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

Marginal note:Remuneration

• 98 (1) The Administrator and the Deputy Administrator are to be paid, for the exercise of their powers and the performance of their duties and functions, the remuneration fixed by the Governor in Council.

• Marginal note:Travelling, living and other expenses

  (1.1) The Administrator and the Deputy Administrator are to be paid, in accordance with Treasury Board directives, reasonable travel, living and other expenses incurred in exercising their powers or performing their duties and functions under this Part while absent from their ordinary place of work.

• Marginal note:Payment out of Consolidated Revenue Fund

  (1.2) On the direction of the Minister of Finance, the remuneration and expenses referred to in subsections (1) and (1.1) and all other costs and expenses incurred by the Administrator and the Deputy Administrator in exercising their powers and performing their duties and functions under this Part are to be paid out of the Consolidated Revenue Fund and charged to the Ship-source Oil Pollution Fund as provided for by paragraph 92(3)(d).

• Marginal note:Taxation

  (2) The Admiralty Court’s assessment officers may, at the Minister of Justice’s request, tax any account for costs and expenses, other than expenses referred to in subsection (1.1), incurred by the Administrator and the Deputy Administrator in exercising their powers or performing their duties and functions as if they were acting for Her Majesty in proceedings in that Court.

Marginal note:Deputy Administrator’s duties and functions

• 99 (1) The Deputy Administrator shall perform the duties and functions consistent with this Part that are assigned to him or her by the Administrator.

• Marginal note:Administrator’s absence or incapacity

  (2) If the Administrator is absent or incapac-itated or the office of Administrator is vacant, the Deputy Administrator has all the powers and duties of the Administrator.

Marginal note:Professional and technical assistance

100 The Administrator may, for the purpose of fulfilling his or her functions, including performing his or her duties under this Part, obtain the professional, technical and other advice and assistance that he or she considers necessary.

Liability of Ship-source Oil Pollution Fund

Process for Claims

Marginal note:Liability of Ship-source Oil Pollution Fund

• 101 (1) Subject to the other provisions of this Part, the Ship-source Oil Pollution Fund is liable in relation to oil for the matters referred to in sections 51, 71 and 77, Article III of the Civil Liability Convention and Article 3 of the Bunkers Convention in respect of any kind of loss, damage, costs or expenses — including economic loss caused by oil pollution suffered by persons whose property has not been polluted — if

  • (a) all reasonable steps have been taken to recover payment of compensation from the owner of the ship or, in the case of a ship within the meaning of Article I of the Civil Liability Convention, from the International Fund and the Supplementary Fund, and those steps have been unsuccessful;

  • (b) the owner of a ship is not liable by reason of any of the defences described in subsection 77(3), Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention and neither the International Fund nor the Supplementary Fund are liable;

  • (c) the claim exceeds

    • (i) in the case of a ship within the meaning of Article I of the Civil Liability Convention, the owner’s maximum liability under that Convention to the extent that the excess is not recoverable from the International Fund or the Supplementary Fund, and

    • (ii) in the case of any other ship, the owner’s maximum liability under Part 3;

  • (d) the owner is financially incapable of meeting their obligations under section 51 and Article III of the Civil Liability Convention, to the extent that the obligation is not recoverable from the International Fund or the Supplementary Fund;

  • (e) the owner is financially incapable of meeting their obligations under section 71 and Article 3 of the Bunkers Convention;

  • (f) the owner is financially incapable of meeting their obligations under section 77;

  • (g) 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

  • (h) the Administrator is a party to a settlement under section 109.

• Marginal note:Additional liability of Ship-source Oil Pollution Fund

  (1.1) Subject to the other provisions of this Part, the Ship-source Oil Pollution Fund is liable for the costs and expenses incurred by the Minister of Fisheries and Oceans or any other person in respect of measures taken under subsection 180(1) of the Canada Shipping Act, 2001 with respect to oil, or for loss or damage caused by those measures, for which neither the owner of a ship, the International Fund nor the Supplementary Fund is liable by reason of the fact that the occurrence or series of occurrences for which those costs and expenses were incurred did not create a grave and imminent threat of causing oil pollution damage.

• Marginal note:Exception — drilling activities

  (2) This Part does not apply to a drilling ship that is on location and engaged in the exploration or exploitation of the seabed or its subsoil in so far as an escape or discharge of oil emanates from those activities.

• Marginal note:Exception — floating storage units

  (3) 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.

Marginal note:Action by Administrator

• 102 (1) If there is an occurrence that gives rise to the liability of an owner of a ship under section 51, 71 or 77, Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention,

  • (a) the Administrator may, either before or after receiving a claim under section 103 or 106.1, 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 determined in accordance with section 71 or 77, or Article V of the Civil Liability Convention.

• Marginal note:Subrogation

  (2) The Administrator may continue the action only if he or she has become subrogated to the rights of the claimant under paragraph 106(3)(c) or 106.3(5)(b).

• Marginal note:Entitlement to claim security

  (3) The Administrator is not entitled to claim security under subsection (1) if

  • (a) in the case of a ship within the meaning of Article I of the Civil Liability Convention, a fund has been constituted under subsection 52(2); and

  • (b) in the case of any other ship, a fund has been constituted under Article 11 of the Convention as defined in section 24.

Marginal note:Claims filed with Administrator

• 103 (1) In addition to any right against the Ship-source Oil Pollution Fund under section 101, a person may file a claim with the Administrator for the loss, damage, costs or expenses if the person has suffered loss or damage, or incurred costs or expenses, referred to in section 51, 71 or 77, Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention in respect of any kind of loss, damage, costs or expenses arising out of actual or anticipated oil pollution damage, including economic loss caused by oil pollution suffered by persons whose property has not been polluted.

• Marginal note:Claims filed with Administrator — costs or expenses under subsection 101(1.1)

  (1.1) In addition to any right against the Ship-source Oil Pollution Fund under subsection 101(1.1), if the Minister of Fisheries and Oceans or any other person has suffered loss or damage, or incurred costs or expenses, referred to in that subsection, that Minister or that person may file a claim with the Administrator for the loss, damage, costs or expenses.

• Marginal note:Limitation or prescription period

  (2) The claim must be made

  • (a) within two years after the day on which the oil pollution damage occurs and five years after the occurrence that causes that damage; or

  • (b) if no oil pollution damage occurs, within five years after the occurrence in respect of which oil pollution damage is anticipated.

• Marginal note:Multiple occurrences

  (2.1) For the purposes of subsection (2), if an incident as a result of which oil pollution damage occurs or in respect of which oil pollution damage is anticipated consists of a series of occurrences, the period of five years referred to in that subsection begins on the day of the first occurrence in that series.

• Marginal note:Exception

  (3) Subsections (1) and (1.1) do not apply to a response organization referred to in paragraph 51(1)(a), 71(1)(a) or 77(1)(b) or to a person in a state other than Canada.

Marginal note:Liability — exception

104 Sections 101 and 103 do not apply in respect of actual or anticipated oil pollution damage

• (a) 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 the Bunkers Convention; or

• (b) in the exclusive economic zone of a state referred to in paragraph (a) 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.

Marginal note:Administrator’s duties

• 105 (1) On receipt of a claim under section 103, the Administrator shall

  • (a) investigate and assess it; and

  • (b) make an offer of compensation to the claimant for whatever portion of it that the Administrator finds to be established.

• Marginal note:Administrator’s powers

  (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.

• Marginal note:Factors to be considered

  (3) When investigating and assessing a claim, the Administrator may consider only

  • (a) whether it is for loss, damage, costs or expenses referred to in subsection 103(1) or (1.1), as the case may be; and

  • (b) whether it 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 claimant’s negligence.

• Marginal note:Cause of occurrence

  (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 he or she is satisfied on the evidence that the occurrence was not caused by a ship.

• Marginal note:When claimant at fault

  (5) The Administrator shall reduce or nullify any amount that he or she would have otherwise assessed in proportion to the degree to which he or she 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 claimant’s negligence.

Marginal note:Offer of compensation

• 106 (1) If the Administrator makes an offer of compensation to a claimant under paragraph 105(1)(b), the claimant shall, within 60 days after receiving the offer, notify the Administrator whether they accept or refuse it and, if no notification is received by the Administrator at the end of that period, the claimant is deemed to have refused the offer.

• Marginal note:Appeal to Admiralty Court

  (2) A claimant may, within 60 days after receiving an offer of compensation 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 105(3)(a) and (b).

• Marginal note:Acceptance of offer by claimant

  (3) If a claimant accepts the offer of compensation from the Administrator,

  • (a) the Administrator shall without delay direct payment to be made 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 they may have had against any person in respect of matters referred to in sections 51, 71 and 77, Article III of the Civil Liability Convention and Article 3 of the Bunkers Convention 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 referred to 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, the Supplementary Fund or any other person liable and, for that purpose, the Administrator may commence an action in the Administrator’s or the claimant’s name, including a claim against the fund of the owner of a ship established under the Civil Liability Convention and may enforce any security provided to or enforceable by the claimant.

Expedited Process for Small Claims

Marginal note:Expedited claims — small amounts

• 106.1 (1) A person may file a claim with the Administrator under this section if the claim meets the following conditions:

  • (a) the claim is for loss, damage, costs or expenses referred to in subsection 103(1) — other than economic loss referred to in that subsection — or (1.1) suffered or incurred by the claimant;

  • (b) the claim is the first one that the claimant has filed in respect of a given occurrence for loss, damage, costs or expenses referred to in paragraph (a) and does not exceed $35,000 or, if any other amount is fixed by regulations made under paragraph 106.8(b), that amount; and

  • (c) the claim did not result, wholly or partially, from an act done or omitted to be done by the claimant with intent to cause damage or from the claimant’s negligence.

• Marginal note:Contents of claim

  (2) The claim must set out

  • (a) a description of the occurrence that gives rise to the claim, as well as of the loss or damage suffered, or costs or expenses incurred, by the claimant that the claim is for;

  • (b) the amount claimed for the loss, damage, costs and expenses;

  • (c) the claimant’s attestation to

    • (i) the truth of the facts set out in the claim,

    • (ii) their having no reason to believe that the occurrence was not caused by a ship,

    • (iii) their ability to provide the Administrator, on request, with supporting documents in respect of the loss, damage, costs or expenses, and

    • (iv) any other information prescribed by the regulations; and

  • (d) any other information prescribed by the regulations.

• Marginal note:Significant incident — increased claim limit

  (3) If, in the Administrator’s opinion, a discharge of oil from a ship constitutes a significant incident, the Administrator may, by order, specify that the amount set out in paragraph (1)(b) for a claim in respect of that significant incident is $50,000 or, if any other amount is fixed by regulations made under paragraph 106.8(d), that amount. If the Administrator makes the order, then he or she shall ensure that a notice to that effect is made available to the public.

• Marginal note:Limitation or prescription period

  (4) A claim under subsection (1) must be made

  • (a) within one year after the day of the occurrence that causes the oil pollution damage; or

  • (b) if no oil pollution damage occurs, within one year after the occurrence in respect of which oil pollution damage is anticipated.

• Marginal note:Multiple occurrences

  (5) For the purposes of subsection (4), if an incident as a result of which oil pollution damage occurs or in respect of which oil pollution damage is anticipated consists of a series of occurrences, the one-year period referred to in that subsection is the year after the day of the first occurrence in that series.

• Marginal note:Exception

  (6) Subsection (1) does not apply to a response organization referred to in paragraph 51(1)(a), 71(1)(a) or 77(1)(b) or to a person in a state other than Canada.