O’Leary v. Ragone
2022 FC 749
Federal Court, May 20, 2022
Facts: In 2019, two vessels collided on an Ontario lake, resulting in two fatalities. The owners and operators of both vessels commenced proceedings in the Federal Court seeking to limit their liability under the Marine Liability Act. The Court subsequently established deadlines for filing claims against the limitation funds. Although certain injured parties had commenced an action in the Federal Court, they failed to file the required Notices of Claim in one of the limitation proceedings. As a result, they brought a motion seeking an extension of time to file their claims against the limitation fund.
Decision: The Court granted the motion and extended the deadline for filing claims against the limitation fund.
Held: The Court held that filing a Statement of Claim was not the same as filing a Notice of Claim in a limitation proceeding. As a result, the claimants required an extension of time to preserve their claims. In deciding whether to grant the extension, the Court considered several factors, including whether the claimants had consistently intended to pursue their claims, whether the claims had sufficient merit, whether the delay caused prejudice to the opposing parties, and whether there was a reasonable explanation for the delay. The overriding consideration was whether granting the extension would serve the interests of justice.
The Court found that the claimants had demonstrated a continuing intention to advance their claims by participating in the proceedings and filing affidavits, albeit in the wrong court file. Although the explanation for the delay was weak, largely due to counsel's unfamiliarity with the procedural requirements for claims against a limitation fund, there was little evidence that the delay caused meaningful prejudice to the opposing parties. Taking all of the circumstances into account, the Court concluded that it was in the interests of justice to extend the filing deadline and allow the claims to proceed.