Interest And Increases: Developments In The Law On Limits Of Liability In Canada​

There have been two recent developments on the limitation of liability for vessels under 300 GT in Canada. The first is a decision of the Ontario Court of Appeal (ONCA) confirming that the limit of liability is exclusive of interest and costs. The second is an amendment to the Marine Liability Act that increases the limits of liability for small vessels.

Canada gives force of law to the Civil Liability Convention¹ and its 1996 Protocol under the Marine Liability Act. However, the Civil Liability Convention does not apply to vessels under 300 GT, and limits of liability for these vessels are set out in s. 29 of the Marine Liability Act. In the recent Algra v Comrie Estate, 2023 ONCA 811 decision, the ONCA confirmed the near unbreakable nature of the limit of liability under the Civil Liability Convention and the Marine Liability Act but clarified that the limits are exclusive of any court costs and pre-judgment interest award.