No. H046/06For release June 9, 2006
OTTAWA — The Supreme Court of Canada has upheld the previous decision of the
Federal Court of Canada that reaffirms Transport Canada's authority to board and
inspect foreign vessels operating in Canadian waters. The court dismissed, with
costs, the application made by the owners of the foreign vessel M.V. Lantau Peak
to appeal the earlier decision of the Federal Court of Appeal.
Lawrence Cannon, Minister of Transport, Infrastructure and Communities, reacted
to this decision, stating, "I am very pleased with this very important decision,
as Transport Canada is committed to taking enforcement action against shipowners
in Canadian waters who do not comply with our safety and environmental
requirements, no matter where the vessels come from.
"This court decision demonstrates my department's important mandate and legal
authority to protect our waters and the safety of mariners from shipowners who
fail to comply with our laws and regulations."
This May 25, 2006 decision by the Supreme Court brings the M.V. Lantau Peak case
to an end by:
reaffirming the authority of Transport Canada inspectors to inspect and detain
ships under the Canada Shipping Act;
respecting the decisions of Transport Canada inspectors, and affirming that
they are entitled to be cautious so as to maintain the safe operation of marine
vessels in Canada's waters; and
confirming the earlier decision of the Federal Court of Appeal.
In April 1997, Transport Canada's inspectors in Vancouver boarded the M.V.
Lantau Peak, a bulk carrier built in Japan in 1977 and registered in Malaysia,
to perform an inspection under Port State Control. The inspectors found a number
of deficiencies, four of which were structural in nature and warranted detention
under the Canada Shipping Act. Transport Canada's inspectors met representatives
of the M.V Lantau Peak and explained to them what repairs were required in order
for the detention to be lifted. The owners agreed to complete the main repairs
in Vancouver, with permission to undertake the remaining repairs in Shanghai.
In 1999, the owners of the M.V. Lantau Peak filed a claim against the Government
of Canada. On April 5, 2004, the Federal Court of Canada ruled in favour of the
shipowners and ordered the Government of Canada to pay approximately $4.4 million in damages and $1.6 million in interest.
On May 3, 2004, the Government of Canada appealed this decision. On August 4, 2005, the Federal Court of Appeal unanimously allowed the appeal, awarding legal
costs to the Government. At that time, the judges ruled that Transport Canada
Marine Safety inspectors had the legal authority to inspect and detain the ship
for safety reasons, and that in this case there was sufficient evidence to
justify the inspectors' decision to detain the ship. The judgment was delivered
on August 4, 2005 after which the ship owners were provided with 90 days ending
on October 4, 2005 to counter the appeal. On September 30, 2005, the owners of
the M.V. Lantau Peak filed an application to appeal to the Supreme Court of
Canada. This latest decision brings the case to an end, as the Supreme Court is
the highest court in Canada.
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Contacts:
Natalie Sarafian
Press Secretary
Office of the Minister of Transport,
Infrastructure and Communities, Ottawa
(613) 991-0700
Kirsten Goodnough
Communications
Transport Canada
(613) 993-0055
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.
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