2019 FC, 2019 FC 1009

Date: 20190726 Docket: T-733-19 Citation: 2019 FC 1009 Ottawa, Ontario, July 26, 2019 PRESENT: Madam Justice Strickland BETWEEN: KIRBY OFFSHORE MARINE PACIFIC LLC, KIRBY OFFSHORE MARINE OPERATING LLC Plaintiffs and HEILTSUK HÍMÁS and HEILTSUK TRIBAL COUNCIL, each on their own behalf and on behalf of the members of the Heiltsuk Nation Defendants and THE ADMINISTRATOR OF THE SHIP-SOURCE OIL POLLUTION FUND Party by Statute ORDER AND REASONS TABLE OF CONTENTS I. Introduction 2 II. Background 3 III. Procedural History 5 IV. Issues 9 V. Legislation 9 VI. Positions of the Parties 36 A. Kirby’s Submissions 36 B.

Heiltsuk’s Submissions 40 C. The SOPF 43 VII. Preliminary Matters 45 A. Jurisdiction of this Court 46 B. Extent of requested enjoinment 47 C. Application of the CLC 47 D. The tests for enjoinment and a stay of proceedings 50 (

i) Test for enjoinment 50 (ii) Test for a stay of proceeding 62 E. Attornment 72 (

i) HTC LOU 74 (ii) Correspondence between counsel 76 (iii) Non-compliance with BCSC Civil Rules 77 F. Kreutz Affidavit 80 VIII. Issue 1: Should Heiltsuk be enjoined from continuing the BCSC action against the Kirby Defendants to that action? 81 IX. Issue 2: Should this Court stay the Limitation Action brought by Kirby in this Court? 103 X. Directions and Orders sought 106 A. Constitution of a limitation fund 106 B. Reduction of the amounts secured by the LOUs 108

C. Enjoinment 109 D. Stay 110 E. Draft Order 110 F. Case management 111 I.

Introduction [ 1 ] Before the Court are two related motions, both of which concern a shipowner’s right to limit its liability for oil pollution damage by way of the Marine Liability Act , SC 2001, c 6 [ MLA ]. [ 2 ] More specifically, Kirby Offshore Marine Pacific LLC [Kirby Pacific] and Kirby Offshore Marine Operating LLC [Kirby Operating] commenced an action in this Court seeking to limit their liability [Kirby Operating and Kirby Pacific are together referred to as Kirby in these reasons] arising from a ship-source oil pollution incident.

They now bring a motion seeking an order providing direction as to the constitution of a limitation fund, the enjoining of other claims, and other relief as described in their Notice of Motion [Enjoinment Motion]. [ 3 ] Heiltsuk Hímás and Heiltsuk Tribal Council, each on their own behalf and on behalf of the members of the Heiltsuk First Nation [together, Heiltsuk] filed a claim against Kirby and others in the British Columbia Supreme Court [BCSC] pertaining to oil pollution damage arising from the same ship-source incident.

Heiltsuk now brings a motion seeking to stay Kirby’s limitation action, brought in this Court, on the basis that it is not a convenient forum [Stay Motion]. [ 4 ] The facts and law overlap in the Enjoinment Motion and the Stay Motion and they were heard together in Vancouver on July 8, 2019. II. Background [ 5 ] The background facts relevant to these motions are largely undisputed. [ 6 ] In brief, Kirby Operating is the registered owner of the tug " “Nathan E. Stewart” " [tug]. Kirby Pacific is the registered owner of the barge " “DBL-55” " [barge].

When operating together, the tug and barge were connected through a JAK®ATB Coupling System [coupling system]. [ 7 ] Having discharged the barge’s cargo of jet fuel and gasoline, the connected tug and barge were en route to Vancouver when the second mate of the tug, Henry Hendrix, an employee of Kirby Pacific, fell asleep while at the helm. At approximately 1:08 a.m. on October 13, 2016, the tug and barge struck Edge Reef off Athlone Island, at the entrance to Seaforth Channel, approximately ten nautical miles west of Bella Bella, British Columbia [Incident].

As a result of the Incident, the tug’s fuel tanks were breached and approximately 107,552 litres of diesel fuel and 2,240 liters of lubricants were released from the tug into the sea. [ 8 ] On that same date, a Unified Command was formed to lead the Incident response.

This included representatives of Kirby, the Canadian Coast Guard, the British Columbia Ministry of Environment and Climate Change Strategy, Environment and Climate Change Canada, Transport Canada, Fisheries and Oceans Canada, Heiltsuk, as well as others, including spill response contractors and environmental consultants engaged by or on behalf of Kirby. [ 9 ] On October 29, 2016, Kirby Offshore Marine LLC [Kirby Offshore], which is described in the Kirby submissions as the parent company of Kirby Operating, entered into a Funding Agreement with Heiltsuk Tribal Council, on behalf of Kirby Operating and Kirby Pacific, in respect to spill response costs, income loss claims, and other claims and expenses arising out of the Incident.

Kirby states that, to date, in excess of CAD $3.5 million has been paid to Heiltsuk Tribal Council under the Funding Agreement. [ 10 ] On October 13, 2016, the barge was separated from the tug and towed to another location. Salvage operations for the tug concluded and a final situation report was issued by the Unified Command on November 21, 2016.

Kirby states that, in conjunction with the governments of British Columbia and Canada, it has remained engaged in environmental impact assessment activities resulting from the Incident. [ 11 ] On December 16, 2016, Starr Indemnity & Liability Company, on behalf of Kirby, provided a letter of undertaking to the Ship- source Oil Pollution Fund [SOPF] in the amount of CAD $20 million [SOPF LOU]. On February 3, 2017, a letter of undertaking in the amount of CAD $12 million was similarly provided to the Heiltsuk Tribal Council [HTC LOU]. III.

Procedural History [ 12 ] On October 9, 2018, Heiltsuk filed a Notice of Civil Claim – Admiralty ( In Rem and In Personam ) in the BCSC [BCSC Claim] as against the owners and all others interested in the tug and barge, Kirby Pacific, Kirby Offshore, Kirby Operating, John Doe Corporation, the master and second mate of the tug [all referred to collectively with respect to the BCSC Claim as the Kirby Defendants], the Attorney General of Canada [AG Canada], and the Attorney General of British Columbia [AG British Columbia]. [ 13 ] The BCSC Claim describes Heiltsuk Nation as being comprised of five tribes which make up a self-governing nation of indigenous people who are " “aboriginal people” " under s 35(1) of the Constitution Act, 1982 , being

Schedule B to the Canada Act 1982 (UK), 1982, c 11 [ Constitution Act, 1982 ] and qualify as an Indian Band under the Indian Act , RSC 1985, c I-5 . Heiltsuk Hímás are the

hereditary chiefs of Heiltsuk Nation, and Heiltsuk Tribal Council is its elected governing body. Heiltsuk Tribal Council is stated to be an assignee of all choses in action related to the Incident for listed Heiltsuk business entities. [ 14 ] The BCSC Claim is a lengthy document but, in essence, it asserts Heiltsuk’s Aboriginal interests in " “Heiltsuk Territory” " , which territory it describes as including lands and water-covered lands in a described " “Claim and Loss Area” " .

Heiltsuk asserts that this includes all saltwater covered lands, including the seabed and foreshore, and certain named Indian reserve lands. However, their claim of Aboriginal title and other Aboriginal rights excludes, except for those named Indian reserve lands, all lands above the high water mark, without prejudice to future Aboriginal title claims regarding the excluded areas. In essence, Heiltsuk appears to only be claiming Aboriginal title and rights over territories it claims were impacted by the Incident.

It has left to another day its claim to other Aboriginal title and rights over the rest of its claimed traditional territory. Heiltsuk states that it has asserted the necessary facts in the BCSC Claim to establish communal Aboriginal rights or other interests over the Claim and Loss Area, including Aboriginal title, Aboriginal management rights, Aboriginal harvesting rights, and communal and commercial licence rights to fish and harvest marine resources. [ 15 ] The BCSC Claim asserts that the Kirby Defendants are liable for the Incident.

Heiltsuk bases its allegations against the Kirby Defendants on recklessness, negligence, nuisance, breach of contract, and breach of statutory duty.

The relief sought includes: declarations of the asserted Aboriginal title and rights; a declaration that the Kirby Defendants are obliged under the British Columbia Environmental Management Act , SBC, 2003, c 53 [ EMA ] to perform or fund environmental assessments; a declaration that Canada and British Columbia have a legal duty to consult with Heiltsuk concerning decisions made pursuant to s 180(1) of the Canada Shipping Act , SC 2001, c 26 [ CSA ] or s 91.2(3) of the EMA ; oil pollution damages under the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 , concluded at London on March 23, 2001 [Bunkers Convention] or, alternatively, the International Convention on Civil Liability for Oil Pollution Damage, 1992 , concluded at London on November 27, 1992,

Article V of which was amended by the Resolution adopted by the Legal Committee of the International Maritime Organization on October 18, 2000 [CLC]; other damages; and a mandatory injunction requiring Kirby to comply with all applicable Canadian and British Columbia laws relating to minimum watch personnel. [ 16 ] Heiltsuk also asserts in the BCSC Claim that the limits on " “pollution damage” " , as defined in the Bunkers Convention or, alternatively, the CLC, unjustifiably infringe its rights under s 35 of the Constitution Act, 1982 by limiting recovery stemming from impairments of the environment that do not involve losses of profit.

This includes precluding compensation for interference with use and enjoyment of Aboriginal harvesting rights and preventing complete compensation for interference with Aboriginal interests. Heiltsuk asserts that the infringements are unjustified because Canada failed to consult with Heiltsuk about the impact of the Bunkers Convention, or the CLC, on Heiltsuk’s Aboriginal rights.

It also asserts that Canada failed to remedy the infringements though s 107 of the MLA , which allows for claims related to loss of income or loss of food source or animal skins, but does not allow for claims based on communal harvesting rights or fishing for communal consumption or use. Further, Heiltsuk claims that the Bunkers Convention or the CLC unjustifiably infringe s 35 by preventing Heiltsuk from seeking to recover, through common law causes of action, for damages not covered by those

definitions of " “pollution damages” " under those conventions.

Heiltsuk also asserts that the provisions of the conventions that prescribe recoverable claims are invalid to the extent that they apply to a claim for loss or damage relating to Aboriginal rights. [ 17 ] On April 1, 2019, in response to the BCSC Claim, the Kirby Defendants filed a " “Jurisdictional Response” " in Form 108, pursuant to Rule 21-8 of the British Columbia Supreme Court Civil Rules , BC Reg 168/2009 [ BCSC Civil Rules ] disputing the jurisdiction of the BCSC. [ 18 ] On May 1, 2019, the Kirby Defendants filed a Notice of Application in the BCSC proceeding seeking an order staying or dismissing the BCSC Claim against the Kirby Defendants.

On that same date, Kirby filed a Statement of Claim in this Court, T-733-19, commencing its limitation action [Limitation Action]. The Limitation Action seeks, inter alia , an order limiting liability for all claims arising against Kirby from the Incident, pursuant to the Bunkers Convention and the Convention on Limitation of Liability for Maritime Claims, 1976 , concluded at London on November 19, 1976, as amended by the Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims, 1976 , concluded at London on May 2, 1996 [LLMC].

Alternatively, Kirby seeks to limit its liability in accordance with the CLC. Further, it seeks an order constituting a limitation fund, and enjoining Heiltsuk and any other person or party from commencing proceedings or continuing proceedings against Kirby in respect of the Incident in any other Court. Kirby also seeks orders on a variety of matters relating to the requested limitation fund. [ 19 ] On May 31, 2019, Heiltsuk filed a Notice of Application in the BCSC Claim seeking an order that the BCSC confirm its jurisdiction to adjudicate the claims against the Kirby Defendants in that proceeding.

On that same date, Heiltsuk filed a Notice of Motion in this Court seeking to stay the Limitation Action on jurisdictional grounds. Heiltsuk set down its Notice of Application in the BCSC Claim to be heard on August 6, 2019.

Kirby asserts that this was done unilaterally. [ 20 ] By Direction dated June 14, 2019, Chief Justice Crampton required Heiltsuk to bring its motion seeking a stay of the Limitation Action and for it to be heard on July 8, 2019. [ 21 ] On July 3, 2019, the Administrator of the Ship-source Oil Pollution Fund [Administrator], as a party by statute pursuant to s 109 of the MLA , filed a Notice of Appearance and subsequently submitted motion records in response to the Enjoinment Motion and the Stay Motion. IV.

Issues [ 22 ] In my view, while there are many peripheral matters raised in the parties’ submissions, there are two issues arising from these two motions which must be determined by this Court: i . Should Heiltsuk be enjoined from continuing the BCSC Claim against the Kirby Defendants to that action, or ii . Should this Court stay the Limitation Action brought by Kirby in this Court?

V. Legislation [ 23 ] In my view, prior to addressing these issues, it is necessary to understand the rather complex legislative backdrop and the regime surrounding a shipowner’s entitlement to limit its liability. This provides critical context to the issues and analysis that follows. [ 24 ] The MLA sets out how maritime claims, as defined in that Act and set out below, will be addressed in Canada. Importantly, this includes incorporating into the law of Canada the provisions of international conventions, to which Canada is a signatory, which permit shipowners to limit their liability for maritime claims. [ 25 ] The most relevant provisions of the MLA are set out below. "

Definitions " " Définitions " " 2 The

definitions in this

section apply in this Act. " " 2 " " Les définitions qui suivent s’appliquent à la présente loi. " " Admiralty Court means the Federal Court. ( " " Cour d’amirauté ) " " Cour d’amirauté " " La Cour fédérale. ( Admiralty Court " " ) " " … " " […] " "

PART 3 " "

PARTIE 3 " " Limitation of Liability for Maritime Claims " " Limitation de responsabilité en matière de créances maritimes " "

Interpretation " " Définitions et dispositions interprétatives " "

Definitions " " Définitions " " 24 The

definitions in this

section apply in this Part. " " 24 " " Les définitions qui suivent s’appliquent à la présente partie. " " Convention means the Convention on Limitation of Liability for Maritime Claims, 1976, concluded at London on November 19, 1976, as amended by the Protocol, Articles 1 to 15 of which Convention are set out in

Part 1 of

Schedule 1 and

Article 18 of which is set out in

Part 2 of that Schedule. ( " " Convention ) " " Convention " " La Convention de 1976 sur la limitation de la responsabilité en matière de créances maritimes conclue à Londres le 19 novembre 1976 – dans sa version modifiée par le Protocole – dont les articles 1 à 15 figurent à la

partie 1 de l’annexe 1 et l’article 18 figure à la

partie 2 de cette annexe. ( Convention " " ) " " maritime claim means a claim described in

Article 2 of the Convention for which a person referred to in

Article 1 of the Convention is entitled to limitation of liability. ( " " créance maritime ) " " créance maritime " " Créance maritime visée à l’article 2 de la Convention contre toute personne visée à l’article 1 de la Convention. ( maritime claim " " ) " " … " " […] " " Protocol means the Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims, 1976, concluded at London on May 2, 1996, Articles 8 and 9 of which are set out in

Part 2 of

Schedule 1. ( " " Protocole ) " " Protocole " " Le Protocole de 1996 modifiant la Convention de 1976 sur la limitation de la responsabilité en matière de créances maritimes conclu à Londres le 2 mai 1996, dont les articles 8 et 9 figurent à la

partie 2 de l’annexe 1. ( Protocol " " ) " " unit of account means a special drawing right issued by the International Monetary Fund. ( " " unités de compte ) " " unités de compte " " S’entend des droits de tirage spéciaux émis par le Fonds monétaire international. ( unit of account " " ) " " Extended meaning of expressions " " Extension de sens " " 25

(1) For the purposes of this Part and Articles 1 to 15 of the Convention, " " 25 (1) " " Pour l’application de la présente

partie et des articles 1 à 15 de la Convention : " " (

a) ship means any vessel or craft designed, used or capable of being used solely or partly for navigation, without regard to method or lack of propulsion, and includes " " … " " (ii) a ship that has been stranded, wrecked or sunk and any part of a ship that has broken up, " " … " " a) " " navire s’entend d’un bâtiment ou d’une embarcation conçus, utilisés ou utilisables, exclusivement ou non, pour la navigation, indépendamment de leur mode de propulsion ou de l’absence de propulsion […] y sont assimilés […] les navires échoués ou coulés ainsi que les épaves et toute

partie d’un navire qui s’est brisé; " " … " " […] " " Inconsistency " " Incompatibilité " "

(2) In the event of any inconsistency between sections 28 to 34 of this Act and Articles 1 to 15 of the Convention, those sections prevail to the extent of the inconsistency. " "

(2) Les articles 28 à 34 de la présente loi l’emportent sur les dispositions incompatibles des articles 1 à 15 de la Convention. " " Application " " Champ d’application "

" Force of law " " Force de loi " " 26

(1) Subject to the other provisions of this Part, Articles 1 to 15 and 18 of the Convention and Articles 8 and 9 of the Protocol have the force of law in Canada. " " 26 (1) " "

Sous réserve des autres dispositions de la présente partie, les articles 1 à 15 et 18 de la Convention et les articles 8 et 9 du Protocole ont force de loi au Canada. " " … " " […] " " State Party to the Convention " " État

partie à la Convention " " 27 For purposes of the application of the Convention, Canada is a State Party to the Convention. " " 27 " " Pour l’application de la Convention, le Canada est un État

partie à la Convention. " " … " " […] " " Procedure " " Procédure " " Jurisdiction of Admiralty Court " " Compétence exclusive de la Cour d’amirauté " " 32

(1) The Admiralty Court has exclusive jurisdiction with respect to any matter relating to the constitution and distribution of a limitation fund under Articles 11 to 13 of the Convention. " " 32 (1) " " La Cour d’amirauté a compétence exclusive pour trancher toute question relative à la constitution et à la répartition du fonds de limitation aux termes des articles 11 à 13 de la Convention. " " Right to assert limitation defence " " Droit d’invoquer la limite de responsabilité " "

(2) Where a claim is made or apprehended against a person in respect of liability that is limited by

section 28, 29 or 30 of this Act or paragraph 1 of

Article 6 or 7 of the Convention, that person may assert the right to limitation of liability in a defence filed, or by way of action or counterclaim for declaratory relief, in any court of competent jurisdiction in Canada.

" " (2) " " Lorsque la responsabilité d’une personne est limitée aux termes des articles 28, 29 ou 30 de la présente loi ou du paragraphe 1 des articles 6 ou 7 de la Convention, relativement à une créance – réelle ou appréhendée – , cette personne peut se prévaloir de ces dispositions en défense, ou dans le cadre d’une action ou demande reconventionnelle pour obtenir un jugement déclaratoire, devant tout tribunal compétent au Canada. " " Powers of Admiralty Court " " Pouvoirs de la Cour d’amirauté " " 33

(1) Where a claim is made or apprehended against a person in respect of liability that is limited by

section 28 or 29 of this Act or paragraph 1 of

Article 6 or 7 of the Convention, the Admiralty Court, on application by that person or any other interested person, including a person who is a party to proceedings in relation to the same subject-matter before another court, tribunal or authority, may take any steps it considers appropriate, including " " 33 (1) " " Lorsque la responsabilité d’une personne est limitée aux termes des articles 28 ou 29 de la présente loi ou du paragraphe 1 des articles 6 ou 7 de la Convention, relativement à une créance – réelle ou appréhendée – , la Cour d’amirauté peut, à la demande de cette personne ou de tout autre intéressé – y compris une

partie à une procédure relative à la même affaire devant tout autre tribunal ou autorité – , prendre toute mesure qu’elle juge indiquée, notamment : " " (

a) determining the amount of the liability and providing for the constitution and distribution of a fund under Articles 11 and 12 of the Convention; " " a) " " déterminer le montant de la responsabilité et faire le nécessaire pour la constitution et la répartition du fonds de limitation correspondant, conformément aux articles 11 et 12 de la Convention; " " (

b) joining interested persons as parties to the proceedings, excluding any claimants who do not make a claim within a certain time, requiring security from the person claiming limitation of liability or from any other interested person and requiring the payment of any costs; and " " b) " " joindre tout intéressé comme

partie à la procédure, exclure tout créancier forclos, exiger une garantie des parties invoquant la limitation de responsabilité ou de tout autre intéressé et exiger le paiement des frais; " " (

c) enjoining any person from commencing or continuing proceedings in any court, tribunal or authority other than the Admiralty Court in relation to the same subject-matter. " " c) " " empêcher toute personne d’intenter ou de continuer quelque procédure relative à la même affaire devant tout autre tribunal ou autorité. " " … " " […] " " Procedural matters " " Procédure " "

(4) The Admiralty Court may " " (4) " " La Cour d’amirauté peut : " " (

a) make any rule of procedure it considers appropriate with respect to proceedings before it under this section; and " " a) " " établir les règles de procédure qu’elle juge utiles relativement à toute affaire dont elle est saisie au

titre du présent article; " " (

b) determine what form of guarantee it considers to be adequate for the purposes of paragraph 2 of

Article 11 of the Convention. " " b) " " déterminer quelle garantie elle estime acceptable pour l’application du paragraphe 2 de l’article 11 de la Convention. " " Interest " " Intérêt "

"

(5) For the purposes of

Article 11 of the Convention, interest is payable at the rate prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpayments of tax under that Act. " " (5) " " Pour l’application de l’article 11 de la Convention, l’intérêt est calculé au taux fixé en vertu de la Loi de l’impôt sur le revenu sur les sommes à verser par le ministre du Revenu national à

titre de remboursement de paiements d’impôt en trop au

titre de cette loi. " [ 26 ]

Schedule 1,

Part 1 of the MLA contains the text of Articles 1 to 15 of the LLMC. The most relevant Articles are set out below for ease of reference. "

Article 1 " "

Article 1 " " Persons entitled to limit liability " " Personnes en droit de limiter leur responsabilité " " 1 Shipowners and salvors, as hereinafter defined, may limit their liability in accordance with the rules of this Convention for claims set out in

Article 2. " " 1 " " Les propriétaires de navires et les assistants, tels que définis ci-après, peuvent limiter leur responsabilité conformément aux règles de la présente Convention à l’égard des créances visées à l’article 2. " " 2 The term shipowner shall mean the owner, charterer, manager and operator of a seagoing ship. " " 2 " " L’expression propriétaire de navire , désigne le propriétaire, l’affréteur, l’armateur et l’armateur-gérant d’un navire de mer. " " 3 Salvor shall mean any person rendering services in direct connexion with salvage operations. Salvage operations shall also include operations referred to in

Article 2, paragraph 1(d), (

e) and (f). " " 3 " " Par assistant , on entend toute personne fournissant des services en relation directe avec les opérations d’assistance ou de sauvetage. Ces opérations comprennent également celles que vise l’article 2, paragraphe 1, alinéas d),

e) et f). " " 4 If any claims set out in

Article 2 are made against any person for whose act, neglect or default the shipowner or salvor is responsible, such person shall be entitled to avail himself of the limitation of liability provided for in this Convention. " " 4 " " Si l’une quelconque des créances prévues à l’article 2 est formée contre toute personne dont les faits, négligences et fautes entraînent la responsabilité du propriétaire ou de l’assistant, cette personne est en droit de se prévaloir de la limitation de la responsabilité prévue dans la présente Convention.

" " 5 In this Convention the liability of a shipowner shall include liability in an action brought against the vessel herself. " " 5 " " Dans la présente Convention, l’expression responsabilité du propriétaire de navire comprend la responsabilité résultant d’une action formée contre le navire lui-même. " " 6 An insurer of liability for claims subject to limitation in accordance with the rules of this Convention shall be entitled to the benefits of this Convention to the same extent as the assured himself.

" " 6 " " L’assureur qui couvre la responsabilité à l’égard des créances soumises à limitation conformément aux règles de la présente Convention est en droit de se prévaloir de celle-ci dans la même mesure que l’assuré lui-même. " " 7 The act of invoking limitation of liability shall not constitute an admission of liability. " " 7 " " Le fait d’invoquer la limitation de la responsabilité n’emporte pas la reconnaissance de cette responsabilité. " [ 27 ] " “Maritime claims” " as defined in s 24 of the MLA , mean claims described in

Article 2 of the LLMC. Articles 3 and 4 set out certain limitations to these claims. "

Article 2 " "

Article 2 " " Claims subject to limitation " " Créances soumises à la limitation " " 1 Subject to Articles 3 and 4 the following claims, whatever the basis of liability may be, shall be subject to limitation of liability: " " 1 " "

Sous réserves des articles 3 et 4, les créances suivantes, quel que soit le fondement de la responsabilité, sont soumises à la limitation de la responsabilité : " " (

a) claims in respect of loss of life or personal injury or loss of or damage to property (including damage to harbour works, basins and waterways and aids to navigation), occurring on board or in direct connexion with the operation of the ship or with salvage operations, and consequential loss resulting therefrom; " " a) " " créances pour mort, pour lésions corporelles, pour pertes et pour dommages à tous biens (y compris les dommages causés aux ouvrages d’art des ports, bassins, voies navigables et aides à la navigation) survenus à bord du navire ou en relation directe avec l’exploitation de celui-ci ou avec des opérations d’assistance ou de sauvetage, ainsi que pour tout autre préjudice en résultant; " " (

b) claims in respect of loss resulting from delay in the carriage by sea of cargo, passengers or their luggage; " " b) " " créances pour tout préjudice résultant d’un retard dans le transport par mer de la cargaison, des passagers ou de leurs bagages; "

" (

c) claims in respect of other loss resulting from infringement of rights other than contractual rights, occurring in direct connexion with the operation of the ship or salvage operations; " " c) " " créances pour d’autres préjudices résultant de l’atteinte à tous droits de source extracontractuelle, et survenus en relation directe avec l’exploitation du navire ou avec des opérations d’assistance ou de sauvetage; " " (

d) claims in respect of the raising, removal, destruction or the rendering harmless of a ship which is sunk, wrecked, stranded or abandoned, including anything that is or has been on board such ship; " " d) " " créances pour avoir renfloué, enlevé, détruit ou rendu inoffensif un navire coulé, naufragé, échoué ou abandonné, y compris tout ce qui se trouve ou s’est trouvé à bord; " " (

e) claims in respect of the removal, destruction or the rendering harmless of the cargo of the ship; " " e) " " créances pour avoir enlevé, détruit ou rendu inoffensive la cargaison du navire; " " (

f) claims of a person other than the person liable in respect of measures taken in order to avert or minimize loss for which the person liable may limit his liability in accordance with this Convention, and further loss caused by such measures. " " f) " " créances produites par une personne autre que la personne responsable, pour les mesures prises afin de prévenir ou de réduire un dommage pour lequel la personne responsable peut limiter sa responsabilité conformément à la présente Convention, et pour les dommages ultérieurement causés par ces mesures. " " … " " […] " "

Article 4 " "

Article 4 " " Conduct barring limitation " " Conduite supprimant la limitation " " A person liable shall not be entitled to limit his liability if it is proved that the loss resulted from his personal act or omission, committed with the intent to cause such loss, or recklessly and with knowledge that such loss would probably result. " " Une personne responsable n’est pas en droit de limiter sa responsabilité s’il est prouvé que le dommage résulte de son fait ou de son omission personnels, commis avec l’intention de provoquer un tel dommage, ou commis témérairement et avec conscience qu’un tel dommage en résulterait probablement. " [ 28 ] Thus,

Article 2 describes the claims that are subject to limitation. Specifically, it states that subject to Articles 3 and 4, the claims listed, whatever the basis of liability may be , shall be subject to limitation of liability. For the purposes of these motions, the most relevant provision is claims in respect of damage to property in direct connection with the operation of the ship and consequential loss resulting therefrom (Article 2(1)(a)).

Another potentially relevant provision is claims in respect of other loss resulting from infringement of rights occurring in direct connection with the operation of the ship (Article 2(1)(c)). Certain claims are exempted from limitation and these are set out in

Article 3. For the purposes of these motions, it is of note that the LLMC does not apply to a claim for oil pollution damage within the meaning of the CLC (Article 3(b)). Further, a shipowner will be barred from limiting liability in the circumstances described in

Article 4. The limits of liability for claims arising on any distinct occasion are determined by the ship’s tonnage and a calculation contained in

Article 6. [ 29 ]

Article 9 concerns the aggregation of claims: "

Article 9 " "

Article 9 " " Aggregation of claims " " Concours de créances " " 1 The limits of liability determined in accordance with

Article 6 shall apply to the aggregate of all claims which arise on any distinct occasion: " " 1 " " Les limites de la responsabilité déterminée selon l’article 6 s’appliquent à l’ensemble de toutes les créances nées d’un même événement : " " (

a) against the person or persons mentioned in paragraph 2 of

Article 1 and any person for whose act, neglect or default he or they are responsible; or " " a) " " à l’égard de la personne ou des personnes visées au paragraphe 2 de l’article premier et de toute personne dont les faits, négligences ou fautes entraînent la responsabilité de celle-ci ou de celles-ci; ou " [ 30 ]

Article 11 speaks to the constitution of a limitation fund: "

Article 11 " "

Article 11 " " Constitution of the fund " " Constitution du fonds "

" 1 Any person alleged to be liable may constitute a fund with the Court or other competent authority in any State Party in which legal proceedings are instituted in respect of claims subject to limitation. The fund shall be constituted in the sum of such of the amounts set out in Articles 6 and 7 as are applicable to claims for which that person may be liable, together with interest thereon from the date of the occurrence giving rise to the liability until the date of the constitution of the fund.

Any fund thus constituted shall be available only for the payment of claims in respect of which limitation of liability can be invoked. " " 1 " " Toute personne dont la responsabilité peut être mise en cause peut constituer un fonds auprès du tribunal ou de toute autre autorité compétente de tout État

Partie dans lequel une action est engagée pour des créances soumises à limitation. Le fonds est constitué à concurrence du montant tel qu’il est calculé selon les dispositions des articles 6 et 7 applicables aux créances dont cette personne peut être responsable, augmenté des intérêts courus depuis la date de l’événement donnant naissance à la responsabilité jusqu’à celle de la constitution du fonds. Tout fonds ainsi constitué n’est disponible que pour régler les créances à l’égard desquelles la limitation de la responsabilité peut être invoquée.

" " 2 A fund may be constituted, either by depositing the sum, or by producing a guarantee acceptable under the legislation of the State Party where the fund is constituted and considered to be adequate by the Court or other competent authority. " " 2 " " Un fonds peut être constitué, soit en consignant la somme, soit en fournissant une garantie acceptable en vertu de la législation de l’État

Partie dans lequel le fonds est constitué, et considérée comme adéquate par le tribunal ou par toute autre autorité compétente. " " 3 A fund constituted by one of the persons mentioned in paragraph 1(a), (

b) or (

c) or paragraph 2 of

Article 9 or his insurer shall be deemed constituted by all persons mentioned in paragraph 1(a), (

b) or (

c) or paragraph 2, respectively. " " 3 " " Un fonds constitué par l’une des personnes mentionnées aux alinéas a),

b) ou

c) du paragraphe 1 ou au paragraphe 2 de l’article 9, ou par son assureur, est réputé constitué par toutes les personnes visées aux alinéas a),

b) ou

c) du paragraphe 1 ou au paragraphe 2 respectivement. " [ 31 ]

Article 12 speaks to the distribution of the fund and

Article 13 bars other actions, stating that " “where a limitation fund has been constituted in accordance with

Article 11, any person having made a claim against the fund shall be barred from exercising any right in respect of such claim against any other assets of a person by or on behalf of whom the fund has been constituted” " . [ 32 ] Returning now to the main body of the MLA ,

Part 6 of that Act deals with liability and compensation for pollution. It too incorporates into Canadian law various international conventions to which Canada is a signatory, including the CLC and the Bunkers Convention. "

PART 6 " "

PARTIE 6 " " Liability and Compensation for Pollution " " Responsabilité et indemnisation en matière de pollution " " DIVISION 1 " "

SECTION 1 " " International Conventions " " Conventions internationales " "

Interpretation " " Définitions et interprétation " "

Definitions " " Définitions " " 47

(1) The following

definitions apply in this Division. " " 47 (1) " " Les définitions qui suivent s’appliquent à la présente section.

" " Bunkers Convention means the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001, concluded at London on March 23, 2001. ( " " Convention sur les hydrocarbures de soute ) " " Convention sur les hydrocarbures de soute " " La Convention internationale de 2001 sur la responsabilité civile pour les dommages dus à la pollution par les hydrocarbures de soute, conclue à Londres le 23 mars 2001. ( Bunkers Convention " " ) " " Civil Liability Convention means the International Convention on Civil Liability for Oil Pollution Damage, 1992, concluded at London on November 27, 1992,

Article V of which was amended by the Resolution adopted by the Legal Committee of the International Maritime Organization on October 18, 2000. ( " " Convention sur la responsabilité civile ) " " Convention sur la responsabilité civile " " La Convention internationale de 1992 sur la responsabilité civile pour les dommages dus à la pollution par les hydrocarbures, conclue à Londres le 27 novembre 1992, dont l’article V a été modifié par la résolution adoptée par le Comité juridique de l’Organisation maritime internationale le 18 octobre 2000. ( Civil Liability Convention " " ) " " discharge , in relation to oil and bunker oil, means a discharge of oil or bunker oil that directly or indirectly results in the oil or bunker oil entering the water, and includes spilling, leaking, pumping, pouring, emitting, emptying, throwing and dumping. ( " " rejet ) " " rejet " " S’agissant d’un hydrocarbure ou d’un hydrocarbure de soute, rejet d’un hydrocarbure ou d’un hydrocarbure de soute qui, directement ou indirectement, atteint l’eau, notamment par déversement, fuite, déchargement ou chargement par pompage, rejet liquide, émanation, vidange, rejet solide et immersion. ( discharge " " ) "

" Fund Convention means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992, concluded at London on November 27, 1992,

Article 4 of which was amended by the Resolution adopted by the Legal Committee of the International Maritime Organization on October 18, 2000. ( " " Convention sur le Fonds international ) " " Convention sur le Fonds international " " La Convention internationale de 1992 portant création d’un Fonds international d’indemnisation pour les dommages dus à la pollution par les hydrocarbures, conclue à Londres le 27 novembre 1992, dont l’article 4 a été modifié par la résolution adoptée par le Comité juridique de l’Organisation maritime internationale le 18 octobre 2000. ( Fund Convention " " ) " " … " " […] " " International Fund means the International Oil Pollution Compensation Fund, 1992 established by

Article 2 of the Fund Convention. ( " " Fonds international ) " " Fonds international " " Le Fonds international d’indemnisation de 1992 pour les dommages dus à la pollution par les hydrocarbures constitué par l’article 2 de la Convention sur le Fonds international. ( International Fund " " ) " " … " " […] " " Supplementary Fund means the International Oil Pollution Compensation Supplementary Fund, 2003 established by

Article 2 of the Supplementary Fund Protocol. ( " " Fonds complémentaire ) " " Fonds complémentaire " " Le Fonds complémentaire international d’indemnisation de 2003 pour les dommages dus à la pollution par les hydrocarbures constitué par l’article 2 du Protocole portant création d’un Fonds complémentaire. ( Supplementary Fund " " ) " " Supplementary Fund Protocol means the Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992, concluded at London on May 16, 2003. ( " " Protocole portant création d’un Fonds complémentaire ) " " Protocole portant création d’un Fonds complémentaire " " Le Protocole de 2003 à la Convention internationale de 1992 portant création d’un Fonds international d’indemnisation pour les dommages dus à la pollution par les hydrocarbures, conclu à Londres le 16 mai 2003. ( Supplementary Fund Protocol " " ) " " … " " […] " " Civil Liability Convention " " Convention sur la responsabilité civile " " Force of law " " Force de loi " " 48 Articles I to XI, XII bis and 15 of the Civil Liability Convention – that are set out in

Schedule 5 – have the force of law in Canada. " " 48 " " Les articles I à XI, XII bis et 15 de la Convention sur la responsabilité civile – lesquels figurent à l’annexe 5 – ont force de loi au Canada. " " Contracting State " " État contractant " " 49

(1) For the purposes of the application of the Civil Liability Convention, Canada is a Contracting State. " " 49 (1) " " Pour l’application de la Convention sur la responsabilité civile, le Canada est un État contractant. " " … " " […] " " Admiralty Court’s jurisdiction – limitation fund " " Compétence exclusive de la Cour d’amirauté " " 52

(1) The Admiralty Court has exclusive jurisdiction with respect to any matter relating to the constitution and distribution of a limitation fund under the Civil Liability Convention. " " 52 (1) " " La Cour d’amirauté a compétence exclusive pour trancher toute question relative à la constitution et à la répartition du fonds de limitation aux termes de la Convention sur la responsabilité civile. " " Right to assert limitation defence " " Droit d’invoquer la limite de responsabilité " "

(2) When a claim is made or apprehended against a person in respect of liability that is limited under the Civil Liability Convention, that person may assert their right to a limitation of liability by constituting a fund as required under that Convention and filing a defence, or by way of action or counterclaim for declaratory relief, in the Admiralty Court. " " (2) " " Lorsque la responsabilité d’une personne est limitée aux termes de la Convention sur la responsabilité civile, relativement à une créance — réelle ou appréhendée —, cette personne peut se prévaloir de la limitation de responsabilité en constituant le fonds de limitation requis au

titre de cette convention et en présentant une défense, ou dans le cadre d’une action ou demande reconventionnelle pour obtenir un jugement déclaratoire, devant la Cour d’amirauté. " " Stay of proceedings " " Suspension d’instance "

"

(3) When a fund is constituted in the Admiralty Court, any other court, where an action asserting limitation of liability under the Civil Liability Convention has been commenced, shall stay the proceedings and refer all claims under that Convention to the Admiralty Court. " " (3) " " Une fois le fonds de limitation constitué auprès de la Cour d’amirauté, tout autre tribunal où a été intentée une action où est invoquée la limitation de responsabilité prévue par la Convention sur la responsabilité civile suspend l’instance et renvoie toute créance fondée sur cette convention à la Cour d’amirauté. " " Admiralty Court’s powers " " Pouvoirs de la Cour d’amirauté " " 53

(1) When a claim is made or apprehended against a person in respect of liability that is limited under the Civil Liability Convention, the Admiralty Court, on application by that person or any other interested person, may take any steps that it considers appropriate, including " " 53 (1) " " Lorsque la responsabilité d’une personne est limitée aux termes de la Convention sur la responsabilité civile, relativement à une créance – réelle ou appréhendée –, la Cour d’amirauté peut, à la demande de cette personne ou de tout autre intéressé, prendre toute mesure qu’elle juge indiquée, notamment : " " (

a) determining the amount of the liability and providing for the constitution and distribution of a fund under that Convention; and " " a) " " déterminer le montant de la responsabilité et faire le nécessaire pour la constitution et la répartition du fonds de limitation correspondant, conformément à cette convention; " " (

b) joining interested persons as parties to the proceedings, excluding any claimants who do not make a claim within the time limits set out in

Article VIII of that Convention, requiring security from the person claiming limitation of liability or from any other interested person and requiring the payment of any costs. " " b) " " joindre tout intéressé comme

partie à l’instance, exclure tout créancier forclos en application de l’article VIII de cette convention, exiger une garantie des parties invoquant la limitation de responsabilité ou de tout autre intéressé et exiger le paiement des frais. " " … " " […] " " Procedural matters " " Procédure " "

(3) The Admiralty Court may " " (3) " " La Cour d’amirauté peut : " " (

a) make any rule of procedure that it considers appropriate with respect to proceedings before it under this section; and " " a) " " établir les règles de procédure qu’elle juge utiles relativement à toute affaire dont elle est saisie au

titre du présent article; " " (

b) determine what form of guarantee it considers to be adequate for the purposes of paragraph 3 of

Article V of the Civil Liability Convention. " " b) " " déterminer quelle garantie elle estime acceptable pour l’application du paragraphe 3 de l’article V de la Convention sur la responsabilité civile. " [ 33 ] The text of Articles I to XI, XII bis and 15 of the CLC are set out in

Schedule 5 of the MLA . Again, for ease of reference, the most relevant Articles are addressed here. [ 34 ]

Article 1 of the CLC contains various

definitions, including: "

ARTICLE I " "

ARTICLE PREMIER " " For the purposes of this Convention: " " Au sens de la présente Convention : " " … " " […] " " 5 Oil means any persistent hydrocarbon mineral oil such as crude oil, fuel oil, heavy diesel oil and lubricating oil, whether carried on board a ship as cargo or in the bunkers of such a ship. " " 5 " " Hydrocarbures signifie tous les hydrocarbures minéraux persistants, notamment le pétrole brut, le fuel-oil, l’huile diesel lourde et l’huile de graissage, qu’ils soient transportés à bord d’un navire en tant que cargaison ou dans les soutes de ce navire. " " 6 Pollution damage means: " " 6 " " Dommage par pollution signifie : " " (

a) loss or damage caused outside the ship by contamination resulting from the escape or discharge of oil from the ship, wherever such escape or discharge may occur, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs of reasonable measures of reinstatement actually undertaken or to be undertaken; " " a) " " le préjudice ou le dommage causé à l’extérieur du navire par une contamination survenue à la suite d’une fuite ou d’un rejet d’hydrocarbures du navire, où que cette fuite ou ce rejet se produise, étant entendu que les indemnités versées au

titre de l’altération de l’environnement autres que le manque à gagner dû à cette altération seront limitées au coût des mesures raisonnables de remise en état qui ont été effectivement prises ou qui le seront; " " (

b) the costs of preventive measures and further loss or damage caused by preventive measures. " " b) " " le coût des mesures de sauvegarde et les autres préjudices ou dommages causés par ces mesures. "

" 7 Preventive measures means any reasonable measures taken by any person after an incident has occurred to prevent or minimize pollution damage. " " 7 " " Mesures de sauvegarde signifie toutes mesures raisonnables prises par toute personne après la survenance d’un événement pour prévenir ou limiter la pollution. " " 8 Incident means any occurrence, or series of occurrences having the same origin, which causes pollution damage or creates a grave and imminent threat of causing such damage.

" " 8 " " Événement signifie tout fait ou tout ensemble de faits ayant la même origine et dont résulte une pollution ou qui constitue une menace grave et imminente de pollution. " [ 35 ] Articles III and IV speak to shipowner liability for pollution damage caused by the ship, including the circumstances in which a shipowner will not be entitled to limit liability: "

ARTICLE III " "

ARTICLE III " " 1 Except as provided in paragraphs 2 and 3 of this Article, the owner of a ship at the time of an incident, or, where the incident consists of a series of occurrences, at the time of the first such occurrence, shall be liable for any pollution damage caused by the ship as a result of the incident.

" " 1 " " Le propriétaire du navire au moment d’un événement ou, si l’événement consiste en une succession de faits, au moment du premier de ces faits, est responsable de tout dommage par pollution causé par le navire et résultant de l’événement, sauf dans les cas prévus aux paragraphes 2 et 3 du présent article. " " … " " […] " " 4 No claim for compensation for pollution damage may be made against the owner otherwise than in accordance with this Convention.

Subject to paragraph 5 of this Article, no claim for compensation for pollution damage under this Convention or otherwise may be made against: " " 4 " " Aucune demande de réparation de dommage par pollution ne peut être formée contre le propriétaire autrement que sur la base de la présente Convention.

Sous réserve du paragraphe 5 du présent article, aucune demande de réparation de dommage par pollution, qu’elle soit ou non fondée sur la présente Convention, ne peut être introduite contre : " " (

a) the servants or agents of the owner or the members of the crew; " " a) " " les préposés ou mandataires du propriétaire ou les membres de l’équipage; " " (

b) the pilot or any other person who, without being a member of the crew, performs services for the ship; " " b) " " le pilote ou toute autre personne qui, sans être membre de l’équipage, s’acquitte de services pour le navire; " " (

c) any charterer (howsoever described, including a bareboat charterer), manager or operator of the ship; " " c) " " tout affréteur (sous quelque appellation que ce soit, y compris un affréteur coque nue), armateur ou armateur-gérant du navire; " " (

d) any person performing salvage operations with the consent of the owner or on the instructions of a competent public authority; " " d) " " toute personne accomplissant des opérations de sauvetage avec l’accord du propriétaire ou sur les instructions d’une autorité publique compétente; " " (

e) any person taking preventive measures; " " e) " " toute personne prenant des mesures de sauvegarde; " " (

f) all servants or agents of persons mentioned in subparagraphs (c), (

d) and (e); " " f) " " tous préposés ou mandataires des personnes mentionnées aux alinéas c),

d) et e); " " unless the damage resulted from their personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result. " " à moins que le dommage ne résulte de leur fait ou de leur omission personnels, commis avec l’intention de provoquer un tel dommage, ou commis témérairement et avec conscience qu’un tel dommage en résulterait probablement. " " … " " […] " "

ARTICLE V " "

ARTICLE V " " 1 The owner of a ship shall be entitled to limit his liability under this Convention in respect of any one incident to an aggregate amount calculated as follows: " " 1 " " Le propriétaire d’un navire est en droit de limiter sa responsabilité aux termes de la présente Convention à un montant total par événement calculé comme suit : " " (a) 4,510,000 units of account for a ship not exceeding 5,000 units of tonnage; " " a) " " 4 510 000 d’unités de compte pour un navire dont la jauge ne dépasse pas 5 000 unités; " " (

b) for a ship with a tonnage in excess thereof, for each additional unit of tonnage, 631 units of account in addition to the amount mentioned in sub-paragraph (a); " " b) " " pour un navire dont la jauge dépasse ce nombre d’unités, pour chaque unité de jauge supplémentaire, 631 unités de compte en sus du montant mentionné à l’alinéa a); " " provided, however, that this aggregate amount shall not in any event exceed 89,770,000 units of account. " " étant entendu toutefois que le montant total ne pourra en aucun cas excéder 89 770 000 d’unités de compte. "

" 2 The owner shall not be entitled to limit his liability under this Convention if it is proved that the pollution damage resulted from his personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result.

" " 2 " " Le propriétaire n’est pas en droit de limiter sa responsabilité aux termes de la présente Convention s’il est prouvé que le dommage par pollution résulte de son fait ou de son omission personnels, commis avec l’intention de provoquer un tel dommage, ou commis témérairement et avec conscience qu’un tel dommage en résulterait probablement. " [ 36 ] Returning once again to the provisions of the MLA , Division 1 of the MLA addresses the Bunkers Convention. [ 37 ]

Section 69 of the MLA states that Articles 1 to 10 of the Bunkers Convention, which are set out in

Schedule 8 to the MLA , have force of law in Canada. It is significant to note that pursuant to s 72 of the MLA ,

Part 3 of the MLA (Limitation of Liability for Maritime Claims) also applies to claims arising under the Bunkers Convention. Thus, for the purposes of these motions, while there is general agreement that the Bunkers Convention has application, reference will also be made to the LLMC to the extent that it applies to claims arising under the Bunkers Convention, including limitation of liability. [ 38 ]

Article 1 of the Bunker Convention contains various

definitions including: "

ARTICLE 1 " "

ARTICLE 1 " "

Definitions " " Définitions " " For the purposes of this Convention: " " Aux fins de la présente Convention : " " … " " […] " " 5 Bunker oil means any hydrocarbon mineral oil, including lubricating oil, used or intended to be used for the operation or propulsion of the ship, and any residues of such oil. " " 5 " " Hydrocarbures de soute signifie tous les hydrocarbures minéraux, y compris l’huile de graissage, utilisés ou destinés à être utilisés pour l’exploitation ou la propulsion du navire, et les résidus de tels hydrocarbures.

" " … " " […] " " 7 Preventive measures means any reasonable measures taken by any person after an incident has occurred to prevent or minimize pollution damage. " " 7 " " Mesures de sauvegarde signifie toutes mesures raisonnables prises par toute personne après la survenance d’un événement pour prévenir ou limiter le dommage par pollution. " " 8 Incident means any occurrence or series of occurrences having the same origin, which causes pollution damage or creates a grave and imminent threat of causing such damage.

" " 8 " " Événement signifie tout fait ou tout ensemble de faits ayant la même origine et dont résulte un dommage par pollution ou qui constitue une menace grave et imminente de dommage par pollution. " " 9 Pollution damage means: " " 9 " " Dommage par pollution signifie : " " (

a) loss or damage caused outside the ship by contamination resulting from the escape or discharge of bunker oil from the ship, wherever such escape or discharge may occur, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs of reasonable measures of reinstatement actually undertaken or to be undertaken; and " " a) " " le préjudice ou le dommage causé à l’extérieur du navire par contamination survenue à la suite d’une fuite ou d’un rejet d’hydrocarbures de soute du navire, où que cette fuite ou ce rejet se produise, étant entendu que les indemnités versées au

titre de l’altération de l’environnement autres que le manque à gagner dû à cette altération seront limitées au coût des mesures raisonnables de remise en état qui ont été effectivement prises ou qui le seront; et " " (

b) the costs of preventive measures and further loss or damage caused by preventive measures. " " b) " " le coût des mesures de sauvegarde et les autres préjudices ou dommages causés par ces mesures. " [ 39 ] Article 3(1) states that, except as provided in Article 3(3) and (4), shipowners shall be liable for pollution damage caused by any bunker oil onboard or originating from the ship.

Article 4 states that the Bunker Convention shall not apply to pollution damage as defined by the CLC.

Article 6 provides for the limitation of liability of shipowners: "

ARTICLE 6 " "

ARTICLE 6 " " Limitation of Liability " " Limitation de la responsabilité " " Nothing in this Convention shall affect the right of the shipowner and the person or persons providing insurance or other financial security to limit liability under any applicable national or international regime, such as the Convention on Limitation of Liability for Maritime Claims, 1976, as amended.

" " Aucune disposition de la présente Convention n’affecte le droit du propriétaire du navire et de la personne ou des personnes qui fournissent l’assurance ou autre garantie financière de limiter leur responsabilité en vertu de tout régime national ou international applicable, tel que la Convention de 1976 sur la limitation de la responsabilité en matière de créances maritimes, telle que modifiée. " [ 40 ] Returning again to the provisions in the main body of the MLA ,

Part 6, Division 2, of the MLA pertains to liability not covered by

[ 40 ] Returning again to the provisions in the main body of the MLA ,

Part 6, Division 2, of the MLA pertains to liability not covered by Division 1: " DIVISION 2 " "

SECTION 2 " " Liability Not Covered by Division 1 " " Responsabilité non visée par la

section 1 " "

Interpretation " " Définitions " "

Definitions " " Définitions " " 75 The following

definitions apply in this Division. " " 75 " " Les définitions qui suivent s’appliquent à la présente section.

" " … " " […] " " oil means oil of any kind or in any form and includes petroleum, fuel oil, sludge, oil refuse and oil mixed with wastes but does not include dredged spoil. ( " " hydrocarbures ) " " hydrocarbures " " Les hydrocarbures de toutes sortes sous toutes leurs formes, notamment le pétrole, le fioul, les boues, les résidus d’hydrocarbures et les hydrocarbures mélangés à des déchets, à l’exclusion des déblais de dragage. ( oil " " ) " " oil pollution damage , in relation to any ship, means loss or damage outside the ship caused by contamination resulting from the discharge of oil from the ship. ( " " dommages dus à la pollution par les hydrocarbures ) " " dommages dus à la pollution par les hydrocarbures " " S’agissant d’un navire, pertes ou dommages extérieurs au navire et causés par une contamination résultant du rejet d’hydrocarbures par ce navire. ( oil pollution damage " " ) " " … " " […] " " pollutant means oil and any substance or class of substances identified by the regulations as a pollutant for the purposes of this Part and includes " " polluant " " Les hydrocarbures, les substances qualifiées par règlement, nommément ou par catégorie, de polluantes pour l’application de la présente

partie et, notamment : " " (

a) a substance that, if added to any waters, would degrade or alter or form part of a process of degradation or alteration of the waters’ quality to an extent that their use would be detrimental to humans or animals or plants that are useful to humans; and " " a) " " les substances qui, ajoutées à l’eau, produiraient, directement ou non, une dégradation ou altération de sa qualité de nature à nuire à son utilisation par les êtres humains ou par les animaux ou les plantes utiles aux êtres humains; " " (

b) any water that contains a substance in such a quantity or concentration, or that has been so treated, processed or changed, by heat or other means, from a natural state that it would, if added to any waters, degrade or alter or form part of a process of degradation or alteration of the waters’ quality to an extent that their use would be detrimental to humans or animals or plants that are useful to humans. ( " " polluant ) " " b) " " l’eau qui contient une substance en quantité ou concentration telle — ou qui a été chauffée ou traitée ou transformée depuis son état naturel de façon telle — que son addition à l’eau produirait, directement ou non, une dégradation ou altération de la qualité de cette eau de nature à nuire à son utilisation par les êtres humains ou par les animaux ou les plantes utiles aux êtres humains. ( pollutant " " ) " " pollution damage , in relation to any ship, means loss or damage outside the ship caused by contamination resulting from the discharge of a pollutant from the ship. ( " " dommages dus à la pollution ) " " dommages dus à la pollution " " S’agissant d’un navire, pertes ou dommages extérieurs au navire et causés par une contamination résultant du rejet d’un polluant par ce navire. ( pollution damage " " ) " [ 41 ] Pursuant to s 77, shipowners are liable for oil pollution damage from their ship, and related costs and expenses reasonably incurred to prevent, repair, remedy or minimize such damage, as described in those provisions and, pursuant to s 77(2), for environmental damage: " Liability for environmental damage " " Responsabilité : dommage à l’environnement " " 77

(2) If oil pollution damage from a ship results in impairment to the environment, the owner of the ship is liable for the costs of reasonable measures of reinstatement undertaken or to be undertaken. " " 77 (2) " " Lorsque des dommages dus à la pollution par les hydrocarbures causée par un navire ont des conséquences néfastes pour l’environnement, le propriétaire du navire est responsable des frais occasionnés par les mesures raisonnables de remise en état qui sont prises ou qui le seront. " [ 42 ]

Part 6, Division 3 of the MLA concerns the jurisdiction of this Court: " DIVISION 3 " "

SECTION 3 " " General Provisions " " Dispositions générales " " Admiralty Court " " Cour d’amirauté " " Jurisdiction " " Compétence "

" 79

(1) The Admiralty Court has jurisdiction with respect to claims for compensation brought in Canada under any convention under Division 1 and claims for compensation under Division 2. " " 79 (1) " " La Cour d’amirauté a compétence à l’égard de toute demande d’indemnisation présentée au Canada en vertu d’une convention visée à la

section 1 et de celle présentée en vertu de la

section 2. " " Jurisdiction may be exercised in rem " " Compétence – action réelle " "

(2) The jurisdiction conferred on the Admiralty Court may be exercised 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. " " (2) " " La compétence de la Cour d’amirauté peut s’exercer par voie d’action réelle contre le navire qui fait l’objet de la demande ou à l’égard du produit de la vente de celui-ci déposé au tribunal. " [ 43 ]

Part 7 of the MLA concerns the Ship-source Oil Pollution Fund. This is a complex regime but, as described in the submissions of the SOPF, it is a special purpose account in the accounts of Canada established to facilitate the indemnification of claims of ship-source oil pollution in Canadian waters while protecting the tax payer. The SOPF is represented by its Administrator ( MLA s 92, 94(1)). Pursuant to s 101(1) of the MLA , and subject to other provisions of

Part 7, the SOPF is liable for loss, damage, costs or expenses relating to oil pollution from ships, referred to in s 51, 71 and 77 of the MLA ,

Article III of the CLC, and

Article 3 of the Bunkers Convention relating to pollution damage, if certain criteria are met. These criteria include, in accordance with s 101(1)(c), that the claim exceeds the shipowner’s maximum liability under the CLC (to the extent that the excess is not recoverable under the International Fund or the Supplemental Fund), or the owner’s maximum liability under

Part 3 of the MLA . In other words, where s 101(1) of the MLA applies, the Administrator can be held liable for the amount a shipowner would otherwise have been held liable under

Part 6 of the MLA . [ 44 ] In addition to any rights against the SOPF under s 101 of the MLA , claims may be filed directly with the Administrator, pursuant to s 103 and/or s 107 of the MLA . [ 45 ] When a claimant commences proceedings against a shipowner or the ship itself, in rem , s 109 of the MLA mandates that the Administrator appear and take action, as she deems appropriate, for the proper administration of the SOPF: " Proceedings against owner of ship " " Action contre le propriétaire d’un navire " " 109

(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, " " 109 (1) " " À l’exception des actions fondées sur l’alinéa 77(1)

c) intentées par le ministre des Pêches et des Océans à l’égard d’un polluant autre que les hydrocarbures, les règles ci-après s’appliquent aux actions en responsabilité fondées sur les articles 51, 71 ou 77, l’article III de la Convention sur la responsabilité civile ou l’article 3 de la Convention sur les hydrocarbures de soute intentées contre le propriétaire d’un navire ou son garant : " " (

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 " " a) " " l’acte introductif d’instance doit être signifié à l’administrateur – soit par la remise à celui-ci d’une copie en main propre, soit par le dépôt d’une copie au lieu de sa dernière résidence connue – qui devient de ce fait

partie à l’instance; " " (

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. " " b) " " l’administrateur doit comparaître et prendre les mesures qu’il juge à propos pour la bonne gestion de la Caisse d’indemnisation, notamment conclure une transaction avant ou après jugement. " " If Administrator party to settlement " " Règlement d’une affaire " "

(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. " " (2) " " Dans le cas où il conclut une transaction en application de l’alinéa (1)b), l’administrateur ordonne le versement au demandeur, par prélèvement sur la Caisse d’indemnisation, du montant convenu.

" [ 46 ] The Administrator submits that, as a limitation action is essentially an action against a fund constituted to stand in place of the polluting ship, in this case the tug and barge, the Administrator is a party to the Limitation Action and considers it proper to make submissions in the subject motions. The Administrator also appears as a party by statute in the BCSC Claim. VI.

Positions of the Parties [ 47 ] While there are two motions before this Court, there is overlap of fact and law concerning the issue of enjoining Heiltsuk from continuing its action against the Kirby Defendants in the BCSC Claim, and the issue of whether or not to stay Kirby’s Limitation Action in this Court. The written submissions of the parties reflect and acknowledge this and, when summarizing the positions of the parties below, I have not wholly segregated their respective enjoinment and stay submissions.

A. Kirby’s Submissions [48] Kirby submits that it is appropriate for this Court to exercise its exclusive jurisdiction to constitute and distribute a LLMC fund, andthat it should do so and adjudicate the Limitation Action. In doing so, it says that Heiltsuk should be enjoined from continuing the BCSCClaim against the Kirby Defendants in that proceeding. [49] Kirby submits that the claims against the Kirby Defendants in the BCSC Claim are governed by the Bunkers Convention and aresubject to the limitation of liability provisions set out in the LLMC.

Pursuant to s 32(2) of the MLA, a shipowner asserting a right tolimitation of liability under the LLMC may do so "“in any court of competent jurisdiction in Canada”". Kirby relies on the Federal Courtof Appeal’s decision in Siemens Canada Limited v JD Irving Limited, 2012 FCA 225 [JD Irving FCA], for the proposition that, as theshipowner, Kirby has the right to choose the forum in which it asserts its limitation claim. And, once it has done so, Kirby submits thatits choice cannot be overridden by this Court or by the BCSC (JD Irving FCA at paras 50 and 115).

Further, s 32(1) of the MLA providesthat this Court "“has exclusive jurisdiction with respect to the constitution and distribution of a limitation fund”" under the LLMC.

Whilethis Court does not have exclusive jurisdiction over all actions in which a shipowner asserts its rights under the LLMC, the Federal Courtof Appeal in JD Irving FCA stated that, practically speaking, the Federal Court does have exclusive jurisdiction over such limitationproceedings (JD Irving FCA at paras 91-92 and 116). [50] In Kirby’s view, the Incident is clearly a matter of maritime law and, regardless of how Heiltsuk has framed its claims in the BCSCClaim, the claims all relate to pollution damage allegedly resulting from the Incident.

Kirby can, therefore, exercise its statutory right,pursuant to the MLA, to limit its liability in the Federal Court. [51] Regarding the constitution of an LLMC limitation fund, Kirby submits it is appropriate to do so at this stage. Its motion fordirections made pursuant to s 33 of the MLA is interlocutory in nature and simply seeks directions that a fund be constituted, along withother related directions. To delay the constitution of the fund would erode the protection of the shipowner intended by the MLA.

Thedetermination of whether the shipowner is actually entitled to limit its liability will occur only after evidence has been adduced at alimitation trial in this Court (JD Irving, Limited v Siemens Canada Limited, 2011 FC 791 [JD Irving FC] at paras 81-84; JD Irving FCAat para 20). [52] Should this Court grant the request to constitute an LLMC limitation fund, then the amount of the fund is determined by

Article 6 ofthe LLMC based on tonnage of the ship in question. Kirby asserts that, although joined at the time of the Incident, in the circumstancesof this matter the tug and barge do not constitute one vessel (Rhone (The) v Peter AB Widener (The), (SCC), [1993] 1SCR 497 at 541, 101 DLR (4th) 188 [The Rhone]; Bayside Towing Ltd v Canadian Pacific Railway, (FC), [2001] 2FC 258 at para 36 [Bayside]).

Therefore, it submits that the LLMC fund should only be calculated based on the tonnage of the tug, andtherefore should total 1.51 million Special Drawing Rights [SDRs], or approximately CAD $2.73 million. [53] With respect to an order enjoining Heiltsuk from continuing its proceeding against the Kirby Defendants in the BCSC Claim, Kirbynotes that when a claim is made against a party in respect of liability that is limited under the LLMC, s 33 of the MLA permits the Courtto take "“any steps it considers appropriate”" including "“enjoining any person from commencing or continuing proceedings in anycourt, tribunal or authority other than the Admiralty Court in relation to the same subject-matter”".

Kirby submits that the test to beapplied by this Court is that of "“appropriateness”" and not the Amchem Products Incorporated v British Columbia (Workers’Compensation Board), (SCC), [1993] 1 SCR 897, 102 DLR (4th) 96 [Amchem] or RJR-MacDonald Inc v Canada(Attorney General), (SCC), [1994] 1 SCR 311, 111 DLR (4th) 385 [RJR-MacDonald] tests.

It submits that such anorder is appropriate as this Court has jurisdiction over all claims arising from the Incident (Federal Courts Act, RSC 1985, c F-7, s 22[Federal Courts Act]), and that the subject matter of both the BCSC Claim (as pertaining to the Kirby Defendants in that matter) and theLimitation Action in this Court is the same – namely, the Incident. Further, the very purpose of the limitation regime is to avoid multipleproceedings and it would therefore not be reasonable to allow Heiltsuk to pursue their BCSC Claim prior to a determination of Kirby’sright to limit its liability.

Enjoining the BCSC Claim would result in cost savings for the parties, it would prevent a multiplicity ofproceedings, cause no prejudice to Heiltsuk, and avoid the significant prejudice to Kirby should it be obligated to participate in whatcould be a decades-long dispute over complex Aboriginal title and rights claims. While Heiltsuk advances these claims against thefederal and provincial governments in the BCSC Claim, they are entirely unrelated to the Incident in respect of which limitation is beinginvoked.

This is contrary to the very purpose of a limitation action under the MLA. [54] Finally, Kirby asserts that it has not attorned to the jurisdiction of the BCSC as Heiltsuk submits. The Kirby Defendants in theBCSC Claim have taken no steps to defend that matter on its merits and the only steps they have taken, filing the Jurisdictional Responseand Notice of Application, have been to dispute the jurisdiction of the BCSC. Nor has Kirby attorned to the jurisdiction of the BCSC byway of the HTC LOU or by alleged non-compliance with the BCSC Civil Rules.

Moreover, attornment to the BCSC has no relevancebecause the Limitation Action in this Court is a

summary proceeding that is concerned only with the discrete issue of whether Kirby isentitled to limit its liability under the MLA. [55] As to Heiltsuk’s Stay Motion, the Federal Court of Appeal in JD Irving FCA held that the applicable provision for determiningwhether it is warranted to stay a limitation action commenced in the Federal Court pursuant to the MLA, due to the commencement of aliability action in another forum, is section 50(1)(

b) of the Federal Courts Act and the test in Mon-Oil Ltd v Canada, [1989] 26 CRP (3d)379, 27 FTR 50 (FC) [Mon-Oil]. Contrary to Heiltsuk’s submissions, s 50(1)(

a) has no application (JD Irving FCA at para 125-127).Kirby also submits that the forum non conveniens analysis, which Heiltsuk submits should be included in a determination of whether astay should be granted under s 50(1) of the Federal Courts Act, is inapplicable, based on JD Irving FCA.

It further submits that the caselaw relied upon by Heiltsuk in favour of the forum non conveniens test concerns s 46(1) of the MLA, which is unrelated to the subjectmatter of this proceeding. [56] Further, Kirby says that even if this Court does not have jurisdiction to grant Heiltsuk’s claim for Aboriginal title and rights, thisCourt does have jurisdiction to determine the legal question of whether the limitation regime set out in the MLA would unduly andunjustifiably infringe upon the asserted rights.

The constitutionality of the limitation regime can be determined by this Court based on anassumption of the existence of the claimed title and rights. That approach would avoid Heiltsuk actually having to establish itsAboriginal rights and title within the Limitation Action. In addition, Heiltsuk has not particularized exactly what claims for pollution

damages they would be precluded from advancing under the Bunkers Convention, or the CLC, without first establishing Aboriginal rights or title. Nor have they pursued a claim concerning their Aboriginal title and rights which they filed in 2003 in the BCSC. Thus, they have not established that a stay is necessary. Kirby also submits that it is not seeking a permanent stay of the BCSC Claim against all defendants to that proceeding.

Rather, it is seeking to temporarily enjoin Heiltsuk from proceeding in the BCSC Claim against the Kirby Defendants alone, and only until the Limitation Action is adjudicated by this Court. In this regard, should a trial be necessary for establishing liability and quantifying damages after the Limitation Action, because Kirby has been found not to be entitled to limit its liability or because the provisions of the MLA are found to be unconstitutional, Kirby has agreed that such an action may proceed before the BCSC. B.

Heiltsuk’s Submissions [ 57 ] Heiltsuk opposes the constitution of a limitation fund by Kirby in the Federal Court and the enjoinment of Heiltsuk’s proceeding in the BCSC Claim.

Heiltsuk seeks a stay of proceedings and submits that the grounds for such a stay are also grounds for this Court to refuse to constitute a limitation fund and to refuse to enjoin the BCSC Claim. [ 58 ] Heiltsuk responds to Kirby’s request for enjoinment by submitting that although the choice of forum by a shipowner is important, such an election does not automatically oust the power of the Court to decline jurisdiction, relying on Magic Sportswear Corp v Mathilde Maersk (The) , 2006 FCA 284 [ Magic Sportswear ]).

Heiltsuk asserts the Federal Court of Appeal in JD Irving FCA failed to consider its own prior decision in Magic Sportswear and did not overrule the principle stated in that case that the Court presumptively retains its power to decline jurisdiction under s 50(1) of the Federal Courts Act .

As a result, Heiltsuk argues that JD Irving FCA is an incomplete answer to the issue before this Court and that it can still, in its discretion, decline jurisdiction under s 50(1) of the Federal Courts Act . [ 59 ] Heiltsuk submits that there are good reasons for this Court to voluntarily decline jurisdiction on the basis of a more convenient forum. These include the fact that Kirby agreed to voluntarily submit to the jurisdiction of the BCSC by way of a binding agreement, the HTC LOU.

Although the Federal Court has exclusive jurisdiction over the constitution and distribution of a limitation fund, the MLA does not address what parties may agree to contractually. As

Article 11 of the LLMC allows a shipowner to constitute a fund with the Court or other competent authority in any State Party in which legal proceedings are instituted, nothing prevents Heiltsuk and Kirby from agreeing that the BCSC can hold a limitation fund as a competent authority.

Further, Kirby has submitted to the jurisdiction of the BCSC by way of the HTC LOU and also attorned to its jurisdiction by failing to contest jurisdiction within the time specified by the BCSC Civil Rules after filing its Jurisdictional Response. [ 60 ] In addition, Heiltsuk claims that it will face significant prejudice if it is forced to proceed in the Federal Court. In the BCSC Claim it is advancing a claim to Aboriginal title and other rights impacted by the Incident, which it cannot do in the Federal Court as this Court lacks jurisdiction.

Heiltsuk states that its Aboriginal title claims are integral to its claims against Kirby. In that regard, while bringing a claim under the MLA and the Bunkers Convention, Heiltsuk is also challenging the constitutionality of certain aspects of the MLA that it says interfere with its Aboriginal rights and title. Specifically, it challenges the provisions of the MLA that prohibit it from recovering certain types of damages from shipowners for interference with its Aboriginal rights and title. Further, He

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