Monarch Towing & Trading Co. Ltd. v. British Columbia Cement Co. Ltd.

Monarch Towing & Trading Co. Ltd. v. British Columbia Cement Co. Ltd.

Because the plaintiff was the statutory "owner" (as lessee) of the scow and the negligence of the plaintiff's servants produced improper navigation of both tug and tow, s.657(1) applies to both vessels so that limitation of liability must be computed on the combined tonnage of the tug and the tow under clauses (b) and (d).

Citation
[1957] SCR 816
Parties
Plaintiff Appellant: Monarch Towing & Trading Co. Ltd.; Defendant Respondent: British Columbia Cement Co. Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
1 October 1957
Procedural Posture
Admiralty Appeal Limitation of Liability Under the Canada Shipping Act / On Appeal From Judgment of Sidney Smith D.j.a. (exchequer Court/admiralty) to the Supreme Court of Canada
Outcome
Appeal dismissed with costs.
Legal Topics
Limitation of Liability, Definition of Owner/lessee as Owner, Negligence of Tug Crew, Tonnage Calculation for Limitation, Liability of Tow and Tug as Unit, Improper Navigation
Source Language
English
Transportation Maritime Law Admiralty Shipping Tort Contract Limitation of Liability Definition of Owner/lessee as Owner +4 more

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Parties

Monarch Towing & Trading Co. Ltd.

Plaintiff Appellant

British Columbia Cement Co. Ltd.

Defendant Respondent

Procedural Posture

Admiralty Appeal Limitation of Liability Under the Canada Shipping Act / On Appeal From Judgment of Sidney Smith D.j.a. (exchequer Court/admiralty) to the Supreme Court of Canada

Legal Issues

  1. 1 Whether limitation of liability under s.657(1) is to be computed on combined tonnage of tug and tow or on tug tonnage alone
  2. 2 Whether a lessee/charterer in exclusive possession of a tow is an "owner" for Part XII purposes under s.2(61)
  3. 3 Whether the tow can be treated as an innocent vessel when negligence occurred by the tug's crew

Ratio Decidendi

Because the plaintiff was the statutory "owner" (as lessee) of the scow and the negligence of the plaintiff's servants produced improper navigation of both tug and tow, s.657(1) applies to both vessels so that limitation of liability must be computed on the combined tonnage of the tug and the tow under clauses (b) and (d).

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.
  • Limitation of liability to be computed on combined tonnage of tug "Protective" (60.28 tons) and scow "Marpole 14" (306.35 tons) at $38.92 per ton; plaintiff permitted to pay into court accordingly.