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

Full Document:  

Act current to 2024-05-28 and last amended on 2023-06-22. Previous Versions

PART 7Ship-source Oil Pollution Fund (continued)

Liability of Ship-source Oil Pollution Fund (continued)

Process for Claims (continued)

Marginal note:Offer of compensation

  •  (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

  •  (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

  •  (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.

Marginal note:Post-payment investigation and reassessment

  •  (1) The Administrator may, within the period referred to in subsection 106.02(1), investigate and reassess any claim under subsection 103(1.2) for which a payment was made under paragraph 106(3)(a).

  • Marginal note:Administrator’s powers

    (2) For the purpose of investigating and reassessing 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 reassessing a claim, the Administrator may consider only

    • (a) whether it is for loss, costs or expenses referred to in subsection 103(1.2) that the claimant has suffered or incurred;

    • (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;

    • (c) whether it is for loss, costs or expenses for which another claim has been filed;

    • (d) whether the Administrator has reasonable grounds to believe that the claimant did not take reasonable measures to mitigate the loss for which the claim has been filed;

    • (e) whether the claimant’s loss has been mitigated; and

    • (f) whether the conditions imposed on the claimant under subsection 105(1.2), if any, have been met.

Marginal note:Result of investigation and reassessment

  •  (1) As soon as feasible after completing the investigation and reassessment, the Administrator must give the claimant notice that

    • (a) the Administrator will take no further action in respect of whatever portion of the claim was the subject of the investigation and reassessment;

    • (b) the claimant is required to pay to the Administrator the overpayment set out in the notice, in the manner and within the period set out in the notice; or

    • (c) an additional payment, equal to the amount of the loss, costs or expenses suffered or incurred by the claimant minus the sum of any amounts already paid to the claimant, is to be made to the claimant without delay out of the Ship-source Oil Pollution Fund.

  • Marginal note:Appeal to Admiralty Court

    (2) A claimant may, within 60 days after receiving a notice under paragraph (1)(b), appeal to the Admiralty Court the requirement to pay the overpayment set out in the notice.

Marginal note:Debts due to His Majesty

 All amounts payable under subsection 106.02(3) and overpayments payable under paragraph 106.04(1)(b) constitute debts due to His Majesty in right of Canada that may be recovered in a court of competent jurisdiction from the person who is required to pay them.

Expedited Process for Small Claims

Marginal note:Expedited claims — small amounts

  •  (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) if oil pollution damage occurs, within one year after the day of the occurrence that causes that 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.

Marginal note:Liability — exception

 Section 106.1 does not apply in respect of actual or anticipated oil pollution damage on or in any place referred to in paragraph 104(a) or (b).

  • 2018, c. 27, s. 725

Marginal note:Administrator’s duties

  •  (1) Within 60 days beginning on the day of receipt of a claim under subsection 106.1(1), the Administrator shall assess the claim.

  • Marginal note:Disallowance of claim

    (2) If the Administrator has reason to suspect that the claim does not meet one or more of the conditions set out in subsection 106.1(1) or does not comply with subsection 106.1(2), the Administrator shall, within the 60-day period, disallow the claim and notify the claimant of its disallowance in writing.

  • Marginal note:Disallowed claim — other rights unaffected

    (3) The disallowance of a claim under subsection (2) does not prevent the claimant from exercising their rights under this Act — other than under section 106.1 — in respect of the loss, damage, costs and expenses for which the disallowed claim was filed.

  • Marginal note:Payment of claim

    (4) If the Administrator does not have reason to suspect that the claim does not meet one or more of the conditions set out in subsection 106.1(1) or does not comply with subsection 106.1(2), the Administrator shall, within the period referred to in subsection (1), direct payment to be made to the claimant of the amount of the claim out of the Ship-source Oil Pollution Fund.

  • Marginal note:Subrogation

    (5) Once the Administrator directs the payment to be made,

    • (a) the claimant is precluded from pursuing any rights — except for economic loss referred to in subsection 103(1) — that they may have had against the Ship-source Oil Pollution Fund or any person in respect of matters referred to in sections 51, 71 and 77, subsections 101(1.1) and 103(1.1), Article III of the Civil Liability Convention and Article 3 of the Bunkers Convention in relation to the occurrence to which the payment relates; and

    • (b) the Administrator is, to the extent of the payment to the claimant, subrogated to any of the claimant’s rights for any part of that payment that may be recovered from the owner of the ship, the International Fund, the Supplementary Fund or any other person liable.

  • Marginal note:Recovery of amount of payment

    (6) If the Administrator directs a payment to be made under subsection (4), he or she shall take all reasonable measures to recover the part of the payment referred to in paragraph (5)(b) and, for that purpose, may, among other things, commence an action in the Administrator’s or the claimant’s name, commence a claim against the fund of the owner of a ship established under the Civil Liability Convention and enforce any security provided to or enforceable by the claimant.

  • 2018, c. 27, s. 725

Marginal note:Supporting documents

  •  (1) If the Administrator directs a payment to be made to a claimant under subsection 106.3(4), the Administrator may, within three years after the day of the occurrence in respect of which the payment was directed to be made, request the claimant to provide the Administrator with the supporting documents referred to in subparagraph 106.1(2)(c)(iii).

  • Marginal note:Period

    (2) If the Administrator requests supporting documents 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 supporting documents

    (3) If the claimant does not provide the Administrator with the supporting documents within the applicable period, the Administrator may give the claimant a notice that they are required to repay to the Administrator the amount of the payment made to them under subsection 106.3(4), in the manner and within the period set out in the notice.

  • 2018, c. 27, s. 725
 

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