Marine Liability Act (S.C. 2001, c. 6)

Marginal note:Payment of proceeds

• 138 (1) If a ship is sold under an order, the proceeds of the sale shall be applied to satisfy claims in the following order of priority:

  • (a) the expenses incurred in respect of the detained ship and its sale;

  • (b) the claims of the master and crew members for wages;

  • (c) the amount of any fine imposed;

  • (d) the interests of persons who have been recognized and ranked by the court under paragraph 136(2)(b).

• Marginal note:Surplus

  (2) Any surplus of the proceeds of sale remaining after all claims have been satisfied is to be paid to the person registered as the owner of the ship or, in the absence of any registration, to the person who owns the ship.

• Marginal note:Proceedings against owner

  (3) If the proceeds of sale of a ship are insufficient to satisfy the claims described in paragraphs (1)(a) and (c), the Minister may proceed against the owner of the ship for the balance owing.

• Marginal note:Clear title

  (4) On selling a ship under an order, the Minister may, by bill of sale, give the purchaser a valid title to the ship free from any mortgage or other claim that is in existence at the time of the sale.

Maritime Lien

Definition of foreign vessel

• 139 (1) In this section, foreign vessel has the same meaning as in section 2 of the Canada Shipping Act, 2001.

• Marginal note:Maritime lien

  (2) A person, carrying on business in Canada, has a maritime lien against a foreign vessel for claims that arise

  • (a) in respect of goods, materials or services wherever supplied to the foreign vessel for its operation or maintenance, including, without restricting the generality of the foregoing, stevedoring and lighterage; or

  • (b) out of a contract relating to the repair or equipping of the foreign vessel.

• Marginal note:Services requested by owner

  (2.1) Subject to section 251 of the Canada Shipping Act, 2001, for the purposes of paragraph (2)(a), with respect to stevedoring or lighterage, the services must have been provided at the request of the owner of the foreign vessel or a person acting on the owner’s behalf.

• Marginal note:Exception

  (3) A maritime lien against a foreign vessel may be enforced by an action in rem against a foreign vessel unless

  • (a) the vessel is a warship, coast guard ship or police vessel; or

  • (b) at the time the claim arises or the action is commenced, the vessel is being used exclusively for non-commercial governmental purposes.

• Marginal note:Federal Courts Act

  (4) Subsection 43(3) of the Federal Courts Act does not apply to a claim secured by a maritime lien under this section.

Limitation Period

Marginal note:Proceedings under maritime law

140 Except as otherwise provided in this Act or in any other Act of Parliament, no proceedings under Canadian maritime law in relation to any matter coming within the class of navigation and shipping may be commenced later than three years after the day on which the cause of action arises.

Inconsistency

Marginal note:Priority over Arctic Waters Pollution Prevention Act

141 In the event of an inconsistency between this Act and the provisions of the Arctic Waters Pollution Prevention Act, the provisions of this Act prevail to the extent of the inconsistency.

Coming Into Force

Marginal note:Order in council

Footnote ^*142 Section 45 comes into force on a day to be fixed by order of the Governor in Council.

• Return to footnote ^*[Note: Section 45 repealed before coming into force, see 2008, c. 20, s. 3.]