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Slide 13 of 39
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Section 51(1) of the Marine Liability Act creates a legal liability on the part of the ship owner for oil pollution damage, the costs of clean up of a pollution incident (both caused by oil and by other pollutants), and, if the environment is impaired from oil pollution damage, for the costs of reasonable measures of reinstatement actually undertaken or to be undertaken. It is important to note that, except for liability for clean up costs, the owner’s liability is only invoked for oil pollution.
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"Oil pollution damage" is broadly defined to mean loss or damage outside the ship caused by contamination resulting from the discharge of oil from the ship.
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Section 51(3) provides that the owner's liability is strict. It does not depend on proof of fault or negligence. Essentially, the ship owner can only avoid liability by proving the discharge was caused by: act of war, natural phenomenon, an act of third parties done with intent to cause damage, or negligence of government authorities in the maintenance of lights or other navigational aids.
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Section 51(4) preserves whatever rights the owner may have against any third parties.
