Decision No. 328-R-2013
IN THE MATTER OF operations by Montreal, Maine & Atlantic Canada Co. and Montreal, Maine & Atlantic Railway, Ltd. – Certificate of Fitness No. 02004-3 and Order No. 2013-R-266 dated August 13, 2013 and Decision No. LET‑R‑98-2013 dated August 16, 2013.
In its Order No. 2013-R-266 dated August 13, 2013, the Canadian Transportation Agency (Agency) suspended Certificate of Fitness No. 02004-3 effective August 20, 2013 because it was not satisfied that Montreal, Maine & Atlantic Canada Co. (MMAC) and Montreal, Maine & Atlantic Railway, Ltd. (MMA) have adequate third party liability insurance coverage and the financial capacity to cover the self-insured portion for the continued operation.
Since the issuance of that Order, MMAC and MMA have filed two applications, pursuant to section 32 of the Canada Transportation Act, for a review of Order No. 2013-R-266. The first application was denied as MMAC and MMA did not provide any information to address the inadequacies of the third party liability insurance of MMAC and MMA identified in the Order.
In response to the second application, the Agency, in Decision No. LET‑R‑98‑2013, varied Order No. 2013-R-266 by amending the date of effect of the suspension of Certificate of Fitness No. 02004-3 to October 1, 2013. This variance was granted as MMAC and MMA had provided evidence that satisfied the Agency that they have insurance coverage, including per occurrence, and based on the undertaking by MMAC and MMA to meet the self-insurance portion of the policy. The variance decision was conditional on MMAC/MMA filing with the Agency by 5:00 p.m. Eastern Time on August 23, 2013 confirmation that it has secured funds for the self-insured retention portion of the policy.
On August 21, 2013, MMAC and MMA filed with the Superior Court of Québec a Motion to amend the initial order and seek a charge and security on the property of the Petitioner to secure funds for self‑insured obligation. In Decision No. LET‑R‑100‑2013, the Agency found that if the order is obtained from the Court, the Agency would be satisfied that MMAC and MMA meet the condition set out in Decision No. LET-R-98-2013.
The Agency has now been advised that MMAC and MMA have obtained an order from the Court. Based on the order of the Superior Court of Québec dated August 23, 2013, the Agency is satisfied that MMAC and MMA meet the condition set out in Decision No. LET‑R-98-2013. Accordingly, as set out in that Decision, the suspension of Certificate of Fitness No. 02004-3 comes into effect on October 1, 2013.
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