British Columbia Telephone Company and Others v. Marpole Towing Ltd.

British Columbia Telephone Company and Others v. Marpole Towing Ltd.

Majority held Marpole Towing Ltd. entitled to limit liability under s.657 because the collision resulted from the master’s negligent navigation and not from any actual fault or privity of the owner: the owner relied on a universally accepted, reliable local plank‑count method and employed experienced masters; the master’s isolated error was not reasonably foreseeable such that it would impute actual fault to the owner, therefore statutory limitation applies (liability limited to $24,000).

Citation
[1971] SCR 321
Parties
Defendants/appellants: British Columbia Telephone Company and Others; Plaintiff/respondent: Marpole Towing Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 December 1970
Procedural Posture
Admiralty Appeal — Limitation of Liability Under Canada Shipping Act / Appeal to Supreme Court of Canada From Exchequer Court of Canada (admiralty)
Outcome
Appeal dismissed (majority); limitation of liability affirmed
Legal Topics
Limitation of Liability, Actual Fault or Privity, Negligence of Master, Employer/owner Duty of Care, Bridge Collision
Source Language
English

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Parties

British Columbia Telephone Company and Others

Defendants/appellants

Marpole Towing Limited

Plaintiff/respondent

Procedural Posture

Admiralty Appeal — Limitation of Liability Under Canada Shipping Act / Appeal to Supreme Court of Canada From Exchequer Court of Canada (admiralty)

  1. 1 Whether owner entitled to limit liability under s.657 of the Canada Shipping Act where collision caused by negligence of tugmaster
  2. 2 Whether negligence of master amounted to actual fault or privity of the owner
  3. 3 Whether owner breached independent duty by failing to instruct masters to use tide tables or alternate channel given rush‑hour risk

Ratio Decidendi

Majority held Marpole Towing Ltd. entitled to limit liability under s.657 because the collision resulted from the master’s negligent navigation and not from any actual fault or privity of the owner: the owner relied on a universally accepted, reliable local plank‑count method and employed experienced masters; the master’s isolated error was not reasonably foreseeable such that it would impute actual fault to the owner, therefore statutory limitation applies (liability limited to $24,000).

Court Disposition

Appeal dismissed (majority); limitation of liability affirmed

Orders

  • Appeal dismissed
  • Judgment of Exchequer Court limiting Marpole Towing Ltd.’s liability under s.657 upheld