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Bill S-2

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	PART 3
	LIMITATION OF LIABILITY FOR MARITIME CLAIMS
	Interpretation
Definitions	24. The definitions in this section apply in this Part.
``Convention' ' « Convention »	``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.
``maritime claim'' « créance maritime »	``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.
``Protocol'' « Protocole »	``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.
Extended meaning of expressions	25. (1) For the purposes of this Part and Articles 1 to 15 of the 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
	(i) a ship in the process of construction from the time that it is capable of floating, and
	(ii) a ship that has been stranded, wrecked or sunk and any part of a ship that has broken up,
	but does not include an air cushion vehicle or a floating platform constructed for the purpose of exploring or exploiting the natural resources or the subsoil of the sea-bed;
	(b) the definition ``shipowner'' in paragraph 2 of Article 1 of the Convention shall be read without reference to the word ``seagoing'' and as including any person who has an interest in or possession of a ship from and including its launching; and
	(c) the expression ``carriage by sea'' in paragraph 1(b) of Article 2 of the Convention shall be read as ``carriage by water''.
Inconsistency	(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.
	Application
Force of law	26. Subject to the other provisions of this Part, Articles 1 to 15 of the Convention have the force of law in Canada.
State Party to the Convention	27. For purposes of the application of the Convention, Canada is a State Party to the Convention.
Liability for ships under 300 tons	28. (1) The maximum liability for maritime claims that arise on any distinct occasion involving a ship with a gross tonnage of less than 300 tons, other than claims mentioned in section 29, is
	(a) $1,000,000 in respect of claims for loss of life or personal injury; and
	(b) $500,000 in respect of any other claims.
Calculation of tonnage	(2) For the purposes of subsection (1), a ship's gross tonnage shall be calculated in accordance with the tonnage measurement rules contained in Annex I of the International Convention on Tonnage Measurement of Ships, 1969, concluded at London on June 23, 1969, including any amendments, whenever made, to the Annexes or Appendix to that Convention.
Passenger claims, no certificate	29. (1) The maximum liability for maritime claims that arise on any distinct occasion for loss of life or personal injury to passengers of a ship for which no certificate is required under Part V of the Canada Shipping Act is the greater of
	(a) 2,000,000 units of account; and
	(b) the number of units of account calculated by multiplying 175,000 units of account by the number of passengers on board the ship.
Passenger claims, no contract of carriage	(2) Notwithstanding Article 6 of the Convention, the maximum liability for maritime claims that arise on any distinct occasion for loss of life or personal injury to persons carried on a ship otherwise than under a contract of passenger carriage is the greater of
	(a) 2,000,000 units of account, and
	(b) 175,000 units of account multiplied by
	(i) the number of passengers that the ship is authorized to carry according to its certificate under Part V of the Canada Shipping Act, or
	(ii) if no certificate is required under that Part, the number of persons on board the ship.
Exception	(3) Subsection (2) does not apply in respect of
	(a) the master of a ship, a member of a ship's crew or any other person employed or engaged in any capacity on board a ship on the business of a ship; or
	(b) a person carried on board a ship other than a ship operated for a commercial or public purpose.
Definition of ``passenger''	(4) In subsection (1), ``passenger'' means a person carried on a ship in circumstances described in paragraph 2(a) or (b) of Article 7 of the Convention.
Definition of ``unit of account''	(5) In subsections (1) and (2), ``unit of account'' means a special drawing right issued by the International Monetary Fund.
	Liability of Owners of Docks, Canals and Ports
Limitation of liability	30. (1) The maximum liability of an owner of a dock, canal or port, for a claim that arises on any distinct occasion for loss caused to a ship, or to any cargo or other property on board a ship, is the greater of
	(a) $2,000,000, and
	(b) the amount calculated by multiplying $1,000 by the number of tons of the gross tonnage of the largest ship that is at the time of the loss, or had been within a period of five years before that time, within the area of the dock, canal or port over which the owner had control or management.
Calculation of tonnage	(2) For the purposes of subsection (1), a ship's gross tonnage shall be calculated in the manner described in subsection 28(2).
Application	(3) The maximum liability specified in subsection (1) also applies to any person for whose act or omission the owner is responsible.
Conduct barring limitation	(4) This section does not apply to an owner, or a person for whose act or omission the owner is responsible, if it is proved that the loss resulted from the personal act or omission of that owner or that person, as the case may be, committed with intent to cause the loss or recklessly and with knowledge that the loss would probably result.
Meaning of terms	(5) For the purposes of this section,
	(a) ``dock'' includes wet docks and basins, tidal-docks and basins, locks, cuts, entrances, dry docks, graving docks, gridirons, slips, quays, wharfs, piers, stages, landing places, jetties and synchrolifts; and
	(b) ``owner of a dock, canal or port'' includes any person or authority having the control or management of the dock, canal or port and any ship repairer using the dock, canal or port.
	Amendment of Maximum Liability
Amendment of limits	31. (1) The Governor in Council may, by order, declare that an amendment made in accordance with Article 8 of the Protocol to any of the limits of liability specified in paragraph 1 of Article 6 or paragraph 1 of Article 7 of the Convention has the force of law in Canada.
Amendment of sections 28, 29 and 30	(2) The Governor in Council may, by order, amend the limits of liability set out in sections 28, 29 and 30.
	Procedure
Jurisdiction of Admiralty Court	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.
Right to assert limitation defence	(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.
Powers of Admiralty Court	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
	(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;
	(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
	(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.
Court may postpone distribution	(2) In providing for the distribution of a fund under paragraph (1)(a) in relation to any liability, the Admiralty Court may, having regard to any claim that may subsequently be established before a court, tribunal or other authority outside Canada in respect of that liability, postpone the distribution of any part of the fund that it considers appropriate.
Lien and other rights	(3) No lien or other right in respect of a ship or other property affects the proportions in which a fund is distributed by the Admiralty Court.
Procedural matters	(4) The Admiralty Court may
	(a) make any rule of procedure it considers appropriate with respect to proceedings before it under this section; and
	(b) determine what form of guarantee it considers to be adequate for the purposes of paragraph 2 of Article 11 of the Convention.
Interest	(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.
Release of ships, etc.	34. (1) Where a ship or other property is released under paragraph 2 of Article 13 of the Convention, in any case other than one in which a fund has been constituted in a place described in paragraphs (a) to (d) of that Article, the person who applied for the release is deemed to have submitted to the jurisdiction of the court that ordered the release for the purpose of determining the claim.
Limitation fund in state other than Canada	(2) In considering whether to release a ship or other property referred to in subsection (1), the court shall not have regard to a limitation fund constituted in a country other than Canada unless the court is satisfied that the country is a State Party to the Convention.
	PART 4
	LIABILITY FOR CARRIAGE OF PASSENGERS BY WATER
	Interpretation
Definitions	35. The definitions in this section apply in this Part.
``Convention' ' « Convention »	``Convention'' means the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 1974, concluded at Athens on December 13, 1974, as amended by the Protocol, Articles 1 to 22 of which Convention are set out in Part 1 of Schedule 2.
``Protocol'' « Protocole »	``Protocol'' means the Protocol of 1990 to amend the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 1974, concluded at London on March 29, 1990, Articles III and VIII of which are set out in Part 2 of Schedule 2.
Extended meaning of expressions	36. (1) For the purposes of this Part and Articles 1 to 22 of the Convention,
	(a) the definition ``ship'' in Article 1 of the Convention shall be read as including 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 whether seagoing or not, but not including an air cushion vehicle; and
	(b) in the definition ``contract of carriage'' in Article 1 of the Convention, the expression ``carriage by sea'' shall be read as ``carriage by water''.
Owners of ships	(2) For greater certainty, in the application of the Convention under this Part, Article 19 of the Convention applies to owners of all ships, whether seagoing or not.