MARITIME LAW |
Contracts |
Canadian Salt Co. v. Irving Cedar (The)
T-689-95
O'Keefe J.
6/9/00
19 pp.
Action in rem, in personam, by plaintiffs against defendants for damages sustained to dock, dockside equipment when dock struck by ship Irving Cedar while breaking ice for plaintiff, Canadian Salt Co.--Latter owned, operated Mines Seleine in Îles-de-la-Madeleine, Quebec--Defendant in rem ship named Irving Cedar owned by Atlantic Towing Ltd.--On April 2, 1993, plaintiffs retained services of Atlantic Towing Ltd. to carry out ice breaking in channel, area of plaintiff's wharf, basin, to assist motor vessel Sauniere in docking at wharf--Accident occurred on April 7, 1993 when tug struck wharf--Contract between defendants and Canadian Salt concluded by latter's acceptance on April 2, 1993--Towcon contract applicable, part of contract between parties--Clause 18(2)(a) of contract exclusion of liability clause, must be interpreted against persons who have made it part of contract, in this case, defendants--Not relieving defendants from liability to pay damages to plaintiffs if found to be negligent--Plaintiffs' damages not caused as result of tug being damaged--Plaintiffs' action barred by clause 24 of Towcon contract--Action arose on April 7, 1993, suit not brought until 1995--Clearly outside time period for bringing suit, thus one of conditions of clause 18 not complied with--Clause 24 applies so as to bar plaintiffs' claim--Breaches of Collision Regulations amounting to negligence, which negligence resulted in damage to plaintiff, Canadian Salt's wharf--Accident not inevitable as tug could have avoided striking wharf had it been proceeding away from wharf as it encountered ice pan or had it engaged ice pan at distance further away from wharf than it would take tug to be full astern, not making headway--Fundamental principle of GST legislation no GST should be added into cost of inputs used by registrants in commercial activities--Claim for GST in amount of $10,620.70 disallowed--Claim for QST in amount of $6,493.81 also disallowed--Plaintiffs' claim dismissed--Collision Regulations, C.R.C., c. 1416.