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CANADA Law and Practice Contributed by: Rui Fernandes, Andrea Fernandes and Conal Calvert, Gardiner Roberts LLP

3.5 Procedure and Requirements for Establishing a Limitation Fund

Canada has also incorporated the International Regu - lations for Preventing Collisions at Sea (COLREGs) of 1972 into its domestic Collision Regulations under the Canada Shipping Act 2001, which establishes the rules for safe navigation and preventing collisions, and dictates post-collision duties. Canada made certain domestic modifications and supplementations to the COLREGs. As for salvage, in 1996 Canada ratified and entered into force the International Convention on Salvage, 1989, subject to a reservation that the convention does not apply when the property involved is mari - time cultural property of prehistoric, archaeological or historic interest and is situated on the seabed. The Canada Shipping Act 2001 implements this conven - tion directly in Schedule 3. Canada’s Marine Liability Act 2001 defines “salvor” and enables limitation of liability under the International Convention on Limita - tion of Liability for Maritime Claims (LLMC). 3.3 Convention on Limitation of Liability for Maritime Claims Canada ratified the 1996 Protocol on 9 May 2008 and it entered into force on 7 August 2008. The 1996 Protocol is incorporated into Canadian domestic law through the Marine Liability Act 2001. However, Can - ada has taken a reservation on the application of the LLMC to claims related to wreck removal. Ship-own - ers are not able to limit liability for claims related to the raising, removal, destruction or rendering harmless of a ship that is sunk, wrecked, stranded or abandoned. Canada also extended the application domestically to non-seagoing vessels. The 2012 amendments to the 1996 Protocol have not been ratified or implemented. 3.4 Vienna Convention on the Law of Treaties Canada acceded to the 1969 Vienna Convention on the Law of Treaties on 14 October 1970 and the con - vention entered into force on 27 January 1980. Courts may apply its interpretative framework to international treaties incorporated into domestic law. For the Con - vention on Limitation of Liability for Maritime Claims and 1996 Protocol, which came into force after the 1969 Vienna Convention on the Law of Treaties, Cana - dian courts can apply the Vienna rules to interpret their domestic effect under Canada’s Marine Liability Act.

Under Canada’s Marine Liability Act 2001 (MLA), establishing a limitation fund for maritime claims fol - lows the legal structure based on the Convention on Limitation of Liability for Maritime Claims 1976 and its 1996 Protocol (LLMC). Under the MLA, persons entitled to limit liability are: the owner, charterer, manager and operator of all ships (and not just “seagoing” ships) and any person with an interest in or possession of a ship. Additionally, an owner of a dock, canal or port may also limit liability. The person seeking limitation applies to the Federal Court (Admiralty Court) in Canada. The person may assert the right to limitation of liability in a defence filed, or by way of action or counterclaim for declara - tory relief. The limits of liability are generally calculated based on the ship’s gross tonnage and, for passenger ships, the number of passengers. The limits of liability are established by Articles 6 and 7 of the LLMC and Sections 28, 29 and 30 of the MLA. A deposit is required; however, the Federal Court may determine what form of guarantee it considers to be adequate for the purposes of paragraph 2 of Article 11 of the LLMC. 3.6 Seafarers’ Safety and Owners’ Liability Canada ratified the Maritime Labour Convention, 2006 (MLC) on 15 June 2010 and the convention took effect in Canada on 20 August 2013. Various regulations under the Canada Shipping Act 2001, such as the Marine Personnel Regulations (Part 3) and the Vessel Construction and Equipment Regulations (SOR/2023- 257), implement provisions of the MLC. The Merchant Seaman Compensation Act 1985 (c. M-6) provides compensation to seafarers for injuries and workplace accidents, supplementing the MLC protections. The Canada Labour Code (R.S.C. 1985, c. L-2) through the Maritime Occupational Health and Safety Regula - tions (SOR/2010-120) also applies to seafarers aboard Canadian-registered ships.

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