Nova Scotia seafood processor appeals ruling in $10-million lobster lawsuit

Independent Fisheries Ltd. and its president, Xiaoming (Mark) Mao, are appealing a January ruling in a $10-million lawsuit over allegedly illegal lobster. The Nova Scotia seafood processor says it needs more detailed allegations from the Unified Fisheries Conservation Alliance before it can properly prepare a defence.

The alliance, which represents thousands of independent multi-species commercial fishers and associations across the Maritimes, sued Mao and Independent Fisheries in November 2024. It also named the owners and operators of Shag Harbour, N.S.-based Fisher Direct Ltd. and Seawell Holdings Ltd. as defendants.

The alliance alleges an investigation found the defendants participated in a conspiracy to transport, process and sell illegally caught lobster. It says the alleged scheme diminished lobster stocks in St. Mary’s Bay, a fishing ground in southwestern Nova Scotia relied upon by its members, causing $10 million in damages.

Independent Fisheries and Mao sought an order requiring the alliance to identify all allegedly harmed lobster harvesters and alleged conspirators, as well as dates, times and facts supporting Mao’s liability. They argued that the claims were too vague and that the information was needed to prepare their defence.

A judge dismissed that motion in January, finding the defendants would have disclosure and discovery opportunities as the case proceeded. The judge said it would be unreasonable to require the alliance to plead material facts likely known exclusively to the defendants. Mao and Independent Fisheries now argue the judge erred in law and principle and caused a “patent injustice.” A hearing was held last week, but no ruling has been issued.

Mao said by email that Independent Fisheries employs more than 80 people, is regularly inspected and fully complies with provincial and federal regulations. He said the company strongly denies wrongdoing and is optimistic the Court of Appeal will find the claims do not meet legal requirements for lawsuits.

The alliance says in court submissions that Mao and International Fisheries are using repeated demands for more information to delay the litigation. It notes that no defence has been filed as the case nears its second anniversary. Its lawyer, Michel Samson, called on Mao and Independent Fisheries to file a defence so the alliance can present its evidence. Representatives for Fisher Direct and Seawell did not respond to a request for comment.

The alliance is also pursuing an appeal in a separate St. Mary’s Bay lobster case. Last month, the Nova Scotia Supreme Court dismissed its challenge to Sipekne’katik First Nation members fishing lobster in the area out of season without commercial licences, ruling the alliance lacked standing to pursue a case involving Indigenous fishing rights.