Québec Superior Court Re-Ignites Debate On The Scope Of Maritime Law In Canada

Transport Desgagnés Inc. v. Wärtsilä Canada Inc., 2015 QCCS 5514

In brief

In a case that raises interesting constitutional questions, the Québec Superior Court recently held that the sale of a bedplate and crankshaft for the use aboard a vessel falls outside of the scope of Canadian Maritime Law. As a result, the professional seller is not entitled to benefit from the limitation of liability clause under the contract of sale. Rather, the prohibition against limitation or exclusion of liability clauses for hidden defect under the Québec Civil Code applied. The Québec Court of Appeal is currently seized of the matter.

Case summary

(i) Facts

Transport Desgagnés Inc. ("Desgagnés") operates a fleet of vessels in Canadian and international waters. In 2006, the company bought a new bedplate and reconditioned crankshaft for one of its vessels from the Wärtsilä group ("Wärtsilä"). In October 2009, after more than 13,000 running hours, the new crankshaft suffered a total breakdown while the vessel was operating near Les Escoumins (Québec), causing damages agreed by the parties to be approximately $5.6 million.

(ii) Arguments

The fact that the failure was caused by the insufficient tightening of one of the connecting rods was not disputed, nor an issue at trial. Desgagnés alleged that the crankshaft was defective and badly...