The appellant owned a motorboat that his brother borrowed to take passengers across a lake at night.
The brother made a navigational error and crashed into an island, resulting in one death and serious injuries.
The trial judge found the brother liable as the operator and also found the appellant liable as the owner under the Canada Shipping Act.
On appeal, the Court of Appeal held that the trial judge erred in interpreting the Act as imposing statutory liability on an owner for the fault of the vessel in these circumstances.
The appeal was allowed and a new trial was ordered on the issue of the owner's liability under ordinary tort principles.
