Marine Liability Act

Version of section 58 from 2003-01-01 to 2010-01-01:


Marginal note:Shipowner’s fund

  •  (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.

  • Marginal note:Subrogation

    (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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