Judgments

Decision Information

Decision Content

T-3843-73
The Queen (Plaintiff) v.
The Ship Sun Diamond, the Owners of the Ship Sun Diamond, Nichia Kaiun K.K., C. Darnell, Demosthenes G. Gabac, the Ship Erawan, the Owners of the Ship Erawan, John Swire & Sons (Shipping) Ltd., John Swire & Sons Ltd., W. H. Hurford, C. G. Cocksedge (Defendants)
Trial Division, Walsh J.-Vancouver, March 22, 23 and April 15, 1983.
Crown - Torts - Negligence - Nuisance - Action by Crown to recover cost of cleaning up fuel oil discharged from ship in waters in and around Port of Vancouver following collision with another ship - Special case for adjudication in lieu of trial by determination of questions of law - Whether proceedings properly brought in name of Crown instead of National Harbours Board - National Harbours Board Act, R.S.C. 1970, c. N-8, ss. 3(1),(2), 6, 7(1), 8, 11(2), 13(1),(3), 14(1), 24, 28 - Fisheries Act, R.S.C. 1970, c. F-14 (as am. by R.S.C. 1970 (1st Supp.), c. 17, s. 3), s. 33(8),(10) - Canada Shipping Act, R.S.C. 1970, c. S-9, ss. 647, 734 (as added by R.S.C. 1970 (2nd Supp.), c. 27, s. 3(2)) - Financial Adminis tration Act, R.S.C. 1970, c. F-10, s. 66(1), Sch. C - Depart ment of Justice Act, R.S.C. 1970, c. J-2, s. 5(d) - Department of Transport Act, R.S.C. 1970, c. T-15, s. 7(3) - Interpreta tion Act, R.S.C. 1970, c. I-23, s. 16 - The British North America Act, 1867, 30 & 31 Vict., c. 3 (U.K.) (R.S.C. 1970, Appendix II, No. 5], s. 108, Sch. III - National Harbours Board Operating By-law, SOR/70-279 (P.C. 1970-1135), s. 6(2) - Harbour of Vancouver Boundaries Determined and Administration, Management and Control Thereof Trans ferred to the National Harbours Board, SOR/67-417 (P.C. 1967-1581).
Transportation - Action by Crown to recover cost of clean ing up fuel oil discharged from ship in waters in and around Port of Vancouver following collision with another ship Special case for adjudication in lieu of trial by determination of questions of law - Whether and to what extent, if any, owners of ship liable to Her Majesty for damages under the National Harbours Board Act, the Fisheries Act or at common law - National Harbours Board Act, R.S.C. 1970, c. N-8, ss. 3(1),(2), 6, 7(1), 8, 11(2), 13(1),(3), 14(1), 24, 28 - Fisheries Act, R.S.C. 1970, c. F-14 (as am. by R.S.C. 1970 (1st Supp.), c. 17, s. 3), s. 33(8),(10) - Canada Shipping Act, R.S.C. 1970, c. S-9, ss. 647, 734 (as added by R.S.C. 1970 (2nd Supp.), c. 27, s. 3(2)) - Financial Administration Act, R.S.C. 1970, c. F-10, s. 66(1), Sch. C - Department of Justice Act, R.S.C. 1970, c. J-2, s. 5(d) - Department of Transport Act, R.S.C. 1970, c. T-15, s. 7(3) - Interpretation Act, R.S.C. 1970, c. I 23, s. 16 - The British North America Act, 1867, 30 & 31 Vict., c. 3 (U.K.) [R.S.C. 1970, Appendix II, No. 5], s. 108,
Sch. III — National Harbours Board Operating By-law, SORT 70-279 (P.C. 1970-1135), s. 6(2) — Harbour of Vancouver Boundaries Determined and Administration, Management and Control Thereof Transferred to the National Harbours Board, SOR/67-417 (P.C. 1967-1581).
This is an action brought by the Attorney General of Canada on behalf of Her Majesty the Queen to recover the cost of cleaning up fuel oil discharged from the ship Erawan in and around the Port of Vancouver following a collision with another ship. The matter came before the Court as a special case for adjudication in lieu of trial by the determination of the ques tions of law set out in an agreed statement of facts. The questions involve the determination of whether and to what extent, if any, the owners of the ship Erawan, who, in a previous trial were held liable for the collision, are liable to Her Majesty in damages under the National Harbours Board Act, the Fisheries Act or at common law for the clean-up of private as well as public property. The defendants contend. that the proceedings were not properly brought in the name of Her Majesty but that they should have been brought by the Nation al Harbours Board, an agent of Her Majesty with jurisdiction over Vancouver Harbour and other surrounding areas and to which was transferred the administration, management and control of all works and property vested in Her Majesty and situate within the Port of Vancouver.
Held, these proceedings were properly brought in the name of Her Majesty whether on behalf of or in place of the National Harbours Board or as owner of the works and property vested in Her and located in and around Vancouver Harbour or whether as a result of a general right to take action with respect to a public nuisance and to mitigate damages which might foreseeably result therefrom. There is also an arguable case that action might have been taken by the plaintiff under the provisions of the Fisheries Act. The fact that statutory rights are given to an agent or quasi-agent of the Crown in respect of something does not deprive the Crown of the right to institute proceedings in respect of that thing.
While the Crown had no authority to act on behalf of private individuals who may have sustained damages, what was done was reasonable and is a good example of the parens patriae principle, with the Crown acting as a "prudent administrator". In the result, the following would be allowed: the entire cost of the water clean-up, whether within or outside the harbour limits; the costs of the beach and foreshore clean-up on all property belonging to the Crown, but not on private property; equipment damage and costs and expenses of cleaning, and payments to various claimants, including fishermen, to the exoneration of defendants although such payments were volun tary in nature.
CASES JUDICIALLY CONSIDERED
APPLIED:
R. v. Southern Canada Power Co., Ltd., [1937] 3 All E.R. 923 (P.C.), affirming [1936] S.C.R. 4; The Attor-
ney General for Canada v. The Attorney General of the Province of Ontario (1894), 23 S.C.R. 458.
DISTINGUISHED:
Barraclough v. Brown, et al., [1897] A.C. 615 (H.L.); Lagan Navigation Company v. Lambeg Bleaching, Dyeing and Finishing Company, Limited, [1927] A.C. 226 (H.L.); Dominion of Canada v. Province of Ontario, [1910] A.C. 637 (P.C.); The Attorney-General for the Dominion of Canada v. Ewen (1895), 3 B.C.R. 468 (B.C.S.C.); Bethlehem Steel Corporation v. St. Lawrence Seaway Authority, et al., [1978] 1 F.C. 464; 79 D.L.R. (3d) 522 (T.D.); National Harbours Board v. Imperial Oil Limited et al. (not reported, C-773353, judgment dated April 28, 1981(B.C.S.C.)).
CONSIDERED:
The Attorney General of Canada v. Western Higbie et al., [1945] S.C.R. 385; National Harbours Board v. Hildon Hotel (1963) Limited et al. (1967), 64 D.L.R. (2d) 639 (B.C.S.C.); Langlois v. Canadian Commercial Corporation, [1956] S.C.R. 954; Grant v. St. Lawrence Seaway Authority et al. (1960), 23 D.L.R. (2d) 252 (Ont. C.A.); State of California, by and through the Department of Fish and Game v. S.S. Bournemouth, 307 Fed. Supp. 922 (U.S.D.C. 1969); Attorney General v. P. Y. A. Quarries Limited, [1957] 2 Q.B. 169 (C.A.); The "Wagon Mound" (No. 2), [1963] 1 Lloyd's Rep. 402 (Aus. S.C.); Attorney-General of Canada v. Brister et al., [1943] 3 D.L.R. 50 (N.S.S.C.).
REFERRED TO:
Reference re Ownership of the Bed of the Strait of Georgia and Related Areas (1977), 1 B.C.L.R. 97 (C.A.); Reference Re: Offshore Mineral Rights, [1967] S.C.R. 792; Southport Corporation v. Esso Petroleum Co. Ld. et al., [1954] 2 Q.B. 182 (C.A.); Baten's Case (1599), 9 Co. Rep. 53 b; 77 E.R. 810 (In Commun Banco).
COUNSEL:
George Carruthers for plaintiff. Peter Bernard for defendants.
SOLICITORS:
Deputy Attorney General of Canada for plaintiff.
Campney & Murphy, Vancouver, for defend ants.
The following are the reasons for judgment rendered in English by
WALSH J.: This matter was set down for hear ing as a special case for adjudication in lieu of trial by determination of the questions of law set out in an agreed statement of facts on the basis of the
facts set out in said statement which reads as follows:
The Plaintiff and the Defendants [sic] John Swire & Sons (Shipping) Ltd., owner of the Defendant ship "ERAWAN", the Defendant John Swire & Sons Ltd., the Defendant C.G. Cock- sedge, in this case, and for the purpose of this case only, agree that for the determination of the issues herein the following facts are hereby admitted, subject to the qualifications or limitations (if any) hereunder specified:
Provided that this Agreement is made for the purpose of this action only and is not an admission to be used against the Plaintiff or the Defendants in any other case or by anyone other than the Plaintiff or the Defendants.
Provided that additional evidence, either of fact or opinion may be put into evidence at the request of the Court which does not vary or contradict the admissions made herein but no evidence which varies or contradicts the admissions of fact made herein are to be admitted into evidence.
1. The Attorney General of Canada brings this action on behalf of Her Majesty the Queen in right of Canada (hereinafter referred to as "Her Majesty") to recover the cost of cleaning up fuel oil which was discharged from the Defendant "ERAWAN" (hereinafter referred to as "ERAWAN") as hereinafter described.
2. The Defendant John Swire & Sons (Shipping) Ltd. is a United Kingdom Corporation having its head office and chief place of business at 66 Cannon Street, London, England, and on the 25th day of September 1973 and all times material to this action was the owner of the British vessel "ERAWAN" registered at the Port of London of gross tonnage 9,229.
3. At all times material to this action and in particular on September 25, 1973, the Defendant vessel was under the command of the Defendant C.G. Cocksedge employed by the Defendant John Swire & Sons (Shipping) Ltd. and was being piloted by Canadian pilot Captain W.H. Hurford, who was licensed under the Pilotage Act S.C. 1970-71-72, Chapter 52, and amendments thereto.
4. (a) The National Harbours Board (hereinafter referred to as the "Board") is a body corporate incorporated pursuant to the National Harbours Board Act, R.S.C. 1970, Chap. N-8, as amended, and pursuant to section 3(2) of the said Act is thereby deemed to be an agent of Her Majesty for the purposes of the said Act.
(b) For the purpose of and as provided for in the said National Harbours Board Act the National Harbours Board has juris diction over those areas set forth in the Schedule to the said Act including Burrard Inlet, Indian Arm (formerly known as the North Arm), and Port Moody, False Creek and English Bay, Sturgeon Bank and Roberts Bank.
5. By SOR/67-417 (P.C. 1967-1581) the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to sections 6 and 8 of the National Harbours Board Act, inter alia, transferred to the Board for administration, management and control, all works and property vested in Her Majesty and situate within the area of the Harbour of Vancou- ver (sometimes referred to as Vancouver Harbour and the Port
of Vancouver and hereinafter collectively referred to as the Port of Vancouver).
6. Real Property of Her Majesty at the Port of Vancouver under administration, management and control of the Board is subject to the Government Property Traffic Act R.S.C. 1970 Chap. G-10.
7. Real Property of Her Majesty at the Port of Vancouver, under the administration, management and control of the Board is subject to the Municipal Grants Act R.S.C. 1970 Chap. M-15.
8. In 1973 and at all times material to this action the Port of Vancouver was a public and navigable harbour administered by the Board.
9. In 1973 and at all times material to this action the Port of Vancouver:
(a) ranked first in Canada, first on the Pacific Coast of North America, and second only to New York on the entire continent in its tonnage of international trade;
(b) had 49 square miles of deep draft inner harbour with approximately 100 miles of shoreline;
(c) was ice-free and navigable year round and capable of handling a vessel up to 125,000 D.W.T. with a 50 foot draft;
(d) consisted of an Inner and Outer Harbour. The Inner Harbour (Burrard Inlet) is the central core of the Port of Vancouver. However, the total port incorporates a water area of 214 square miles, stretching from Vancouver to the United States Border (excluding the lower reaches of the Fraser River). The major facility of the Outer Harbour is Roberts Bank, a sophisticated bulk handling terminal located some 20 miles south of the city;
(e) was among the top international ports in terms of volume of cargo handled. Exports include grain, coal and coke, sulphur, lumber and logs, pulp, potash, copper ores, fodder and feed, propane gas and general cargo containers. Imports include raw sugar, phosphate rock, common salt, fuel oil, iron, steel, metals and general cargo containers;
(f) was visited by 2,222 foreign going deep sea vessels with a gross registered tonnage of 31,640,000 importing into Canada a cargo of 2,289,000 metric tons and exporting from Canada 27,164,000 metric tons of cargo;
(g) was visited 20,960 times by coastal vessels including B.C. Ferries at Tsawwassen with a tonnage of 39,211 bringing into the Port 4,238,000 metric tons of cargo and taking out of the Port 4,493,000 metric tons of cargo;
10. That in connection with the importation and exportation of cargo referred to in paragraph 9 herein charges are levied, inter alfa, pursuant to the following regulations passed by the Gover nor in Council on the recommendation of the Minister of Transport: Crane Tariff, Vancouver Heavy-Life Crane Tariff, Vancouver False Creek Fishermen's Terminal Dockage Tariff, Tariff of Electric Service Charges, Harbour of Vancouver, Vancouver Tariff of Wharf Charges, Vancouver Tariff of Dockage, Buoyage and Booming Ground Charges, Vancouver Water Service Tariff, Tariff of Elevator Charges, Pacific Har bours Dues Tariff By-Law.
11. That in addition to charges levied as set forth in paragraph 10 herein the Board derives revenue from the lease of lands and premises as illustrated on the chart attached hereto, marked 1 and named Vancouver Harbour (Inner Port) which with the exception of the Lynnterm and Vanterm facilities shown there on were substantially the same in September 1973.
12. That at all material times to this action in 1973 the Board had 439 outstanding leases respecting properties owned by Her Majesty in approximately seven municipalities surrounding the Port of Vancouver. The leases included land, reclaimed land, waterlots, warehouses and other structures from which the Board derived revenue. Most of the properties are shown on the chart marked 1. In 1973 the Board paid the said municipalities some $627,500 as grants in lieu of municipal taxes pursuant to the provisions of the aforementioned Municipal Grants Act.
13. That for the year ended December 31, 1973, the Board had a net income of $1,003,955 from the Port of Vancouver made up as follows:
(a) Harbour Operations and Control (including harbours dues [tolls], dockage, customer
services, miscellaneous and sales) $ 906,431
(b) Open Storage Terminals (rentals) $ 122,254
(c) Container Terminals (wharfage, rentals,
demurrage) $ 469,177
(d) Passenger Terminals (small tools) $ 1,546
(e) Real estate (leases, customer services, mis
cellaneous) $1,897,189
(f) Real estate (Roberts Bank) (rentals) $ 334,022
(g) Terminal operations (wharfage deficiencies, rentals demurrage, customer services mis
cellaneous) $1,884,131
(h) Grain Elevators (wharfage, rental) $ 355,326
(i) Ice manufacturing Plant (rental, sales) $ 14,850
(j) Small Craft Facilities (dockage, wharfage,
rentals, customer services, miscellaneous) $ 66,116
INCOME FROM
TOTAL CUSTOMER SERVICES $5,915,718
NET INCOME FOR 1973 $1,003,955
14. On September 25, 1973, the "ERAWAN" was on a voyage from Tacoma, Washington, U.S.A. to the Port of Vancouver, British Columbia, carrying, inter alia, potash and chemicals. At about 0318 the "ERAWAN", under the conduct of a Canadian licensed pilot Captain William Hurford, was proceeding at the outer approaches to the Port of Vancouver.
15. On the aforementioned date and at a place south west of the Point Grey Bellbuoy outside the limits of the Port of Vancouver the "ERAWAN" came into collision with the motor vessel "SUN DIAMOND", of 8,176 gross tons registered at the Port of Osaka, Japan, owned by the Defendant Nichia Kaiun K.K., with an address at 123-1, Higashi-Machi, Ikuta-Ku
Kobe, Japan. At the time of the collision the "SUN DIAMOND" was outbound from the Port of Vancouver on a voyage to Seattle, Washington, U.S.A. under the conduct of a Canadian licensed pilot, Captain Colin Darnell.
16. The aforementioned collision occurred when the bow of the "SUN DIAMOND" struck the "ERAWAN" amidships puncturing certain tanks containing a quantity of fuel oil which subse quently escaped into the water at or near the place of collision as a direct result of the collision. Following the collision the two vessels were moved to a position east of the line between Point Grey and Point Atkinson which designates the outer limits of the Port of Vancouver. The tide was flooding, and this would bring the oil within the boundaries of the Port of Vancouver.
17. At about 0319 on September 25, 1973, the 1st Narrows Signal Station operated by the Board was notified by the "ERAWAN" of the collision and the Board's Harbour Master, and the pollution control officer, Department of Transport, Government of Canada shortly arrived on the scene of the collision. At 03:40 the Harbour Master requested that Clean Seas Canada Ltd. dispatch its equipment and men to the area of the collision as soon as possible to contain the oil. In accordance with an understanding between the Board and the Canadian Coast Guard, Department of Transport based on an Interim National Contingency Plan designed for dealing with oil spills the Board called upon the Canadian Coast Guard, Department of Transport and its resources for assistance. The Department of Transport took over command of clean up operations at the request of the Board and although the Board continued to provide assistance throughout the clean up opera tion all clean up costs claimed herein were paid for by the Department of Transport.
18. Clean Seas Canada Ltd., which had an oral agreement with the Board to contain oil spills, used its own resources and also obtained clean up assistance from a number of subcontractors who provided resources used in the clean up of the aforemen tioned oil spill which lasted until approximately October 23, 1973. During this period some work was done in all areas designated on the chart attached hereto and marked 2 in red, green or blue representing oil which escaped from the "ERA- WAN". Some water surface clean up work was done at Gambier and Bowen Island, as depicted, to prevent oil from entering those areas. The Department of Transport maintains the Gov ernment Wharf, Snug Cove, Bowen Island.
19. On September 28th, 1973, the "ERAWAN" was towed from English Bay to Burrard Dry Dock in North Vancouver. In the course of this tow the First Narrows as shown on chart marked 1 was closed to marine traffic for approximately one hour and oil booms and other equipment were used to avoid the further spread of oil from the vessel. When the "ERAWAN" was alongside the Dry Dock spokesmen for the Department of Transport advised Clean Seas that the Department would no longer pay for services relative to the continuing escape of oil from the vessel. Clean Seas then made arrangements to bill Burrard Dry Dock for charges for work done in the area of the Dry Dock as a result of any further oil escape. The Clean Seas account for such services has been paid.
20. The aforementioned collision was caused solely by the negligence of either those in charge of the "ERAWAN", servants of the Defendant owner of the "ERAWAN" John Swire & Sons
(Shipping) Ltd. or other persons for whose negligence the said owner John Swire & Sons (Shipping) Ltd. is responsible at law as was found in the judgment of Mr. Justice Collier referred to in paragraph 21 herein.
21. The parties to this Agreement admit the findings of fact contained in the Judgment of Mr. Justice Collier pronounced on January 6, 1975 in cause No. T-3841-73 and T-3842-73 between:
The Owners of the Ship Sun Diamond
Nichia Kaiun K.K.,
Plaintiffs
and
The Ship ERAWAN, The Owners of The Ship ERAWAN, John Swire & Sons Ltd., John Swire & Sons (Shipping) Ltd.,
Defendants
AND BETWEEN: T-3842-73
John Swire & Sons (Shipping) Ltd. Owners of the Ship ERAWAN,
Plaintiffs
and
The Ship Sun Diamond and Captain Darnell
Defendants
Attached and marked 3 is a copy of the Order of the Court respecting limitation of liability pursuant to section 647 and following of the Canada Shipping Act.
22. At the time of the collision the tide was flooding and the Port of Vancouver and some surrounding beaches and foreshore within the limits of the Port of Vancouver were seriously threatened.
23. As a direct result of the collision referred to in paragraphs 15, 16 and 17 herein and as described in the aforementioned judgment approximately 211 tons of fuel oil escaped from the fuel tanks of the "ERAWAN" into waters both adjacent to and in the Port of Vancouver and was deposited on foreshore in those areas depicted on the chart marked 2 to this Agreed Statement of Facts. Some of the oil was contained or pumped off the ship following the collision, some went onto beaches below the high water line and some to the water surface. It was reasonable to conclude that as oil was on the surface of the waters of Burrard Inlet for up to four days some of the oil depicted in blue on the chart marked 2 may have sunk to the seabed in the said areas depicted in blue.
24. The escape of fuel oil from the "ERAWAN" into the Port of Vancouver and surrounding waters and on foreshore as stated herein and as depicted on the chart marked 2 was a direct result of the collision. Complaints were made by approximately 40 commercial fishermen who alleged that oil from the "ERA- WAN" had fouled hulls and commercial fishing gear. Approxi mately $12,600 was paid by Her Majesty to these forty fisher men respecting their complaints.
25. Following the removal of the "ERAWAN" from English Bay to Burrard Dry Dock on September 28, 1973 at approximately 1600 hours the clean up of oil on the surface of the water was
discontinued (or became unnecessary) and all the effort was directed towards the foreshore.
26. A complete summary of costs for clean up of oil, which was prepared by the Department of Transport is attached hereto and marked 4. For the purpose of this Agreed Statement John Swire & Sons (Shipping) Ltd. and John Swire & Sons Ltd. do not question the reasonableness of the costs marked 4 hereto which can be broken down as follows:
Water clean-up $270,568.03
Beach clean-up 297,598.25
Equipment clean-up and sundry 35,548.07
Total $603,714.35
The parties agree that the question of quantum of damages shall be the subject of a Reference if necessary.
27. The Board did not make payment of any of the above-men tioned charges or expenses. Payment was made by the Depart ment of Transport.
28. Following the escape of oil from the "ERAWAN" the Minister responsible for the administration of the Fisheries Act for Canada who was M.P. for West Vancouver Howe Sound attended personally at the scene of the oil cleanup and observed and generally supervised the work that was being done under the direction of the Ministries of Transport and Environment (Fisheries) and Clean Seas Canada Ltd. The Minister did not make any specific direction that action be taken in accordance with Section 33 (10) of the Fisheries Act but believed that he had the power or authority as Minister of Fisheries to direct that clean up action be taken.
29. That in the event the Court finds the provisions of section 33 of the Fisheries Act, as it then was, relevant to the determi nation of the issues between the parties, it is admitted that the owners of the "ERAWAN" exercised all due diligence to prevent the discharge of oil from the vessel.
30. The following lands hereinafter described are owned by Her Majesty:
(a) All the foreshore and bed of the Public Harbour of Burrard Inlet and the area adjacent to the entrance thereto lying east of a line drawn south astronomically from the south-west corner of the Capilano Indian Reserve Number 5 to high water mark of Stanley Park.
(b) The Capilano Indian Reserve No. 5 shown on charts 1 and 2 except certain small portions which have been alienated and which are not material.
(c) Stanley Park shown on charts 1 and 2. The lease of Stanley Park has been granted for 99 years by His Majesty Edward VII to the City of Vancouver with rights of renewal as therein provided but subject to rights of His Majesty as therein pro vided. Legal title to Stanley Park consists of all that portion of the City of Vancouver (and the foreshore adjacent thereto) bounded by the Western limit of District Lot 185, Group One New Westminster District (as shown on the official plan there of filed in the Land Registry Office at Vancouver) and the low water mark of the waters of Burrard Inlet, the First Narrow and English Bay and being all that peninsula lying to the West and North of the Said District Lot 185 known as "Stanley Park".
(d) Deadman's Island, occupied by the Department of National Defence and the Ministry of Transport.
31. No attempt was made by any of the Defendants to abate the nuisance caused by the discharge of oil from the "ERAWAN".
32. Following its escape from the "ERAWAN" oil in varying amounts reached the foreshore at points along approximately 25 miles of coastline, and there was a likelihood that if the oil was not cleaned up from beaches further high tides could refloat and redistribute the oil onto previously clean areas. Attached hereto as 5 and 6 are diagrams published in Canadian Hydrographic Service Publication No. 22 showing inter alia the currents at Maximum Flood and Currents at Maximum Ebb on September 25, 1973.
33. (a) The aesthetic quality and the potential for recreation was impaired in varying degrees in those places where oil reached the foreshore as described in paragraph 30 herein.
(b) The waters and shorelines in the area of the spill depicted on charts 1 and 2 are used as follows:
(1) Public beaches at Stanley Park, Ambleside to Point Atkinson, Caulfied Cove and Snug Cove on Bowen Island;
(2) Three parks near Point Atkinson: Lighthouse, Whytecliff and Parc Verdun;
(3) Thirteen marinas that harbour many commercial fishing vessels and some 3,770 pleasure boats worth an estimated 16 million dollars. It is estimated that pleasure boats moored in Burrard Inlet spent an equivalent 9,400 days during Septem- ber, 1973, 5,000 of these in Burrard Inlet itself;
(4) Scuba diving near Whytecliff Park and Point Atkinson where the underwater region surrounding Whytecliff Park was declared a reserve area on August 7, 1973. It is estimat ed that between 2,000 to 5,000 divers may have visited Whytecliff Park in 1973.
(5) It is estimated that water contact activities valued at $8 million took place during September 1973 on Burrard Inlet beaches.
34. Annexed hereto and marked 7, 8, 9 and 10 are sketches indicating the spread of oil or oily film from the "ERAWAN" over the periods of September 25, 26, 27 and 28.
35. The Department of Transport, on behalf of Her Majesty, administers within the boundaries of the Port of Vancouver, the Government Floats, Caulfied, Lynwood Marina, North Van- couver Government Wharf, which are owned by Her Majesty and were subject to being fouled by oil if the oil from the "ERAWAN" had not been cleaned up.
36. The Department of Transport, on behalf of Her Majesty, maintains approximately 35 Aids to Navigation owned by Her Majesty within the boundary of the Port of Vancouver includ ing radio beacons, light bellbuoys and foghorns. None of these Aids to Navigation were damaged by the oil spill.
37. The aforementioned collision and oil spill occurred in an area populated by fish:
(a) Thousands of adult salmon were in the waters of the Port of Vancouver at the time of the spill; approximately 550 were in the Port en route to spawn at the Capilano River Hatchery owned by Her Majesty and situated on the bank of the Capila- no River some three miles upstream of its mouth as depicted on
the map marked 1 and 2. Hundreds of other fish would spawn naturally in the other spawning streams on the map marked 11 attached hereto. The Capilano River Hatchery is an artificial spawning facility and is part of Her Majesty's salmon enhance ment program.
(b) In June 1973 approximately 600,000 juvenile salmon fish and 41,000 steelhead juvenile fish were released from the said Hatchery after being reared at the Hatchery for 2 years; many of these fish would be expected to migrate to the waters at the approaches to the Port of Vancouver and subsequently return in the fall and subsequent years to spawn at the rivers and streams depicted on the map marked 11 as well as up the aforemen tioned Capilano River Hatchery.
(c) In 1973 a total of approximately 500,000 adult salmon returned from the sea, including the waters in and around the Port of Vancouver, to the Salmon spawning streams depicted on map 11 attached hereto, including the Capilano River Hatchery.
(d) In 1973 the estimated commercial wholesale value of fish (principally salmon) associated with the following six streams and rivers which empty into Burrard Inlet: Capilano River, McKay Creek, Mosquito Creek, Lynn Creek, Seymour River and Indian River, was approximately $500,000. Of that approximately $181,000 represented 145,000 pounds of fish that were harvested in September 1973 from the Point Grey- Burrard Inlet area marked Area 29-C on the Department of the Environment, Fisheries Operations, Statistical Map attached hereto and marked 12.
(e) In September 1973 there was an estimated three to four hundred tons of herring and three hundred tons of anchovy fish present in the waters in and around the Port of Vancouver. The wholesale value of the commercial herring has been estimated at $168,000 to $224,000 for 1973.
(f) In September 1973 the Point Grey-Burrard Inlet area depicted as 29-C on the Department of the Environment Fish eries Operations Statistical Map attached hereto and marked 12 was a nursery ground for several species of flatfish, some of which are commercially important.
(g) In September 1973 and throughout the year ten to twelve boats were estimated to be fishing for crabs and shrimps in the approaches to the Port of Vancouver. Approximately 23,000 pounds of crabs and shrimp with a commercial wholesale value of approximately $14,000 were harvested in September 1973 from the waters in and around the Port of Vancouver depicted as 29-C on the aforementioned map.
(h) The Port of Vancouver supports a sizeable resident popula tion of Dungeness Crabs (Cancer magister). The area between the First and Second Narrows bridges, False Creek and English Bay, are closed to crab fishing. However, crabs from these areas migrate to other areas in Burrard Inlet and Indian Arm and crab larvae will be dispersed throughout the region and enhance the sport and commercial catches.
(i) Crab traps are set along Spanish Banks and Ambleside by sportsfishermen.
(j) The waters and tidal foreshore of Burrard Inlet, Indian Arm and Vancouver Harbour are closed to the taking of shellfish because of bacterial contamination.
(k) Due to congestion due in part to navigation fishing is prohibited in the Port of Vancouver, however the Port serves as a reserve for many varieties of fish including: salmon, crabs, shrimp, flatfish.
(1) The fishing industry in British Columbia is one of the top three industries in the Province.
38. (a) The oil that escaped from the "ERAWAN" is deleterious to fish and is disruptive to their life processes. As a result of the aforementioned spill, the flesh of the fish, if it came into contact with the oil, was subject to being tainted, and the accumulative toxins would likely render fish inedible.
(b) Some of the oil that escaped from the "ERAWAN" would sink and possibly create damage to the sea bed including smothering shellfish beds and interfering with fish feeding or breeding grounds.
39. The effects of oil on salmon fish may be indirect as well as direct. Indirectly food organisms and habitat were affected. It is probable that intertidal organisms in several areas including food organisms of juvenile salmon such as amphipods were killed by suffocation after being coated with oil. There was no evidence of damage to or destruction of salmon resulting from the oil discharge.
40. Access by Her Majesty's subjects to recreational areas for sailing, swimming, sportsfishing and the commercial fishery was affected by the said oil spill and would have been even greater if the said oil spill had not been cleaned up.
41. That among the terms and conditions with respect to the admission of British Columbia into the Union of the Dominion of Canada on May 16, 1871 it was agreed that Canada would assume and defray the charges for the Protection and encour agement of fisheries. Now produced and marked 13 is a copy of a document relating to the entry of British Columbia into the Union.
42. Now produced and marked 14 are copies of documents relating to the agreement between the province of British Columbia and the federal Government declaring the Harbour of Burrard Inlet to be a public harbour and the property of Canada.
43. Now produced and marked 15 is a copy of lease of Stanley Park from the late King Edward VII to the City of Vancouver dated November 1, 1908.
44. Now produced and marked 16 is a copy of the National Harbours Board Act and By-Law A-1 (Operating Regula tions).
45. Now produced and marked 17 is a copy of a map and accompanying index of location and sighting times respecting oil deposited on the foreshore as described in the above-men tioned paragraphs 32 and 33 including Bowen Island and Passage Island.
46. Now produced and marked 18 is a series of photographs depicting some of the oil deposited on the foreshore as described in the above-mentioned paragraphs 32 and 33.
The questions for the determination of this Honourable Court are as follows:
1. Whether the owners of the "ERAWAN" are liable to Her Majesty for damages under the provisions of the National
Harbours Board Act, regulations and by-laws made pursuant thereto.
2. Whether the owners of the "ERAWAN" are liable to Her Majesty for damages under the Fisheries Act.
3. Whether the owners of the "ERAWAN" are liable to Her Majesty for damages in common law through negligence, trespass, public or private nuisance.
4. If the owners of the "ERAWAN" are found to [be] liable to Her Majesty for any of the said clean-up charges, in what area of damage does liability for clean up attach:
i) water clean-up (in all or some locations);
ii) beach-foreshore clean-up (in all or some locations);
iii) both areas (in all or some locations);
iv) equipment damage and costs and expenses of cleaning; NO payments made to various claimants including fishermen.
It is agreed by the parties that the amount of the invoices are recited herein for identification pur poses and are not admitted or agreed as damages as a result of their inclusion in this agreed state ment of facts. The inclusion of any particular fact on this agreed statement is not deemed to be an admission or concession that such fact is relevant to the issues in the within action or to the ques tions for the determination of the Court as set out above.
At the opening of the hearing some amendments were made to the statement of claim so as to add following subparagraph 17(e), an additional sub- paragraph (f) reading "Interest", subparagraph (f) in the original statement of claim now becom ing (g). A further amendment was made so as to strike the first five named defendants and last two named defendants from the style of cause, which is therefore now amended accordingly. This results from the findings of fact in the judgments of Justice Collier pronounced on January 6, 1975 in cause No. T-3841-73 and T-3842-73, between the owners of the ship Erawan and the ship Sun Diamond referred to in paragraph 21 of the agreed statement of facts and his finding of law that the collision was caused solely by the negligence of either those in charge of the Erawan, servants of the defendants owner of the Erawan John Swire & Sons (Shipping) Ltd. or other persons for whose negligence the said owner John Swire & Sons (Shipping) Ltd. is responsible at law as set out in paragraph 20 of the agreed statement of facts.
During argument it was not disputed that the incident took place within the 12-mile limit. Own ership of water rights within the Georgia Straits belongs to British Columbia as a result of a 3 to 2 decision of the British Columbia Court of Appeal in a Reference re Ownership of the Bed of the Strait of Georgia and Related Areas.' The Supreme Court had previously decided in Refer ence Re: Offshore Mineral Rights (B.C.) 2 that the mineral rights belonged to the Federal Crown, provinces only being able to claim land above low water without express legislation to the contrary. This judgment was distinguished in the British Columbia judgment and Crown counsel in the present proceedings stated it was not claimed that the Federal Crown owns the water rights.
It appears from an order issued by Collier J. in December of 1979 that limitation of liability has been made, and that the owners of the ship Sun Diamond and others have been paid the portion due to them so that only the balance of fund, amounting to $377,733.15, remains to satisfy any judgment rendered as a result of the present pro ceedings. While defendants do not admit any lia bility, it is agreed that should liability be found there will be a reference as to damages relating to the quantum only. The present proceedings will decide what, if any, elements of damages can properly be included in the claim.
Defendants contend that the proceedings were not properly brought in the name of Her Majesty the Queen but it is plaintiff's contention that it would not have been appropriate for the National Harbours Board to have commenced an action in the circumstances since not only did it not have the resources to contain the oil but the clean-up was in fact directed by and paid for by the Department of Transport on behalf of Her Majesty. If the action had been brought by the National Harbours Board it is, plaintiff contends, an agent of the Crown, and
' (1977), 1 B.C.L.R. 97 [C.A.]. 2 [1967] S.C.R. 792.
that the principal must have the same rights as the agent.
In support of its contention that the action was properly brought plaintiff relies on the provisions of the National Harbours Board Act 3 and what is referred to as the Six Harbours Agreement entered into in June, 1924 between the two govern ments that the harbour of Burrard Inlet, inter alfa, is a public harbour within the meaning of The THIRD SCHEDULE of The British North America Act, 1867, 4 having become the property of Canada as of July 20, 1871 by virtue of section 108 of the said Act and of Order in Council dated May 16, 1871, which agreement was confirmed by Order in Council P.C. 941, June 7, 1924.
By SOR/67-417 the Governor in Council trans ferred to the National Harbours Board the man agement, administration and control of all works and property vested in Her Majesty and situate within the area of the Harbour of Vancouver.
Plaintiff contends that Her Majesty is not pre cluded from bringing an action in Her own name for damages for negligence and nuisance for pollu tion to the waters which are the subject of Her jurisdiction. The waters of the harbour may not constitute a "work or property" but Her Majesty's jurisdiction over the harbours is for purposes of litigation and the recovery of damages in the nature of a proprietory right. Her Majesty does not own the sea bed of English Bay but she does own the sea bed and foreshore of Burrard Inlet by virtue of the Six Harbours Agreement. In support of this reference was made to the case off The Attorney General of Canada v. Western Higbie et al., 5 in which it will be noted that the plaintiff was the Attorney General of Canada suing on behalf of His Majesty the King to get possession of the land covered by water in the bed of Coal Harbour and the Harbour of Vancouver. The judgment of Rin- fret C.J. points out at page 404:
When the Crown, in right of the Province, transfers land to the Crown, in Right of the Dominion, it parts with no right. What takes place is merely a change of administrative control.
3 R.S.C. 1970, c. N-8.
4 30 & 31 Vict., c. 3 (U.K.) found in R.S.C. 1970, Appendix II, No. 5.
5 [1945] S.C.R. 385.
On the same page the learned Chief Justice points
out:
... it is admitted by the Province of British Columbia that the Dominion held the foreshore of Coal Harbour as owner since 1871.
At page 408 reference is made to the case of The Attorney General for Canada v. The Attorney General of the Province of Ontario" where at page 469, Strong C.J. said:
That the crown, although it may delegate to its representatives the exercise of certain prerogatives, cannot voluntarily divest itself of them seems to be a well recognized constitutional canon.
At the time this action was brought the Nation al Harbours Board could sue and be sued in its own name 7 and this same provision still remains in the present National Harbours Board Act (supra).
By virtue of the Department of Justice Acts the Attorney General for Canada shall
5....
(d) have the regulation and conduct of all litigation for or against the Crown or any public department, in respect of any subject within the authority or jurisdiction of Canada
The National Harbours Board is defined as an agency corporation pursuant to subsection 66(1) of the Financial Administration Act 9 being a Crown corporation named in Schedule C.
Plaintiff refers to a number of sections of the National Harbours Board Act as a result of which it may be said that the National Harbours Board is Her Majesty's "alter-ego". Inter alla, subsection 3(2) of the Act provides that the Board is an agent of Her Majesty, the members of the Board are appointed by the Governor in Council [subsection 3(1)] and the Government Employee's Compensa tion Act [R.S.C. 1970, c. G-8] applies to all employees who receive their benefits, except sal aries, as employees in the Public Service. Subsec tion 7(1) gives the Board jurisdiction inter alfa, over Vancouver Harbour, the boundaries of which
" (1894), 23 S.C.R. 458.
' National Harbours Board Act, 1936, S.C. 1936, c. 42, subs.
3(3).
8 R.S.C. 1970, c. J-2.
9 R.S.C. 1970, c. F-10.
are set by the Governor in Council. All property acquired or held by the Board is vested in Her Majesty in Right of Canada (subsection 11(2)). Contracts awarded by the Board above a certain amount must be approved by the Governor in Council (subsection 13(3)) which makes by-laws for the direction, conduct and government of the Board and its employees and the administration, management and control of the several harbours works and property under its jurisdiction [subsec- tion 14(1)]. All monies received by the Board are paid to the Receiver General of Canada and advances are made out of the Consolidated Reve nue Fund to the Board by the Minister of Finance for working capital purposes (section 28). Monies received by the Board are paid to the credit of the Receiver General and credited to a special account designated the National Harbours Board Special Account (section 24). The land under the jurisdic tion of the Board is subject to the Government Property Traffic Act'° and the Board does not pay taxes but makes grants under the Municipal Grants Act".
Reference is made by the plaintiff to the case of R. v. Southern Canada Power Co., Ltd. 12 That action was commenced in the Exchequer Court by the Crown concerning damage to a railway train on an embankment operated by the CNR. The railway was the property of the Dominion of Canada and ownership had never been conveyed to the CNR although the company had been en trusted with its management and operation by statute and given the right to bring an action of this kind. Both the Supreme Court of Canada and the Privy Council held that the Crown was the proper party to bring the action. At page 927, Lord Maugham referred to the "admirably clear" statement of Mr. Justice Davis found in [1936] S.C.R. 4, at pages 8-9 as follows:
A preliminary objection was raised by the appellant at the trial and renewed before us that the Crown had no right to take these proceedings in the Exchequer Court of Canada, the contention being that the right of action was by statute vested in the Canadian National Railways Company and that that company could only sue in the ordinary courts and not in the
10 R.S.C. 1970, c. G-10.
" R.S.C. 1970, c. M-15.
' 2 [1937] 3 All E.R. 923 [P.C.].
Exchequer Court of Canada. The learned trial judge carefully reviewed the statutory law upon the subject and concluded, I think rightly, that the Crown was the owner of the railway and had never given up its right to sue for any claim it had in connection with the operation of the railway.
Again on the same page [9]:
While a right of action was given to the railway company by sec. 33 of the Canadian National Railway Act, R.S.C. 1927, ch. 172, and this action might have been taken in the name of the Canadian National Railways Company, His Majesty in right of the Dominion of Canada did not relinquish his right as owner to sue.
The Minister of Transport administers the Na tional Harbours Board Act and under subsection 7(3) of the Department of Transport Act 13 the duties, powers and functions of the Minister extend to the National Harbours Board over which he has the control, regulation, management and supervision. In the present case when the collision occurred the National Harbours Board initially asked for the assistance of the Ministry of Trans port in cleaning up the oil but soon realized that the Board itself did not have the resources to do the job and turned the handling of the clean-up over to the Ministry of Transport. Its actions in cleaning up the nuisance could, it is contended, be considered in connection with the control of the National Harbours Board by the Minister of Transport acting through his local officials. Defendants in their argument refer to subsection 6(2) of By-law A-1 being the operating regulations of the National Harbours Board 14 which reads as follows:
6....
(2) The Board may remove any encumbrance, obstruction, nuisance or possible cause of danger or damage at the risk and expense of the person who is responsible therefor.
They contend that there was no transfer by the National Harbours Board to the Department of Transport nor to the Crown of the right to sue for the expense incurred in having the nuisance removed by Clean Seas, the party engaged by the Department of Transport to undertake the work.
13 R.S.C. 1970, c. T-15.
14 [SOR/70-279] P.C. 1970-1135, June 23, 1970.
Reference was made to the British Columbia case of National Harbours Board v. Hildon Hotel (1963) Limited et al. 15 where leaking oil from the hotel was accidentally pumped into the harbour. The Board took steps to get rid of the oil and charged the hotel company under the provisions of the by-law which contained somewhat similar provisions of those of the present by-law. The Court discussed the difference between private nuisance and public nuisance stating that plaintiff had no claim in so far as its right was vested in private nuisance. At page 644 the judgment refers to the words of Denning L.J. in Southport Corpo ration v. Esso Petroleum Co. Ld. et al. 16 where he states:
The term "public nuisance" covers a multitude of sins, great and small.
The Hildon Hotel judgment goes on to say [at page 644]:
... the plaintiff here suffered no personal damage unless it can be said that the defendants' action invoked a statutory obliga tion on the plaintiff to expend monies to clean up the pollution. It is unnecessary however to speculate on the extent to which public nuisance may cover the present case, for it clearly comes under the heading of nuisance in art. 4(2) and (3) of the by-law, supra, and may properly be termed a "statutory nuisance".
It was the Harbours Board which brought the action, however. The defendant also refers to the Supreme Court of Canada case of Langlois v. Canadian Commercial Corporation" in which the judgment of Kerwin C.J. stated at page 956:
If the obligation in this case had been incurred on its own behalf, the decision of the Judicial Committee in International Railway Company v. Niagara Parks Commission ([1941] A.C. 328, [1941] 2 All E.R. 456, [1941] 3 D.L.R. 385, [1941] W.W.R. 338, 53 C.R.T.C. 1) would apply. It was there held that there was nothing to prevent an agent from entering into a contract on the basis that he is himself to be liable to perform it as well as his principal and that the Commissioners, having entered into a certain agreement "on their own behalf", as well as on behalf of the Crown, had done so on the express terms that they were to be liable for its fulfilment. By the latter part of s. 10 of the respondent's Act, the obligation here in question is to be taken to have been incurred on its own behalf. It is, therefore, in the same position as if it were not an agent for the Crown and it is subject to the general law of the province of Quebec, as the case was fought on the basis that it was the law of that province that was applicable.
15 (1967), 64 D.L.R. (2d) 639 [B.C.S.C.].
16 [1954] 2 Q.B. 182 [C.A.], at p. 196.
17 [ 1956] S.C.R. 954.
In the case of Grant v. St. Lawrence Seaway Authority et al. 18 it was held that civil proceedings for an injunction or a declaration in respect of an alleged public nuisance are open only to the Attor ney General suing either alone or on the relation of another. In either case the Attorney General has an unfettered discretion in deciding whether to sue whereas a private person, unless he has sustained some special damage over and above that affecting the public at large or unless he is asserting some special statutory benefit, cannot bring an action to enjoin a public nuisance. This would appear to support plaintiff's contention that action is proper ly brought by Her Majesty the Queen rather than by the National Harbours Board.
Defendants refer to section 13 of the National Harbours Board Act, which, in subsection (1), provides that the Board shall call tenders by public advertisement for the execution of works unless inter alia the cost will not exceed $15,000 or there is a pressing emergency in which delay would be injurious to the public interest, which is certainly the case here. Subsection (3) provides, however, that no contract for the execution of any such work shall be awarded without the approval of the Governor in Council in any event for an amount in excess of $15,000 unless, inter alia, the amount of the contract as indicated by the tender of the person to whom the contract is to be awarded does not exceed $50,000. There were, of course, no tenders in the present case and the cost greatly exceeded $50,000. As stated in paragraph 17 of the agreed statement of facts the Harbour Board was notified of the collision and the Board's har bour master and the pollution control officer of the Department of Transport arrived at the scene of the collision, whereupon the harbour master requested that Clean Seas Canada Ltd. dispatch its equipment and men to the area of the collision as soon as possible to contain the oil. In accord ance with an understanding between the Board and the Canadian Coast Guard, Department of Transport, based on an Interim National Contin gency Plan designed for dealing with oil spills, the Board called upon the Canadian Coast Guard, Department of Transport and its resources for assistance whereupon the Department of Trans-
" (1960), 23 D.L.R. (2d) 252 (Ont. C.A.).
port took over, command of the clean-up operations at the request of the Board, although the Board continued to provide assistance while all clean-up costs were paid for by the Department of Trans port. While the Interim National Contingency Plan does not have the force of law, defendants do not contend that the Board and Department of Transport did not act prudently in the matter and I do not think it is incumbent upon defendants to raise the absence of approval by Order in Council as an issue preventing the National Harbours Board from claiming the costs incurred in this clean-up nor the Department of Transport acting on its behalf by engaging and paying for the services of Clean Seas, nor that the Crown cannot claim in the event that the National Harbours Board, its agent, could not as a result of the lack of such Order in Council. If anything, it appears to me that this is another reason why it was prefer able to bring proceedings in the name of Her Majesty.
Plaintiff also relies on subsection (10) of section 33 of the Fisheries Act 19 which read at the time of institution of proceedings as follows:
33....
(10) No civil remedy for any act or omission is suspended or affected by reason that the act or omission is an offence under this section, and where, by reason of the occurrence or exist ence in, upon or adjacent to any water frequented by fish of any condition resulting from an act or omission by a person that is an offence under this section, the Minister directs any action to be taken by or on behalf of the Crown to repair or remedy the condition or reduce or mitigate any damage to or destruction of life or property that has resulted or may reasonably be expected to result from its occurrence or existence, the costs and expenses of and incidental to the taking of such action, to the extent that such costs and expenses can be established to have been reasonably incurred in the circumstances, are recoverable by the Crown from that person with costs in proceedings brought or taken therefor in the name of Her Majesty in any court of competent jurisdiction.
While there was no formal direction by the Minis ter to clean-up the oil spill, the Minister of Fisher ies, who happened to be the Member of Parlia ment for West Vancouver-Howe Sound at the time, attended personally at the scene of the oil clean-up and observed and generally supervised the work that was being done under the direction
19 R.S.C. 1970, c. F-14, as amended by [R.S.C. 1970] (1st Supp.), c. 17 [s. 3].
of the Ministries of Transport and Environment (Fisheries) and Clean Seas Canada Ltd. It is admitted in paragraph 28 of the agreed statement of facts that he believed he had the power or authority as Minister of Fisheries to direct that clean-up action be taken. Under the circum stances, it would appear there was no need for written direction, his presence at the scene con stituting at least approval of what was being done. Defendants further argue subsection (10) is not operative unless the violators are guilty of an offence which was not the case in the present circumstances.
Subsection (8) of section 33 reads as follows:
33....
(8) In a prosecution for an offence under this section or section 33.4, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without his knowledge or consent and that he exercised all due diligence to prevent its commission.
It may introduce the doctrine of respondeat supe rior but it was the pilot who was found responsible by the judgment of Collier J. for the collision which resulted in the oil spill. He has not been prosecuted for the offence and, in any event, it was committed without the knowledge or consent of the defendant vessel or owners nor was there any lack of diligence on their part in preventing the collision. The defendants argue that subsection (10) merely gives a right of recovery from the person responsible for the offence—that is to say, the compulsory pilot, licensed by the Canadian government itself, so that an estoppel would oper ate against the present claim.
There is considerable force in the defendants' argument that in the absence of proof of commis sion of an offence which is not in issue before the Court in these proceedings, or in any event an offence for which defendants can be held liable, section 33 of the Fisheries Act cannot be invoked to justify plaintiff's claim. It is true that the Fisheries Act as a whole did not appear to give authority for the cleaning up of oil spills despite the fact that they are undoubtedly severely damag ing to fisheries. Nevertheless, the Minister was present and assisted in directing the clean-up and
undoubtedly acted properly in doing so and might perhaps be said to have been acting on behalf of the Crown in so doing. In any event, plaintiffs right to claim does not rely solely on the provisions of the Fisheries Act.
In further support of proceedings being brought in the name of the Crown plaintiff also invokes the doctrine of parens patriae contending that the Attorney General not only represents Her Majes- ty's interests but is the guardian of the public interest generally. This involves the institution of proceedings in cases of public nuisance. In the text by G. S. Robertson, The Law and Practice of Civil Proceedings by and against the Crown and Departments of the Government [London: Stevens and Sons, Limited, 1908], I find the statement at page 2:
The right of the Crown, however, to proceed by prerogative process is often specifically preserved, and still exists, unless specifically forbidden; and it is not seldom exercised, in spite of a special provision for suits by or against a particular Govern ment department.
The general principle has been recognized in the American Courts in the case of the State of Cali- fornia, by and through the Department of Fish and Game v. S.S. Bournemouth 2° in which at page 929 the general observation appears:
Oil pollution of the nation's navigable waters by seagoing vessels both foreign and domestic is a serious and growing problem. The cost to the public, both directly in terms of damage to the water and indirectly of abatement is consider able. In cases where it can be proven that such damage to property does in fact occur, the governmental agencies charged with protecting the public interest have a right of recourse in rem against the offending vessel for damages to compensate for the loss.
There appears to me to be little doubt that an oil spill constitutes a public nuisance and that it is important that it should be cleaned up as rapidly as possible to mitigate the damages caused by it. Whether this is done by the National Harbours Board or the Department of Transport it would not be going too far to say that the Crown is under at least a moral, if not a legal, obligation to see
20 307 Fed. Supp. 922 (U.S.D.C. 1969).
that this is undertaken. In the case of Attorney General v. P. Y. A. Quarries Limited, 2' Denning L.J., as he then was, stated at page 190 in distin guishing between a public nuisance and a private nuisance:
The classic statement of the difference is that a public nuisance affects Her Majesty's subjects generally, whereas a private nuisance only affects particular individuals.
He goes on to state [at page 190]:
So here I decline to answer the question how many people are necessary to make up Her Majesty's subjects generally. I prefer to look to the reason of the thing and to say that a public nuisance is a nuisance which is so widespread in its range or so indiscriminate in its effect that it would not be reasonable to expect one person to take proceedings on his own responsibility to put a stop to it, but that it should be taken on the responsibil ity of the community at large.
The question of whether plaintiff can recover for expenses incurred cleaning up the oil spill from private property will be dealt with later when I come to consider the question of damages but I have little doubt that a serious oil spill, even if it originated outside the limits of the Port of Vancou- ver (see paragraph 15 of agreed statement of facts), which drifted into the harbour and on to the foreshore, constituted a public nuisance. In the case of The Attorney-General for the Dominion of Canada v. Ewen and The Attorney-General for the Dominion of Canada v. Munn, 22 the cause of action dealt with a claim for injunctions restrain ing the defendants, their servants, agents or work men from permitting offal or remnants of fish or other deleterious matter to pass into the Fraser River. At page 470 the judgment states:
The defendant's first ground is that, as the Dominion Legis lature has expressly legislated with respect to offal, and imposed fines and imprisonment for any infraction of the law to be recovered before Justices of the Peace, therefore this Court has not power to impose an additional penalty by way of injunction and he relies on the Institute of Patent Agents v. Lockwood, (1849) App. Cas. 347.
If this was an action to recover damages for allowing the offal to escape into the river, there would be great force in the contention, but what the plaintiff seeks to restrain is the nuisance which arises from the defendant's neglecting to comply with the law; the nuisance affects the public, and
21 [1957] 2 Q.B. 169 [C.A.].
22 (1895), 3 B.C.R. 468 [B.C.S.C.].
whether or not there was any law prohibiting the placing of the offal in the river, the defendant would be liable for a nuisance, even if it arose from doing a lawful act ....
An Australian case in the Supreme Court of New South Wales, that of The "Wagon Mound" (No. 2) 23 is of interest. A spillage of oil occurred from the vessel into the harbour while bunkering. It was held that although the result of the spillage was not reasonably foreseeable the defendant was not liable in negligence but the court found that the spillage created a public nuisance. The head- note reads in part:
(i) that plaintiffs could not maintain claim based on private nuisance because there was no interference with use and enjoy ment by plaintiffs of their land, but liability for public nuisance was not restricted to cases of injury to plaintiffs' interests in their land, nor was it essential that the nuisance should ema nate from defendant's land; that, if defendant created a nui sance and there was then a public nuisance on navigable waters open to the public, defendant was prima facie liable, although it was not negligent; (ii) that presence of large quantity of oil on harbour waters constituted a public nuisance; (iii) that plaintiffs suffered "particular injury" in that they suffered serious losses which other members of the public did not suffer....
(The oil took fire in the harbour and damaged plaintiffs' vessel.)
Defendants contend that the Crown cannot recover on the basis of a public nuisance having been caused, as it has not suffered special damage to property or chattels. The admitted facts dis close, however, that approximately 211 tons of fuel oil escaped into waters both adjacent to and in the Port of Vancouver being deposited in part on the foreshore and onto beaches below the high water line. Forty commercial fishermen had fouled hulls and commercial fishing gear and approximately $12,600 was paid by Her Majesty to them respect ing these complaints. Her Majesty owns lands described in paragraph 30 of the agreed statement of facts including the foreshore and bed of the public harbour of Burrard Inlet and Stanley Park. Oil reached the foreshore at points along approxi mately 25 miles of coastline (paragraph 32) and there was a likelihood that if it was not cleaned up from the beaches further high tides would refloat and redistribute it onto previously clean area.
23 [1963] 1 Lloyd's Rep. 402 [Aus. S.C.].
There are a number of public beaches, parks and thirteen marinas in the area and scuba diving takes place at a place where the underwater region has been declared a reserve. The Department of Trans port, on behalf of Her Majesty, administers within the boundaries of the Port of Vancouver various government floats and wharves owned by Her Majesty which were in danger of being fouled if the oil had not been cleaned up. There were 439 leases respecting properties owned by Her Majesty in areas surrounding the Port of Vancouver (para- graph 12). It is difficult to see how defendants can contend that the Crown has not suffered any spe cial damage to property or chattels.
Defendants contend, however, that since the Crown has statutory remedies in the form of fines for oil pollution and civil liability in certain cir cumstances, it should be limited to those rémedies. Reference was made to Part XX of the Canada Shipping Act inserted by chapter 27 of the Second Supplement of the 1970 Revised Statutes dealing with pollution and specifically to section 734 which creates civil liability and specifically authorizes proceedings to be instituted by Her Majesty against the owners of the ships and the owners of the pollutant to recover the reasonable costs of reducing or mitigating the damage which may reasonably be expected to result from the discharge.
The existence of such a statutory remedy does not, I believe, deprive Her Majesty of the right to exercise common law rights available to Her, nor does the jurisprudence referred to by defendants in support of this justify such a general conclusion. I have dealt with the Attorney-General v. Ewen case (supra) and the case of Barraclough v. Brown, et al., 24 merely dealt with Court jurisdiction and did not involve the Crown. The case of Attorney-Gen eral of Canada v. Brister et al. 25 in the Nova Scotia Supreme Court led to a divided opinion, the learned judges dividing 2 to 2 on this issue although agreeing in the appeal for other reasons. I find of particular interest the statement of Smiley J. at pages 72-73:
24 [1897] A.C. 615 [H.L.].
25 [1943] 3 D.L.R. 50 [N.S.S.C.].
In 1 Hals. (2nd ed.), p. 11, para. 11, appears the following statement taken from the decision of Willes J. in Wolverhamp- ton New Waterworks Co. v. Hawkesford, 6 C.B. (N.S.) 336 at p. 356, 141 E.R. 486:
"There are three classes of cases in which a liability may be established founded upon a statute. One is where there was a liability existing at common law, and that liability is affirmed by a statute, which gives a special and peculiar form of remedy different from the remedy which existed at common law. There, unless the statute contains words which expressly or by necessary implication exclude the common law remedy, the party suing has his election to pursue either that or the statutory remedy. The second class of cases is where the statute gives the right to sue merely, but provides no particular form of remedy. There the party can only proceed by action at common law. But there is a third class, viz., where a liability not existing at common law is created by a statute which, at the same time, gives a special and particular remedy for enforcing it .... The remedy provided by the statute must be followed, and it is not competent to the party to pursue the course applicable to cases of the second class."
Paragraph 11 proceeds as follows: "In each case, however, in deciding whether a statutory remedy is, or is not, intended to be the only remedy for breach of the statutory duty, the particular statute must be examined. And even where the ordinary remedy by action for damages is excluded, there may also be a concurrent remedy by injunction."
In my opinion the Navigable Waters' Protection Act does not exclude any remedy which existed under the common law previous to its enactment.
Defendants further contend that the Crown, having elected the remedy of abatement is unable to proceed with any other remedy, relying on the very ancient Baten's Case 26 which held that a nuisance may be redressed by action, or by the party aggrieved entering and abating the nuisance, but in the latter case he shall not have an action nor recover damages, and on the cases of Ewen and Brister (supra) and on the case of Lagan Navigation Company v. Lambeg Bleaching, Dyeing and Finishing Company, Limited" in which the headnote states: "The abatement of a nuisance by a private individual is a remedy which the law does not favour." Here we are dealing with the Crown which, through agents, took steps to abate the nuisance, and under contemporary con ditions of increasing danger of serious ecological damage from oil spills, it is indisputable that this should be done immediately and is not an alterna tive remedy to claiming compensation for the dam
26 (1599) , 9 Co. Rep. 53 b; 77 E.R. 810 [In Communi Banco] .
27 [1927] A.C. 226 [H.L.].
ages caused by the spill.
To decide otherwise would constitute an unjust enrichment for defendants who were admittedly incapable of cleaning up the spill themselves, but whose vessel created the nuisance, whether the action can be based on negligence for which they are responsible or not.
Defendants made one further argument namely, that even if the Crown has jurisdiction with respect to navigable waterways, this is restricted to areas of federal jurisdiction. It has already been stated (supra) that as a result of the Reference re Ownership of the Bed of the Strait of Georgia and Related Areas, Her Majesty, in the present case, does not claim ownership of the water rights within the Georgia Straits. I do not believe that it follows, however, that Her Majesty in Right of Canada cannot take any responsibility for abate ment of a public nuisance occurring therein and more specifically the area in question, including Burrard Inlet under the jurisdiction of the Nation al Harbours Board, which by the Six Harbours Agreement was declared to be a public harbour, the property of Canada.
The case of Dominion of Canada v. Province of Ontario 28 adds little to this contention, merely confirming that there is a distinction between the Crown in Right of Canada and the Crown in Right of a Province, as in the Ewen case (supra).
Before concluding this part of the reasons refer ence might also be made to section 16 of the Interpretation Act 29 which reads:
16. No enactment is binding on Her Majesty or affects Her Majesty or Her Majesty's rights or prerogatives in any manner, except only as therein mentioned or referred to.
In conclusion, therefore, I find that the present proceedings are properly brought in the name of Her Majesty the Queen in Right of Canada whether they have been brought on behalf of and in place of the National Harbours Board which might perhaps have brought them, or as owners of the works and property in the Harbour of Vancou-
28 [1910] A.C. 637 [P.C.].
29 R.S.C. 1970, c. I-23.
ver transferred to the Board for administration, management and control, and other real property within Burrard Inlet inter alia, or whether as a result of a general right to take action with respect to a public nuisance and mitigate damages which might foreseeably result therefrom. There is also an arguable case that action might perhaps have been taken by plaintiff under the provisions of the Fisheries Act, as among the terms and conditions with respect to the admission of British Columbia into the Union of the Dominion of Canada on May 16, 1871, it was agreed that Canada would assume and defray the charges for the protection and encouragement of fisheries (paragraph 41 of the agreed statement of facts). It is not necessary to rely on the Fisheries Act, however, to justify Her Majesty in bringing the present proceedings.
The jurisprudence does not establish that because a statutory right is given to the Crown or to some agent or quasi-agent of the Crown, which has been given certain rights for administrative purposes as a matter of convenience, the Crown is thereby deprived of Her right to institute proceed ings. See in this connection R. v. Southern Canada Power Co., Ltd. and The Attorney General for Canada v. The Attorney General of the Province of Ontario (both supra).
I now turn to the question of damages. The Crown in cleaning up the oil spill was not acting on behalf of defendants by virtue of any express or implied authority. Private owners of lands on the foreshore which might have been damaged by the oil spill would have had an action available to them against defendants for private nuisance and possibly for negligence although I make no finding on this since the issue is not before me. Neverthe less by taking or authorizing the taking by appro priate agents of proper measures to contain and abate the consequences of the oil spill and thus abate the public nuisance, some benefit was undoubtedly conferred on such proprietors and a multiplicity of actions thereby avoided which inured to the benefit of defendants. While the Crown has no authority to act on behalf of private individuals who might have had claims, nor would it most probably have any legal responsibility towards them had it failed to do so since their action would be against defendants, what was done was reasonable and appears to be a good example
of the parens patriae principle with the Crown, through its agents, acting as what is referred to in civil law as "bon père de famille" or "prudent administrator" as this phrase is usually translated.
It is nevertheless a serious matter to take steps, however reasonable, to abate claims which but for this intervention might have been made against another, and then to claim compensation for the costs of the work so undertaken, so that the extent to which plaintiff can be compensated for such work is a difficult one.
In paragraph 26 of the agreed statement of facts a summary of costs prepared by the Department of Transport indicated water clean-up $270,568.03; beach clean-up $297,598.25; equipment clean-up and sundries $35,548.07; Total $603,714.35. No break down of figures was given, this being left to the reference on the quantum of damages.
Paragraph 24 states that payments totalling $12,600 were made to approximately 40 commer cial fishermen who had claimed that the oil had fouled hulls and commercial fishing gear. These payments would appear to have been made on a voluntary basis but as indicated, by the making of same defendants were relieved of the possibility of actions by these fishermen.
In the as yet unreported case in the Supreme Court of British Columbia No. C-773353 National Harbours Board v. Imperial Oil Limited et al., judgment dated April 28, 1981, oil had been pumped into a wrong fill pipe leading into an abandoned underground tank where it spilled out onto the furnace room floor in the bus depot and eventually entered a storm sewer being carried into the harbour. It was found that the employee was negligent but on page 10 the judgment states:
Despite my findings, the plaintiff's action founded in negli gence must fail. The plaintiff did not show any damage to itself or to its property by the acts of the defendants. The expense of cleaning the oil from the water in the harbour arose from the statutory undertaking placed upon it by the Act and the by-law.
The judgment goes on to state on the same page that the plaintiff's action in nuisance against the employee and Imperial Oil Limited based on his acts in the course of employment must succeed. Reference was also made to the case of Bethlehem Steel Corporation v. St. Lawrence Seaway Au thority, et aî., 3 ° judgment by brother Addy J. This dealt with economic loss. However, there had been no damage to the person of the claimant or to property in which the claimant might have some actual or potential proprietory interest. It was found that the general rule is that damage is not recoverable even where it might have been foresee able and where the proper cause of relationship between the tortious act and the damage exist. Neither of these cases is of much help in deciding the elements of damage that should be allowed in the present case.
There was, as of December 4, 1979, the date of the limitation of liability order, an amount of $377,733.15 remaining as principal in the limita tion fund. Since both the payments out of it result ing from the said order provided for payment of interest from 1973 and presumably the final judg ment to be rendered herein after the reference would make similar provision, it may well be that there will not be sufficient money in the fund to settle any very large portion of plaintiffs claim herein. Nevertheless, a finding has to be made so that the referee and the parties may be guided as to what elements of damages may be considered. In this connection I would allow the entire cost of the water clean-up, whether within or outside the harbour limits, the costs of the beach and fore- shore clean-up on all property belonging to the Crown, but not on private property, equipment damage and costs and expenses of cleaning, and payments made to various claimants, including fishermen, to the exoneration of defendants although such payments were voluntary in nature.
ORDER
Questions for determination of this Honourable Court are answered as follows:
1. Whether the owners of the Erawan are liable to Her Majesty for damages under the provisions of
30 [[1978] 1 F.C. 464]; 79 D.L.R. (3d) 522 [T.D.].
the National Harbours Board Act, regulations and by-laws made pursuant thereto.
A. Yes.
2. Whether the owners of the Erawan are liable to Her Majesty for damages under the Fisheries Act.
A. Possibly not and not essential for purposes of this claim.
3. Whether the owners of the Erawan are liable to Her Majesty for damages in common law through negligence, trespass, public or private nuisance.
A. Defendants are liable to Her Majesty in common law for public nuisance and, to the extent that She or a Crown agency on whose behalf She is suing is the owner of private property damaged by the oil spill, for private nuisance.
4. If the owners of the Erawan are found to be liable to Her Majesty for any of the said clean-up charges, in what area of damage does liability for clean-up attach:
(i) water clean-up (in all or some locations)?
A. Liability attaches for this in all locations affected by the oil spill.
(ii) beach foreshore clean-up (in all or some locations)?
A. In all beach and foreshore owned by Her Majesty or by an agency on whose behalf She is suing.
(iii) both areas (in all or some locations)? A. See answer above.
(iv) equipment damage and costs and expenses of cleaning?
A. All such damage.
(v) payments made to various claimants including fishermen?
A. Such payments, although made voluntarily, to the exoneration of defendants.
There shall be a reference as to damages. Costs of this motion are in favour of plaintiff.
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