Tag: marine law

  • Court’s Reasons for Queen of the North Officer’s Sentence

    Court’s Reasons for Queen of the North Officer’s Sentence

    Although the B.C. Supreme Court sentenced the Fourth Officer (“FO”) of the Queen of the North on June 24, 2013, the reasons for this sentence were not available in writing until late July.  Needing no editorial, the most significant portions of the Court’s reasons are captured by the excerpts below.  While this tragedy has, in my view, received more than sufficient attention already, it is helpful to mariners to review this final chapter and understand the rationale of Courts when sentencing mariners.

    “[The FO] was found guilty by a jury of two counts of criminal negligence causing the deaths of Gerald Foisy and Shirley Rosette, contrary to s. 220(b) of the Criminal Code.  The offences arise from the sinking of the Queen of the North, a passenger ferry operated by BC Ferries.  At 8:00 p.m. on March 21, 2006, the Queen of the North departed Prince Rupert for Port Hardy with 42 crew members, 59 passengers, and 16 vehicles.  Fortuitously, this was a very light load for this passenger ferry.  At about midnight, [the FO] assumed conduct of the ferry.  He was alone on the bridge with [the Quartermaster] (“QM”), his former lover.  This was the first time they had worked together since their recent breakup.

    At about 12:07 a.m., now on March 22, 2006, the ferry exited Grenville Channel into Wright Sound, failing to make a necessary course change at or near Sainty Point.  The Queen of the North traversed Wright Sound in a straight line, off course, until it struck Gil Island at approximately 12:21 a.m.  The ferry sank in 430 meters of water about an hour later.  Of the 101 passengers and crew, 99 successfully abandoned ship and were rescued by brave members of the Hartley Bay community, crew of the Lone Star, and Coast Guard personnel aboard the Sir Wilfred Laurier.  Tragically, passengers Gerald Foisy and Shirley Rosette died as a result of the sinking of the ferry.

    In arriving at its verdict, it is clear the jury rejected [the FO’s] evidence that he was carrying out his duties to the best of his ability.  It is clear the jury rejected [the FO’s] explanation that he was fully engaged in navigating the vessel, trying to go around a fishing boat; that he hit a squall; and the radar screen had whited out.  The jury accepted he had all the standard aids of navigation, and there was no failure of any of the navigation equipment that caused the ferry to hit the island.

    In arriving at its verdict, it is clear the jury found that there was an extended period of time where [the FO] did not follow any of the steps, procedures, or policies of a professional mariner.  The jury clearly found that [the FO] failed to navigate the vessel in any meaningful way and failed to pay attention to the navigation of the vessel.  In doing so, it is clear the jury found he grossly neglected his duty, ignored or failed to implement standard policy and procedures, and operated a ferry vessel with 101 passengers, including crew, with a wanton and reckless disregard for the lives and safety of his passengers.  In doing so, it is clear the jury found Mr. Foisy and Ms. Rosette perished as a result or [the FO’s] action or inaction.

    The ECS evidence indicated that for a 12-minute period, the ship had left the navigation corridor.  Given the proximity of the vessel to land, 12 to 14 minutes is an extraordinary amount of time to hurtle blindly through the night at a full cruising speed without ensuring the vessel was on course and taking action to safely navigate the vessel in that area.  This is an area that is tricky to navigate in at the best of times.  Even assuming a squall lasting from five to 30 minutes, with heavy winds and heavy rain, the ECS was available and would not be affected by those conditions; nor would a properly adjusted radar.  The navigational aids, had they been used, or used properly, would have shown that the vessel was off course and headed for Gil Island.

    Maintaining situational awareness at all times and in all circumstances is key to proper navigation.  The evidence of the expert, Mr. Flotre, was [the FO] failed to comply with the collision regulations by not standing watch using his eyes, ears, the ECS, and radar.  If he was experiencing heavy weather or restricted visibility, he failed to slow down; or stop; or call the second officer; or call the Master as dictated by the Master’s Standing Orders, standard practice, and the regulations; or call the standby deckhand; and he took no steps to avoid the collision by attempting to communicate with vessel traffic or other vessels; or notify the engine room to go on standby; and go on hand steering.  There was a complete abandonment of “the rules of the road” by [the FO].  The only conclusion to be drawn from his inattention and inaction is that he demonstrated extreme and catastrophic dereliction of his duty.

    In considering the nature and circumstances of the offences at bar, having regard to the manner in which the deaths were caused, the degree of harm is severe.  [The FO’s] conduct led to the deaths of two innocent passengers.  He engaged in conduct that created a grave risk to and, in fact, doomed the vessel, and passengers Mr. Foisy and Ms. Rosette with it, to a watery grave, putting the remaining passengers and crew at extreme risk.  Being overwhelmed with personal matters, he failed to navigate the vessel.  His was not a split-second error in judgment or an inadvertent lapse of care.  This is not a case closer to accident than an intentional act.  [The FO] was a paid professional mariner engaged in the conduct of a passenger ferry and failed to navigate it, with predictable and devastating consequences.

    BC Ferries has changed many things since the sinking, including requiring three officers on the bridge at all times.  These changes will likely avoid a similar scenario in the future as there will never be a situation where two lovers, or former lovers, will be alone on the bridge of a passenger ferry.  The changes have nothing to do with the fact [the FO] abdicated his duty to safely navigate the vessel.  This is not simply a case of exercising bad judgment, or mere recklessness, or momentary inattentiveness.  He did nothing he was supposed to do in the circumstances.

    Criminal negligence causing death has a maximum penalty of life imprisonment.

    The position of the Crown is that the appropriate sentence is six years imprisonment.  The Crown points out there are no criminal negligence sentencing precedents where 100 people put their trust in a professional mariner and as a result of his wanton or reckless disregard for their lives, two people died.  The Crown submits [the FO’s] moral blameworthiness is at the high end given the intentional risk taken, the degree of harm, and the extent his conduct deviated from acceptable standards. The position of the defence is that an appropriate sentence is a conditional sentence of two years less one day to be served in the community.

    The sentencing provisions are set out at s. 718 and following of the Criminal Code.  The fundamental purpose of sentencing is to contribute to respect for the law and maintenance of a just, peaceful, and safe society.  This is achieved by imposing sentences which have the following objectives:  denouncing unlawful conduct; general and specific deterrence; separating offenders from society where necessary; rehabilitation; providing reparations for the harm done to victims and the community; and promoting a sense of responsibility in offenders.

    In summary, [the FO] had been involved in a personal relationship with [the QM].  At the critical time, he had sole responsibility for navigating the vessel and for the lives and safety of the passengers and crew.  He was a highly qualified and experienced professional mariner who was entrusted to navigate a large commercial ferry in coastal waters.  He was paid to transport ferry passengers safely to their destination.  He had thousands of hours of training and experience.  He was familiar with the area of Wright Sound and Gil Island.  He was familiar with the operation of and the navigational equipment on the Queen of the North.  He was completely capable and qualified to navigate the vessel in any of the circumstances he faced, or says he faced, that fateful night.

    I agree with the Crown that this is not a case of an honest but mistaken belief; of someone trying their best but failing; or a lapse of attention.  This was not an error in a judgment call.  This was a case of complete abdication of responsibility by [the FO].  Shortly after joining [the QM] on the bridge, he completely failed to take any steps to navigate the vessel.  He ignored his responsibility to safely navigate a passenger ferry travelling at night at full cruising speed in waters with land nearby, knowing full well the risks and the possible, in this instance the inevitable, disastrous consequences.  Whatever occupied [the FO’s] attention on the bridge that night, it was not the navigation of the vessel.  I do not need to speculate what [the FO] was doing on the bridge that night.  I know what he was not doing.  He was not doing his job.  He was not navigating a passenger ferry with 101 persons aboard who had entrusted their lives and safety to him.

    Although there is nothing mitigating in the circumstances of the offences, [the FO] comes before this court with no criminal record or driving record and support from family, friends, and community.  He has expressed remorse but has demonstrated a lack of insight in terms of his responsibility in the circumstances.  He minimized his responsibility and attempted to deflect blame to others, including [the QM], suggesting it was her poor training; poor equipment; practices, policy, and procedures of BC Ferries; the weather; and other vessels that were the cause of the crash.  The fact [the FO] testified and lied, or minimized his responsibility, cannot be considered an aggravating factor.

    Sentencing is an individualized process that takes into account the totality of circumstances, including the nature of the offences and the role of the offender in the offences.  Having regard to [the FO’s] high degree of moral blameworthiness, the focus is on deterrence and denunciation.  Considering all the factors, including the aggravating and mitigating factors in this case, I conclude that the appropriate sentence is four years on each count concurrent. [FO], I sentence you to four years.  For 10 years, I prohibit you from operating a vessel pursuant to s. 259(2) of the Criminal Code.”

    Darren Williams is a founding partner of League and Williams where he operates the largest marine law practice on Vancouver Island and also practices personal injury law and estate disputes.  Darren can be reached at dwilliams@leaguelaw.com or by phone at 250-888-0002.

  • The LaW Team: Personal Injury, Estate, and Marine Law experts in Victoria, BC

    The LaW Team: Personal Injury, Estate, and Marine Law experts in Victoria, BC

    Established in August 2014, Victoria, BC based League and Williams (LaW) provides experienced, effective legal services in the areas of personal injury, marine law and estate litigation across British Columbia. LaW’s legal team of lawyers, and legal assistants led by principal Darren Williams has extensive litigation experience and delivers legal services with compassion and understanding.  The cornerstone philosophy of League and Williams is that clients should be enabled to have the best recovery possible and that fair and just settlements are the result of working collaboratively with the client and their care providers as a team.

    Darren Williams, lawyer & principal

    Darren Williams understands the real impact of the problems faced by his clients and arrives at the best resolution possible by providing an exceptional quality of legal services and advice.  Darren has a commitment and dedication to ensuring that his clients recover as best as possible – both physically and financially.  Darren believes that client satisfaction is the key to building and sustaining a leading personal injury firm in British Columbia.

    Aside from being a skilled personal injury lawyer, Darren also operates the largest maritime law practice on Vancouver Island and has written and published over 100 articles on maritime law issues.  Darren has been invited to speak and has presented on both maritime law and personal injury law issues at a number of conferences and events.

    Andrew Broadley, lawyer

    As a member of the LaW team, Andrew Broadley works collaboratively to ensure his clients receive a quality legal services and advice.  Andrew is committed to serving his clients’ interests, regardless of the legal challenge being faced and is dedicated to delivering results and trusted advice.

    Andrew was called to the British Columbia bar in 2016.  Prior to being called to the bar, he completed his articles under the supervision of Darren Williams, founding partner of LaW.  Previously, Andrew was a successful business owner who managed a chain of automotive service facilities before selling the business to a national chain to pursue the practice of law.

    Andrew practices collaboratively in the areas of personal injury law, and estate litigation.

    Andrew is a member of the Victoria Bar Association, the Canadian Bar Association and the Trial Lawyers of British Columbia.

    Matthew Melnyk, lawyer

    Matthew Melnyk is the newest member of the LaW team, continuing with the firm after completion of his articles under the supervision of LaW principal, Darren Williams in 2016.  Matthew is a hard working and dedicated lawyer who endeavours to work collaboratively with his clients and the rest of the LaW team to deliver the results his clients deserve.  Matthew believes working collaboratively to ensure that clients receive quality legal services and advice that they are satisfied with is key to succeeding in the practice of law.

    Matthew practices collaboratively in the areas of personal injury law, estate litigation and marine law.

    Matthew is a member of the Victoria Bar Association, the Canadian Bar Association and the Trial Lawyers of British Columbia.

    Legal Assistants and Support Staff

    In addition to the lawyers who practice at LaW are the team of legal assistants and support staff who enable our lawyers to deliver exceptional services to our clients.  Every member of the LaW team is detail-oriented and committed to our clients and their satisfaction and works to ensure that every client’s case gets the attention it deserves to get the best resolution possible.

  • Marine Superstitions: Ignore Them at Your Peril

    Marine Superstitions: Ignore Them at Your Peril

    This is an article by Darren Williams, a founding partner of League and Williams. Darren has written and published over 100 articles on maritime law in Canada. This article was originally published by Anchor Publishing in February 2004. 

    Su•per•sti•tion:     the belief that particular events happen in a way that cannot be explained by reason or science; the belief that particular events bring good or bad luck (Oxford Dictionary).

    Why opening a tin can upside down on a boat is a bad idea

    I learned at the age of 11 that opening a tin can upside down on a boat is a bad idea. When I scoffed at the explanation that it would bring bad luck, the Skipper fired me. “Wow, that really was bad luck”, I thought, in shock. When I was 15 we prepared to leave port on a Thursday evening, but we didn’t throw off our lines until 12:05am. The resulting fishing trip was a nightmarish week-long struggle with smashed gear, freezing rain and huge seas ending with the crew owing the boat for food, ice and diesel. I now know that you should never scorn the sea or your boat, and always mind your superstitions.

    Marine superstitions have been around for tens of hundreds of years. There are thousands of different superstitions that vary depending on where you are, who you are, what industry you are in, and so on. Below are a few of the superstitions held by fishermen and mariners that I have met in the last 20 years, as well as my understanding of the origins of these superstitions. Of course, there are variations on those listed below, and there are many more superstitions that we cannot mention. Readers are encouraged to provide other superstitions and explanations to the address below.

    Leaving Port on Friday

    Leaving port on a Friday is easily the most consistently applied superstition on the B.C. coast, and possibly abroad. It is thought that merchant and navy seamen developed this superstition in order to encourage the ship to stay in town for the most notorious night of the week in local watering holes.

    Calling the Ship a “Pig”

    Implying fat, slow movement, it is believed this word will insult the character of the ship, leading to disaster, break-down or generally poor performance of the vessel.  That calling the ship a “pig” would have a negative effect on her personality should be obvious. I don’t imagine there exists a single female personality that would suffer lightly being called a “pig”.

    Whistling

    Whistling brings the wind. While it may not bring bad-luck, whistling is believed to cause the wind to blow.  In some circumstances wind can be good, but in most, crew members are discouraged from whistling. It is also considered bad etiquette to whistle on someone else’s boat – as it is not your property and life alone that you endanger.

    Black Briefcases

    Implying a sinister presence on the vessel, the origin of this superstition is unclear. Some fisherman, particularly trawlers, jested of the relevance of this superstition as the evil black briefcase became the general issue of fisheries’ observers in the mid-1990s.

    Hat on the Galley Table

    This is a faux-superstition started by the cooks, masters of the galley. Really a matter of hygiene and good manners and not a real superstition at all, some crew members have been known to become mysteriously ill after insisting they place their hat on the galley table. “Strange”, says the cook.

    Hatch Upside Down

    Placing a hatch cover or manhole upside down is bad luck. There are various explanations. Upside down covers forebode of a capsized vessel. Practically speaking, all hatches and manholes should be in the sealed position while at sea in any event; to do otherwise is said to be bad practice. This superstition is known to have been modified on some vessels to prohibit buckets of water from being placed on the hatch cover – possibly symbolizing standing water over the hatch, a bad situation in any case.

    Mugs Facing Astern

    If coffee mugs are hung on the galley or wheelhouse wall, they must be facing (open side) astern.  This quirky belief is thought to originate from the same practice that was common and necessary for sailors prior to closed-hull construction of vessels.  Working and eating out in the open, your coffee cup would fill with salt water if it was not hanging astern.

    No Flowers

    The association between flowers and funerals is most likely what makes having flowers on a boat to be unlucky.

    Opening Cans Upside Down

    Any can opened upside down must be thrown out without consuming its contents.  To do otherwise is bad luck.  The rational basis for this is that when canned food became available on vessels, around 1810, the early canning technology allowed some air into the cans. Some of these tin cans sat on vessels for so long that opening them the wrong way might expose the diner to eating corroded tin, a mild poison. Hypothetically, this superstition would require us to place all our cans in the locker upside down (so they can be opened upright with the poison side down). However, canning technology has eliminated air pockets that once used to be more common, and we no longer face this danger.

    Superstitions: A Rich Part of Our Maritime Culture

    The cultural significance of superstitions is perhaps nowhere more followed and respected than in the fishing and marine industries. The majority of marine superstitions are just that, irrational beliefs. A few marine superstitions, like that a ship should never sail on a Friday, are the result of centuries of pressure by seaman. Yet others, like never turning a hatch cover upside down, are the result of common sense and good seamanship. If you do not believe in superstitions, respect them for their contribution to the richness that is our maritime culture, and never, ever, open a can upside down.

    Darren Williams is a marine lawyer with League and Williams in Victoria BC.

  • The Tide is Turning Against Trespassing and Derelict Vessels

    The Tide is Turning Against Trespassing and Derelict Vessels

    The expression “a man may not use the highway to stable his horse” reflects the rule of law that the public right of navigation, that we all enjoy, does not include a right of an individual to anchor or moor beyond what is reasonably necessary for the active navigation of their vessel.  This is frequently misunderstood.

    Many vessel owners, particularly those that cannot locate or afford regular moorage, argue the right of navigation also includes a right to anchor or moor wherever, and for however long, they please.  Historical confusion about local, provincial and the federal governments’ rights and responsibilities regarding vessels has stalled efforts to remove hundreds of vessels across the provinces that fall just short of being true navigational hazards, but are otherwise environmental threats and public irritants.   Fortunately, several recent court decisions have provided clarity in this area of marine law.

    Before describing these cases, however, it is useful to note several definitions.  The word “derelict” has become commonly used by the media to describe any vessel left where it is not wanted.  In fact, the judicial definition of “derelict” is property, whether vessel or cargo, abandoned by those in charge of it without hope on their part of recovering or intention of returning to it.  Likewise, the judicial definition of “abandoned” is the voluntary relinquishment by its owner with the intention of terminating ownership, possession and control without vesting ownership in another party.  Given these definitions, many vessels that are left anchored, moored or beached for long periods of time are not necessarily true derelict vessels, or in fact abandoned, because their owners may either intend on returning to them or otherwise do not intend on terminating their ownership.

    While obvious to most readers, the definitions of anchoring and mooring are sometimes confused by non-mariners. Anchoring, of course, is the temporary manner of securing a vessel using tackle that is intended to be hauled aboard the vessel, while mooring is a more permanent method of securing a vessel using ground tackle which is not intended to be, and cannot conveniently be, brought aboard the vessel (i.e. it is left behind) (Harris, D. – Law of Mooring, 2005).  The reason these definitions become important is that anchoring is often referred to as mooring, and vice versa, but unlike anchoring, the owner of a vessel who leaves their mooring behind (such as a concrete block and float) may be trespassing even though their vessel is nowhere to be seen.

    In the August 2010 issue of Legal Net, we reviewed the B.C. Provincial Court case of Regina v. Lewis (2009) in which Mr. Lewis was charged with an offence under the federal Boating Restriction Regulations which prohibited the mooring of vessels in False Creek without a permit.  Mr. Lewis challenged the constitutional validity of the regulation, saying it regulated a matter of property (his vessel and use of the seabed), which was within provincial jurisdiction.  The court held the regulation was constitutional, and had the following to say about the right to anchor:

    There is a common law right to navigation which includes the incidental right to anchor. This is not a right to anchor or moor permanently but it must be exercised reasonably as determined by the circumstances at the time of anchoring such as the weather, loading or unloading of the vessel, or the need for repairs to the vessel. The right to anchor therefore contemplates the right to do so for a reasonable time, for a reasonable purpose. Both the right to navigation and the right to anchor must not be exercised so as to interfere with the equal rights of others….The rights apply in navigable waters that have been defined as any body of water capable, in its natural state, of being navigated by floating vessels of any description.

    Along with anchoring to wait out weather, to load or unload, and to service the vessel, anchoring to allow the crew to rest is undoubtedly part of the reasonable and safe navigation of the vessel, although no particular case appears to state this obvious point despite it being one of the most common reasons to anchor.

    In West Kelowna v. Newcombe (2013), the B.C. Supreme Court considered whether the City of Kelowna could regulate anchoring and moorage on portions of Okanagan Lake.  Although the decision related to a lake, it is applicable to all navigable waters.  The City of Kelowna, which had been granted a licence of occupation by the Province to parts of the lakebed, enacted a zoning bylaw that limited anchoring and mooring of vessels to temporary use accessory to the use of immediate upland property (i.e. you could only anchor if you anchored temporarily in front of land you owned).  Mr. Newcombe had moored his houseboat within a restricted area for approximately 22 months, except when he was making seasonal recreational use of it around the lake. The City of Kelowna applied for an injunction restraining Mr. Newcombe from mooring (and anchoring) any vessel within the restricted area.

    Among other arguments, Mr. Newcombe challenged the constitutionality of the City’s zoning bylaw.  He argued the Federal Government has exclusive jurisdiction over navigation and shipping, and a local government bylaw could not restrict mooring of vessels because it was a matter of navigation that was purely for the Federal Government to regulate.  The City argued it had constitutional authority to regulate land use, including land covered by water, and that by prohibiting anchoring and mooring it was simply regulating its land – the fact that this affected vessels was incidental.  The Court noted the bylaw did not single out any particular type of vessel or characteristics of vessels.  The Court found the bylaw was valid (within the City’s right to regulate), but to the extent it interfered with the common law right to navigate, it was not applicable.  The court stated the following about the limits to the right to moor (including anchor):

    It is clear… that some anchorage and/or moorage is core to navigation and shipping. For recreational navigation, such as the type engaged in by the defendant in July and August 2011, overnight moorage, emergency anchoring or mooring, anchoring or mooring for repairs, or anchoring or mooring for the purpose of provisioning his houseboat, may well be vital to his rights of navigation. On the other hand, long-term moorage of the type the defendant utilizes at times when he is not actually on board his houseboat… which in my view amounts to him “using the highway to stable his horse”, is not a core of the public right of navigation.

    On its face, the [zoning bylaw] makes impermissible any kind of moorage unless it is accessory to the immediately abutting upland parcel. The Bylaw goes much further than prohibiting non-temporary, long-term or permanent moorage. By prohibiting, on its face… even temporary moorage incidental to the actual use of a recreational boat, the District has trenched on the federal power over matters of navigation and shipping…

    What these and other recent cases demonstrate is that the right to anchor or moor has limits, and it is not the Federal Government alone that can take action to limit how and when vessels anchor and moor.  Based on how the law is evolving, it is my prediction local and provincial governments will become more active enforcing where and for how long vessels may be anchored and moored.

    Darren Williams is a marine lawyer with League and Williams in Victoria and can be reached for question or comment at dwilliams@leaguelaw.com or by phone at 250-888-0002.

  • League and Williams Makes Westside Village, Victoria, BC Home

    League and Williams Makes Westside Village, Victoria, BC Home

    League and Williams opened its doors in its Westside Village location in August 2014.  With expertise in personal injury law, estates disputes and marine law, the lawyers and staff of League and Williams are proud to call suite 210, 174 Wilson Street home.  Located in the Westside Village Shopping Centre, our office space was chosen with both our clients and our staff in mind – there is ample parking, a grocery store, medical offices, a bank, the Galloping Goose trail, a fitness facility, cafes and restaurants all nearby and the office is a short distance from Downtown Victoria.

    Our offices are equipped with cutting edge technology that enables us to serve our clients across British Columbia better – our electronic file system enables us to manage your file efficiently and effectively and improves access to information when and where it is needed.  The electronic file system also enables us to minimize our carbon footprint, enabling more environmentally friendly legal services.  An added benefit of our electronic system is that we are able to keep our clients up-to-date on the progress of their file at all times.  Further, our video conferencing facilities enable us to serve our clients across British Columbia and makes us a leader in tele-legal services.

    At LaW we value our clients and are proud of the legal services we provide in the areas of personal injury law, estate law, and marine law.  Feel free to browse the rest of our site for more details about who we are, and how we practice.  Check out our lawyers’ profiles.  If you have a personal injury, estate law or marine law problem – feel free to contact us by email at  info@leaguelaw.com, by phone at (250) 888-0002, or drop into our Westside Village Offices.  We offer free consultations and are here to help you – in many cases we do not get paid until you do.  If you are already represented, but unsure of your situation, we will gladly give you a second opinion regarding your rights.

  • Peracomo v. Telus: Stupid Act Voids Insurance, Liability is Limited

    Peracomo v. Telus: Stupid Act Voids Insurance, Liability is Limited

    Canada’s top court, the Supreme Court of Canada, recently decided the case of Peracomo v. Telus Communications Co., which is an interesting example of how a mariner, depending on the nature of their conduct, might lose the right to limit their liability for actions causing property damage, or lose the protection of their own insurance, or even both.  The Peracomo case is nicely summarized by the Supreme Court of Canada’s statement:

    While in his boat, [the fisherman] took an electric saw and cut a fibre-optic submarine cable that he raised to the surface after it had become entangled with his fishing gear.  [He] knew he was cutting a cable and had [considered] the risk that it could be in use. However, he formed the belief that it was not. His belief was based on a handwritten note on some sort of map that he had seen for a few seconds the year before on a museum wall. This belief was wrong. The cable was live.  The result was almost $1 million in damage. As the trial judge put it, [he] is a good man who did a very stupid thing.

    The Peracomo trial decision (which was upheld on appeal) found the mariner was unable to limit his liability because he intentionally caused damage to property when he cut the cable.  The courts also found that because his conduct was wilful, his insurance did not have to respond to defend him from the lawsuit brought by the owner of the cable.

    This was the first Canadian case where a mariner’s limitation of liability had been broken.  As described in the October 2012 issue of Legal Net, the Marine Liability Act gives the force of law in Canada to various international conventions, including the International Convention on the Limitation of Liability for Maritime Claims 1976 (the “Liability Convention”). The Liability Convention is important because it puts a cap, or limit, on what can be claimed for a marine loss, such as: damage to property, or injury or death of a person. People entitled to limit liability under the Liability Convention are vessel owners, charterers, managers and operators (masters), and any person with an interest in the ship, as well the ship itself. The limitation covers accidents involving not just seagoing commercial vessels, but inland and recreational vessels as well.

    In the case of damage to property, the limit of liability under the Liability Convention and the Marine Liability Act is $500,000 for loss caused by a vessel under 300 gross tonnes. For vessels over 300 tonnes, the limit increases according to their tonnage. In Peracomo, where the vessel was a 44 gross tonne fishing vessel and the master should have been able to limit his liability to $500,000, the trial judge had found the master had intentionally cut the fibre optic cable, and as a result was not entitled to limit his liability.

    Faced with a million dollar debt, the fisherman appealed to the Supreme Court of Canada, which stated:

    Both the limitation of liability and the insurance issues turn on [the fisherman’s] degree of fault. He is not entitled to the limited liability if the loss resulted from his act “committed with the intent to cause such loss, or recklessly and with knowledge that such loss would probably result”; furthermore, the loss is excluded from his insurance coverage if it is attributable to his “wilful misconduct”.

    The Supreme Court disagreed with the Federal Court trial judge, and Federal Court of Appeal, and found that, for the purposes of limiting his liability, “such loss” did not refer to the property damage itself, but rather what loss flowed from the property damage.  The court found the fisherman surely knew his action would sever the cable, but did not appreciate that such action would cause loss (the cost to repair the cable) because he believed the cable was abandoned and hence not to be repaired.  The Court said:

     It is insufficient to break the limit on liability under [the Convention] that [the fisherman] intended to cut the cable.  Rather, in order to break that limit, it must be proven that he intended to cause the loss that actually resulted or that he acted recklessly and with knowledge that the loss would probably occur.  The trial judge found that [the fisherman] thought the cable was useless.  In cutting the cable, he did not intend to cause the loss incurred by the respondents or know that it was a probable consequence of his actions.  It was therefore an error of law for the lower courts to conclude that [the fisherman] intended to cause a loss, or was reckless knowing that such loss would probably occur, within the meaning of art. 4 of the Convention.

    In finding the fisherman did not lose his right to limit his liability, the court justified the higher burden of proving the fisherman needed to intend the loss that actually occurred (the cost to repair the cable):

    The contracting states to the Convention intended the fault requirement to be a high one — the limitation on liability was designed to be difficult to break. In my respectful view, the Federal Court of Appeal’s approach to breaking the limit on liability lowered the intended fault element and thereby undermined the Convention’s purpose to establish a virtually unbreakable right to limit liability. I conclude that the appellants did not intentionally or recklessly cause the loss in question within the meaning of art. 4 of the Convention. They are therefore entitled to its limitation on liability.

    While this was good news for the fisherman, the Supreme Court went on to consider whether he was entitled to the benefit of his vessel’s liability insurance, which ordinarily would pay the costs to defend him and any award of damages against him.  The Court summarized their decision as follows:

    Although [the fisherman’s] conduct does not meet the very high level of fault so that he loses the benefit of the Convention’s limit on liability, it does constitute wilful misconduct for insurance purposes.  [The fisherman] had a duty to be aware of the cable and he failed miserably in that regard.  His acts were so far outside the range of conduct to be expected of him in the circumstances as to constitute misconduct.  The trial judge’s findings make clear that his misconduct was willful.  For insurance purposes, the fact that [the fisherman] believed that the cable was not in use is beside the point.  [The fisherman] knew that what he was cutting was a submarine cable.  He adverted to the risk that it could be in use but failed to make further inquiries in order to confirm or dispel his belief that the cable was abandoned and useless.  His conduct exhibited a reckless indifference to the possible consequences of his actions of which he was actually aware.  He thus committed an act of wilful misconduct: he ran an unreasonable risk with subjective knowledge of that risk and indifference as to the consequences.

    The lesson for mariners in this case is that, while you may retain the benefit of a limitation of your liability under Canadian maritime law where you do not appreciate the full extent of damage that your actions may cause, if you are not careful in making inquiries as to what damage might occur, or if you show indifference to the consequences, you may lose the protection of your insurance.

    Darren Williams is a marine lawyer with League and Williams (“LaW”) in Victoria and can be reached for question or comment at dwilliams@leaguelaw.com or by phone at 250-888-0002.  His toll-free number can be reached at 1-866-765-7777.