George J. Pollack

The appellant's tug, the Ohio, was leading a flotilla towing a barge when navigational errors by the Ohio's master caused the barge to collide with a moored ship.

The appellant sought to limit its liability under s. 647(2) of the Canada Shipping Act.

The lower courts held the appellant could not limit its liability because the master was a 'directing mind' of the corporation, making his negligence the 'actual fault or privity' of the company.

The Supreme Court of Canada allowed the appeal, holding that the master was not a directing mind as he did not have governing executive authority over corporate policy.

The Court further held that the appellant was entitled to limit its liability based solely on the tonnage of the tug Ohio, rather than the aggregate tonnage of all its vessels in the flotilla.