[2017] 4 F.C.R. D-7
Maritime Law
Practice
Application for reference to determine whether applicant having right to require claimant to execute Release and Subrogation Agreement (RSA) as condition precedent to payment of claim — Reference proceeding between applicant, Canadian Coast Guard (CCG) on basis of test case involving claim made by CCG against Ship-source Oil Pollution Fund pursuant to Marine Liability Act, S.C. 2001, c. 6, for costs, expenses it incurred in responding to oil spill — CCG containing pollution from sinking vessel, retaining salvor to raise, dewater wreck — Making claim for costs pursuant to Act, s. 103 — Applicant investigating, assessing claim, offering settlement to CCG — CCG accepting offer, but refusing to sign RSA — Applicant advancing herein that RSA no broader than release, subrogation provisions of Act, s. 106(3)(b),(c) — CCG submitting, inter alia, that applicant not having authority to require that it execute RSA as condition precedent to payment of valid claim; language of Act, s. 106(3)(a) clear that once offer accepted by claimant, applicant having no further discretion to request or require anything from claimant; applicant cannot demand claimant to execute its RSA as condition precedent to payment — Position advanced by CCG correct in law — Rights of applicant limited to those prescribed by Act, s. 105(1) — Statutory scheme not providing for requirement of execution of release by claimant; release itself provided for in Act — Release by claimants, subrogation rights of applicant are those provided for in Act, s. 106(3)(b),(c).
Canada (Ship-Source Oil Pollution Fund) v. Canada (T-1699-16, 2017 FC 530, Zinn J., judgment dated May 30, 2017, 17 pp.)