Société Telus Communications and Ors v Peracomo Inc and Ors (The "Realice") - Federal Court (Harrington J) - 6 May 2011

(2011) 822 LMLN 3

Limitation of liability - Limitation Convention - Fishing vessel's gear getting hooked on submarine fibre optic cable - Master of fishing vessel cutting submarine cable to release gear - Owners of cable bringing proceedings in personam and in rem - Whether defendants liable - Whether defendants entitled to limit liability - Whether underwriters entitled to deny coverage

The fishing vessel Realicewas owned by Peracomo Inc, the president and sole shareholder of which was Mr Réal Vallée, who was also the master of the vessel. In June 2006 the Realice, was engaged in snow crab and whelk fishing at Baie-Comeau on the St Lawrence river. Strings of cages were laid on the river bottom, secured at both ends by small anchors, which were attached to buoys. One of the anchors got hooked onto a submarine fibre optic cable owned by the first plaintiff (“Telus”). The anchor with the cable attached was hauled out of the water. Mr Vallée freed the anchor by cutting the cable with an electric saw. A few days later the same thing happened and he cut the cable again.