisheries and Oceans, the amount determined in accordance with the formula

    A – (B – C)

    where

    A
    is the amount that the Administrator assessed under paragraph 105(1)(a);
    B
    is the amount of emergency funds charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2); and
    C
    is the amount of any unused portion of emergency funds credited to the Ship-source Oil Pollution Fund under subsection (1).
  • 2018, c. 27, s. 727
 
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