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

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:Claims filed with Administrator — future losses

  (1.2) A claim arising out of oil pollution damage may be filed with the Administrator for

  • (a) future loss of profit or income and future costs or expenses for the mitigation of that loss by a person who expects to suffer loss or incur costs or expenses;

  • (b) future economic loss related to fishing, hunting, trapping or harvesting for personal or household use and future costs or expenses for the mitigation of that loss by an individual who expects to suffer loss or incur costs or expenses;

  • (c) future economic loss related to the exercise of fishing, hunting, trapping or harvesting rights recognized and affirmed by section 35 of the Constitution Act, 1982 and future costs or expenses for the mitigation of that loss by a council, government or other entity that is authorized to act on behalf of an Indigenous group, community or people that holds those rights if that group, community or people expects to suffer loss or incur costs or expenses; and

  • (d) costs or expenses for meeting the conditions imposed by the Administrator under subsection 105(1.2) by a person referred to in paragraph (a), an individual referred to in (b) or a council, government or other entity referred to in paragraph (c) who expects to incur those costs or expenses.

• Marginal note:Period covered by the claim

  (1.3) The claim filed under subsection (1.2) must specify the period covered by the claim, which, for greater certainty, may extend beyond the periods referred to in subsection (2) during which the claim must be filed.

• Marginal note:Limitation or prescription period

  (2) A claim referred to in any of subsections (1) to (1.2) must be made

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

  • (b) if no oil pollution damage occurs, within five years after the incident 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) to (1.2) do not apply to a person in a state other than Canada and 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).

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 subsection 103(1) or (1.1), the Administrator shall investigate and assess it and shall

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

  • (b) disallow the claim and notify the claimant of its disallowance in writing.

• Marginal note:Administrators duties — future losses

  (1.1) On receipt of a claim under subsection 103(1.2), the Administrator shall investigate and assess it and shall

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

  • (b) make an offer of compensation to the claimant on an interim payment schedule for whatever portion of it that the Administrator finds to be established and provide the dates for future payments; or

  • (c) disallow the claim and notify the claimant of its disallowance in writing.

• Marginal note:Conditions

  (1.2) If the Administrator makes an offer of compensation under paragraph (1.1)(a) or (b), the Administrator may impose conditions on the claimant as part of that offer, including a requirement to keep records containing information relating to the claim.

• 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), (1.1) or (1.2), 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)(a), (1.1)(a) or (b), as the case may be, 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 within 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 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 direct payment to be made to the claimant of the amount of the offer out of the Ship-source Oil Pollution Fund without delay or according to the payment schedule referred to in paragraph 105(1.1)(b), as the case may be;

  • (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, except that

    • (i) with respect to the acceptance of an offer of compensation made under paragraph 105(1)(a), the claimant may pursue any rights that they may have under subsection 103(1.2) in a single claim, and

    • (ii) with respect to the acceptance of an offer of compensation made under paragraph 105(1.1)(a) or (b), the claimant may pursue any rights that they may have under subsection 103(1) or (1.1) in a single claim;

  • (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.

Marginal note:Cessation of payments

• 106.01 (1) Despite paragraph 106(3)(a), the Administrator may direct, at any time after the claimant accepts an offer of compensation, that some or all of the payments referred to in paragraph 105(1.1)(b) not be made to the claimant if

  • (a) a condition imposed on the claimant under subsection 105(1.2) is not met;

  • (b) the Administrator has reasonable grounds to believe that the claimant did not take reasonable measures to mitigate the loss for which a claim has been filed under subsection 103(1.2); or

  • (c) the Administrator has reasonable grounds to believe that the claimant’s loss has been mitigated.

• Marginal note:Notice

  (2) If the Administrator directs under subsection (1) that a payment not be made to the claimant, the Administrator must, as soon as feasible, give the claimant notice in writing.

• Marginal note:Appeal to Admiralty Court

  (3) A claimant may, within 60 days after receiving the notice, appeal the decision set out in the notice to the Admiralty Court.

Marginal note:Records — future loss

• 106.02 (1) If the Administrator imposes a condition requiring the claimant to keep records under subsection 105(1.2), the Administrator may, within the following periods, request that the claimant provide the Administrator with the records:

  • (a) in the case of a payment made in accordance with an offer of compensation made under paragraph 105(1.1)(a), the period that ends on the later of

    • (i) one year after the day on which the payment was made, and

    • (ii) three years after the day of the occurrence in respect of which the claimant filed a claim;

  • (b) in the case of payments made in accordance with an offer of compensation made under paragraph 105(1.1)(b) that have ceased under subsection 106.01(1), the period that ends on the later of

    • (i) one year after the day on which the notice was sent by the Administrator under subsection 106.01(2), and

    • (ii) three years after the day of the occurrence in respect of which the claimant filed a claim; or

  • (c) in the case of payments made in accordance with an offer of compensation made under paragraph 105(1.1)(b) that have not ceased, the period that ends on the later of

    • (i) one year after the day on which the final payment was made, and

    • (ii) three years after the day of the occurrence in respect of which the claimant filed a claim.

• Marginal note:Period

  (2) If the Administrator requests records under subsection (1), the claimant must provide them to the Administrator within 30 days beginning on the day on which the claimant receives the request or within any longer period agreed to by the Administrator and the claimant.

• Marginal note:Failure to provide records

  (3) If the claimant does not provide the Administrator with the records within the applicable period, the Administrator may give the claimant a notice that they are required to repay to the Administrator the amount or a portion of the amount of the payment made to them under paragraph 106(3)(a), in the manner and within the period set out in the notice.