Canada

N.S. court orders more detailed allegations in $10M illegal lobster lawsuit

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Fishing boats prepare for the start of the lobster fishery in Saulnierville, N.S. on Monday, Aug. 16, 2021. THE CANADIAN PRESS/Andrew Vaughan

A Nova Scotia court has ordered a commercial fishing group seeking $10 million in damages related to alleged illegal lobster buying to name names and provide more details about its allegations.

The Unified Fisheries Conservation Alliance, a group representing thousands of independent, multi-species commercial fishers and associations across the Maritimes, filed a lawsuit against Independent Fisheries Ltd. and its president Xiaoming (Mark) Mao in November 2024.

The suit also names the owners and operators of Fisher Direct Ltd. and Seawell Holdings Ltd., both based in Shag Harbour, N.S., as defendants.

The alliance alleged that it had conducted an investigation revealing the defendants participated in a conspiracy to transport, process and sell illegally caught lobster. It claimed the alleged scheme has diminished lobster stocks in St. Marys Bay, a rich fishing ground in southwestern Nova Scotia that its members rely on, and caused them $10 million in damages.

Lockeport, N.S.,-based Independent Fisheries and Mao argued the alliance’s claims were too vague and asked the court to compel it to disclose the identities of all lobster harvesters who were allegedly harmed, as well as the names of all alleged conspirators, dates and times of their alleged acts and facts supporting Mao’s liability. They argued they needed the information to properly prepare their defence.

A judge dismissed the motion in January saying Mao and his company would have opportunities for disclosure and discovery examinations as the case moved ahead.

The Nova Scotia Court of Appeal overturned most of that decision in an Oct. 15 ruling, saying the Alliance’s claims are too vague and prevent the defendants from understanding exactly what is being alleged.

“Are they facing one conspiracy or more?” wrote Justice Cindy A. Bourgeois on behalf of the three justices who heard the case. “If multiple conspiracies, are the alleged co-conspirators the same or different in each? How can the appellants attempt to establish the lobsters in question were legally caught, and therefore legally transported, bought and processed, if the identity of the fishers is not plead?”

The court gave the alliance 30 days to provide the particulars of its claim. It said the alliance must provide the names of all harvesters affected by the alleged illegal lobster buying but would not have to name every member of the organization.

An Independent Fisheries representative said in an email that it’s pleased the alliance must now provide facts the company first requested in 2024. A representative for the alliance said the group is fine with the ruling and will provide the requested information.

Independent Fisheries was one of two companies the Nova Scotia government accused of buying illegally caught lobsters in a separate proceeding earlier this month. The company has denied any wrongdoing, saying the firm operates with a robust due diligence process that ensures lobster is sourced in-season from legal licence holders, and they require proof of origin for every transaction.

Meanwhile, the alliance is pursing another case involving St. Marys Bay lobster.

In 2024 the group asked the Nova Scotia Supreme Court to rule that members of the Sipekne’katik First Nation do not have a treaty right to fish lobster in the area out of season without commercial licences. Sipekne’katik first announced plans to launch its own self-regulated fishery in 2020.

The alliance claimed in court documents that Sipekne’katik’s commercial fishery was unauthorized and unlawful. It alleged the fishery had a detrimental effect on lobster stocks, claiming some fishers were forced to sell their licences or fish in other areas.

It wanted the judge to declare that the federal Fisheries Act and regulations are constitutionally valid and do not violate any treaty rights held by Sipekne’katik. The case was dismissed in August with the court ruling the alliance did not have standing to pursue a case involving Indigenous fishing rights.

The group said it plans to appeal that decision.

This report by The Canadian Press was first published Oct. 31, 2026.

— By Devin Stevens in Halifax.