A lower court ruling that awarded $5.6 million to a vessel fleet operator was overturned by the Quebec Court of Appeal after it held that the trial judge erred by applying the Civil Code of Quebec to settle a dispute instead of Canadian maritime law.

In a majority decision, the appeal court held that disputes concerning the repair and supply of engine parts to a ship is subject to Canadian maritime law, and therefore common law rules apply rather than civil law rules of delictual liability. As Canadian maritime law applies, the appeal court reaffirms it is the common law of contract and tort that applies to these cases.

The ruling, met with a sigh of relief by the maritime business world, dispels confusion and uncertainty engendered by the lower court ruling as it reaffirms that Canadian maritime law applies uniformly across Canada and “ousts” the application of provincial law, according to maritime lawyers.