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Slide 14 of 39
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Section 51(6) prescribes the limitation period for an action under s. 51(1). An action must be commenced within 3 years of the date on which the pollution damage occurred and within 6 years of the date of the occurrence that caused the pollution damage. If no pollution damage occurred, the action must be commenced within 6 years.
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Section 54 preserves the right of the owner to claim limitation of liability. The limitation amount begins at 3,000,000 SDRs (approximately $6,000,000) for a Convention ship as defined in the Act
(ie. a ship carrying oil) The limitation amount for other ships is the amount determined by Part 3 of the Act (which is dependent upon the tonnage of the ship).
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Sections 56 through 62 establish special rules relating to Convention ships (a seagoing ship carrying persistent hydrocarbons in bulk or that carried such cargo and has residue of the oil on board). Section 57 provides that employees, crew, pilots,
charterers, managers, operators and others cannot be personally liable unless the damage resulted from their personal act or omission done with intent to cause damage or recklessly knowing such damage would likely result. By section 58 the owner of a convention ship may not limit liability unless a fund is established in an amount equal to the limit of the owner's liability. Section 60 requires convention ships carrying more than 2,000 metric tons to have a certificate of financial responsibility issued under Article VII of the Civil Liability Convention. The guarantors of such certificates are made personally liable to claimants. Failure to have such a certificate is an offence by virtue of section 103 punishable on summary conviction to a fine of not more than $100,000.
