A Halifax seafood processor and its president are appealing a ruling after they argued a $10-million lobster conspiracy lawsuit against them is too vague to defend.
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A Nova Scotia seafood processor is seeking more specific allegations in a lawsuit accusing the company and its president of participating in an illegal lobster-buying scheme, arguing it cannot prepare a defence without names and detailed particulars.
The case centres on Independent Fisheries Ltd. and its president, Xiaoming (Mark) Mao, who are named as defendants in a $10-million action brought by the Unified Fisheries Conservation Alliance. The alliance, which it is described as representing thousands of independent, multi-species commercial fishers and associations across the Maritimes, filed the lawsuit in November 2024.
In court materials cited in reporting, Independent Fisheries and Mao say they are being asked to mount a defence “with no understanding of the (alleged) facts.” They argue the alliance’s pleadings do not provide sufficient detail to identify who was involved and when the alleged conduct occurred.
The lawsuit also names the owners and operators of two additional companies: Fisher Direct Ltd. and Seawell Holdings Ltd., both described as being based in Shag Harbour, N.S. The alliance alleges its investigation found the defendants took part in a conspiracy to transport, process and sell lobster that it says was illegally caught.
According to the alliance’s claims, the alleged scheme has diminished lobster stocks in St. Mary’s Bay, described as a rich fishing ground in southwestern Nova Scotia that members rely on, and has caused damages estimated at $10 million.
Independent Fisheries and Mao asked the court to order the alliance to disclose the identities of all lobster harvesters allegedly harmed, as well as the names of all alleged conspirators, the dates and times of their alleged acts, and the factual basis supporting Mao’s liability.
A judge dismissed that motion in January, with the court stating that Mao and his company would have further opportunities for disclosure and discovery as the case moved forward. The judge also said it would be unreasonable to require the alliance to include material facts that are likely to be exclusively within the defendants’ knowledge.
The company and Mao are now appealing the January decision, arguing the judge erred in law and principle and “inflicted a patent injustice,” according to the reporting.
A court hearing on the appeal took place last week, but no ruling had been reported at the time of publication. The matter is framed as part of the ongoing dispute over the level of detail required before a defence can be properly prepared.
In an email, Mao said Independent Fisheries employs more than 80 people, is regularly inspected, and is in full compliance with provincial and federal regulations. He also said it was “deeply disappointing” that the company’s Chinese Canadian ownership structure had been called into question, and said they deny wrongdoing and expect the Court of Appeal to agree the claims do not meet legal requirements for lawsuits.
The alliance, through submissions summarized in the report, argues that the processor and its president are trying to delay the litigation through repeated requests for more information. It said no defence has been filed as the case approaches its two-year anniversary, and that the additional details sought by the defendants are not necessary at this stage. The report also notes that a lawyer representing the alliance urged the defendants to file a defence so evidence can be presented in court.
The lobster lawsuit is not the only matter the alliance has brought involving St. Mary’s Bay. 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. The court later dismissed that case last month on standing grounds, and the alliance said it plans to appeal.
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