Bill S-2

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Claimant may sue owner's guarantor	62. A claimant may commence an action against a guarantor of the owner of a Convention ship in respect of a matter referred to in subsection 51(1) and, in that event,
	(a) the guarantor is entitled to establish the defences affecting the owner's liability set out in subsection 51(3) and, in addition, may establish as a defence that the occurrence resulted from the wilful misconduct of the owner;
	(b) the guarantor may not plead as a defence the bankruptcy or winding-up of the owner;
	(c) irrespective of whether the owner is entitled to limitation of liability, the guarantor is entitled to limitation of liability in respect of claims made by virtue of this section to the same amount and in like manner as an owner is entitled to limitation of liability under this Part; and
	(d) if the owner of a Convention ship and the guarantor each applies to the Admiralty Court in accordance with subsection 58(2) in order to limit their liability, any amount paid into court or filed as a guarantee pursuant to either application shall be treated as paid or filed also pursuant to the other application.
	Registration of Foreign Judgments
Definitions	63. The definitions in this section apply in this section and in sections 64 to 71.
``foreign judgment'' « jugement étranger »	``foreign judgment'' means a judgment of a court of a state other than Canada that is a party to the Civil Liability Convention in respect of a liability described in Article III of that Convention, resulting from an occurrence after the entry into force of that Convention for Canada.
``judgment creditor'' « bénéficiaire du jugement »	``judgment creditor'' means a person in whose favour a foreign judgment was rendered, and includes the person's assigns, heirs, executors, liquidators of the succession, administrators and other legal representatives.
``judgment debtor'' « débiteur »	``judgment debtor'' means a person against whom a foreign judgment was rendered, and includes a person against whom the foreign judgment is enforceable under the law of the state in which it was rendered.
Registration of foreign judgments	64. (1) If a foreign judgment has been rendered, the judgment creditor may, at any time during which the foreign judgment is enforceable in the state in which it was rendered, apply to the Admiralty Court in accordance with its rules to have the foreign judgment registered in that Court.
Court may register foreign judgment	(2) On an application made under subsection (1), the Admiralty Court may, subject to subsections (3) and (4) and section 67, order the registration of the foreign judgment if it is satisfied
	(a) that a case for registration has been made; and
	(b) that the foreign judgment is not under appeal and is no longer subject to appeal in the state in which it was rendered.
If judgment debtor appears	(3) If, under the rules of the Admiralty Court, the judgment debtor appears at the hearing of an application made under subsection (1), that Court may not order the registration of the foreign judgment if it is satisfied that
	(a) the foreign judgment has been fully satisfied;
	(b) the foreign court acted without jurisdiction;
	(c) the foreign judgment was obtained by fraud; or
	(d) the defendant in the foreign action was not given reasonable notice and a fair opportunity to present their case.
When judgment partly satisfied	(4) On any application made under subsection (1), if the Court is satisfied that the foreign judgment has been partly satisfied, the foreign judgment shall be ordered to be registered only in respect of the balance remaining payable.
Pre-registratio n interest	65. For the purpose of section 64, a foreign judgment includes any interest, up to the day of registration, that has accrued on it under the law of the state in which it was rendered.
Costs	66. Reasonable costs incurred by the judgment creditor related to the registration of the foreign judgment, including the cost of obtaining an exemplification or certified copy of it from the foreign court, are recoverable in the same manner as if they were amounts payable under the foreign judgment, and the costs shall be taxed by an assessment officer of the Admiralty Court and the assessment endorsed on the order for registration.
Conversion to Canadian currency	67. (1) A foreign judgment expressed in a currency other than Canadian currency cannot be registered under section 64 until the Admiralty Court has determined the equivalent amount in Canadian currency on the basis of the rate of exchange prevailing on the day on which the foreign judgment was rendered, as ascertained from any bank in Canada, and, for the purpose of making that determination, that Court may require the judgment creditor to provide any evidence of the applicable rate of exchange that that Court considers necessary.
Registered judgment to be in Canadian currency	(2) When the equivalent amount in Canadian currency has been determined in accordance with subsection (1), the Admiralty Court shall certify on the order for registration the amount so determined, and the foreign judgment, when registered, is deemed to be a judgment for payment of the amount so certified.
Effect of registration	68. Subject to section 69, a foreign judgment registered under section 64 has, as of the date of registration, the same force and effect as a judgment of the Admiralty Court rendered on that date.
Service of notice of registration	69. If a foreign judgment is registered under section 64 after an ex parte hearing, execution of the registered judgment may not issue until the expiry of 30 days after the judgment debtor has been served with a notice of registration of the foreign judgment in the manner set out in the rules of the Admiralty Court for the service of originating documents.
Application to set aside registration	70. (1) At any time after a foreign judgment has been registered under section 64, the judgment debtor may apply to the Admiralty Court, in accordance with its rules, to have the registration of the judgment set aside on any of the grounds set out in subsection (2).
Grounds for setting aside registration	(2) On an application by a judgment debtor under subsection (1), the Admiralty Court shall set aside the registration of the foreign judgment if it is satisfied that
	(a) the foreign judgment had been fully or partly satisfied;
	(b) the foreign court acted without jurisdiction;
	(c) the foreign judgment was obtained by fraud;
	(d) the defendant in the foreign action was not given reasonable notice and a fair opportunity to present their case;
	(e) the registration of the foreign judgment was obtained by fraud;
	(f) an error was made in the conversion of the foreign judgment to Canadian currency under section 67;
	(g) the registered judgment included interest on the foreign judgment to which the judgment creditor was not entitled; or
	(h) for any other reason that Court erred in registering the foreign judgment.
Reduction of registered amount	(3) If the Admiralty Court sets aside the registration of a foreign judgment on the ground that it had been partly satisfied, or on a ground referred to in paragraph (2)(f) or (g), it shall order the foreign judgment to be registered in the reduced amount.
Application for stay of execution	71. (1) At any time after a foreign judgment has been registered under section 64, the judgment debtor may apply to the Admiralty Court, in accordance with its rules, to have the execution of the registered judgment stayed on the grounds that an application to set aside the registration has been made under subsection 70(1), and, if that Court is satisfied that the application has been made, it may stay the execution of the judgment either absolutely or for the period and on the terms and conditions that it considers appropriate, and may, on further evidence, vary or terminate a stay of execution.
Grounds exclusive	(2) Execution of a registered judgment may not be stayed except on the grounds that an application to set aside the registration has been made under subsection 70(1).
	DIVISION 2
	COMPENSATION FOR POLLUTION
	International Oil Pollution Compensation Fund
Legal capacity of International Fund	72. For the purposes of the rights and obligations described in this Part, the International Fund has the capacity, rights and obligations of a natural person, and the Director of the International Fund is its legal representative.
International Fund to be party to legal proceedings	73. If a claimant commences an action against the owner of a Convention ship or the owner's guarantor in respect of a matter referred to in subsection 51(1),
	(a) the document commencing the proceedings shall be served on the International Fund and the International Fund is then a party to the proceedings; and
	(b) the International Fund may appear and take any action that its Director considers appropriate for the proper administration of the International Fund.
Method of service on International Fund	74. In addition to any method of service permitted by the rules of the court in which a proceeding referred to in section 73 is commenced, service of documents on the International Fund under paragraph 73(a) may be effected by registered mail.
Circumstances in which International Fund is liable	75. If there is an occurrence involving a Convention ship, to the extent that a claimant has been unable to obtain full compensation under this Part from the ship's owner or the owner's guarantor, the International Fund is, subject to the provisions of the Fund Convention, liable in accordance with Article 4 of that Convention.
Contributions by Canada to International Fund	76. (1) The Administrator shall direct payments to be made out of the Ship-source Oil Pollution Fund to the International Fund in accordance with Articles 10 and 12 of the Fund Convention.
Communicati on of information	(2) The Administrator shall communicate to the Director of the International Fund the information referred to in Article 15 of the Fund Convention in accordance with that Article and is liable for any financial loss to the International Fund as a result of the failure to so communicate.
Powers of Administrator	(3) The Administrator may, for the purpose of subsection (2),
	(a) at any reasonable time, enter any premises where the Administrator believes on reasonable grounds that there are any records, books, accounts, vouchers or other documents relating to information referred to in Article 15 of the Fund Convention;
	(b) examine anything on the premises and copy or take away for further examination or copying any record, book, account, voucher or other document that the Administrator believes, on reasonable grounds, contains any such information; and
	(c) require the owner, occupier or person in charge of the premises to give all reasonable assistance in connection with the examination and to answer all proper questions relating to the examination and, for that purpose, require the owner, occupier or person in charge to attend at the premises with the Administrator.

No obstruction or false statements	(4) No person shall obstruct or hinder the Administrator in the exercise of any powers under subsection (3) or knowingly make a false or misleading statement, either orally or in writing, to the Administrator while the Administrator is exercising those powers.
Warrant required to enter living quarters	(5) Living quarters may not be entered under subsection (3) unless they are entered with the consent of the occupant or under the authority of a warrant issued under subsection (6).
Authority to issue warrant	(6) On ex parte application, a justice, within the meaning of section 2 of the Criminal Code, may issue a warrant authorizing the Administrator to enter living quarters, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that entry to the living quarters
	(a) is necessary for the purposes of subsection (2); and
	(b) has been refused or there are reasonable grounds to believe that it will be refused.
Meaning of ``associated persons''	(7) If two bodies are affiliated with each other within the meaning of section 2 of the Canada Business Corporations Act, they are deemed to be ``associated persons'' for the purpose of the definition ``Associated person'' in subparagraph 2(b) of Article 10 of the Fund Convention.
	Ship-source Oil Pollution Fund
Ship-source Oil Pollution Fund	77. (1) There is hereby established in the accounts of Canada an account known as the Ship-source Oil Pollution Fund.
Credits	(2) The following shall be credited to the Ship-source Oil Pollution Fund:
	(a) all payments received under sections 93 and 99;
	(b) interest computed in accordance with section 78; and
	(c) any amounts recovered by the Administrator under paragraph 87(3)(c).
Charges	(3) The following shall be charged to the Ship-source Oil Pollution Fund:
	(a) all amounts that are directed by the Administrator to be paid under section 76, paragraph 87(3)(a), paragraph 89(1)(a), subsection 89(6) or under a settlement;
	(b) all amounts for which the Administrator is liable under subsection 76(2);
	(c) all interest paid under section 101;
	(d) all costs and expenses that are directed to be paid under section 82;
	(e) the remuneration and expenses of assessors that are directed to be paid under subsection 89(2); and
	(f) the amount of any judgment and any costs awarded against that Fund in litigation.
Interest to be credited to Fund	78. The Minister of Finance shall, at the times that the Governor in Council directs, credit to the Ship-source Oil Pollution Fund interest at a rate fixed by the Governor in Council on the balance from time to time to the credit of that Fund.
	Administrator and Deputy Administrator
Appointment of Administrator	79. (1) The Governor in Council shall appoint an Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause.
Administrator eligible for reappointment	(2) The Administrator is eligible for reappointment on the expiry of the Administrator's term of office.
Administrator to be independent of Crown	80. (1) The Administrator shall not, while holding office, accept or hold any office or employment inconsistent with the Administrator's duties under this Part.
Effect of contravention of subsection (1)	(2) If the Administrator contravenes subsection (1), the Administrator's appointment as Administrator is terminated on a date fixed by the Governor in Council that is not later than 30 days after notice of the contravention is received by the Minister, but the contravention does not affect the validity of any act performed by the Administrator on behalf of the Ship-source Oil Pollution Fund between the date of the contravention and the date that the appointment is terminated under this subsection.
Professional and technical aid	81. The Administrator may, for the purpose of performing duties under this Part, obtain the professional, technical and other advice and assistance that the Administrator considers necessary.
Costs, expenses and fees	82. (1) On the direction of the Minister of Finance, all costs and expenses incurred by the Administrator in performing duties and functions under this Part, and fees for services rendered by the Administrator calculated in accordance with a tariff prescribed by the regulations, shall be paid out of the Consolidated Revenue Fund and charged to the Ship-source Oil Pollution Fund.
Taxation	(2) Assessment officers of the Admiralty Court may, at the request of the Minister of Justice, tax any account for costs, expenses or fees submitted by the Administrator to the Minister of Finance as if the Administrator were acting for the Crown in proceedings in that Court, but, on any such taxation, no fee may be allowed in excess of that set out in the tariff referred to in subsection (1).

Bill S-2

DIVISION 2

COMPENSATION FOR POLLUTION