Cosmos 954 Incident (Canada v Union of Soviet Socialist Republics)

Facts

• Cosmos 954, a Soviet reconnaissance satellite powered by a nuclear reactor, malfunctioned in orbit
• In January 1978 the satellite re-entered the atmosphere and disintegrated over the Northwest Territories of Canada
• Radioactive debris from the nuclear core scattered over approximately 124,000 square kilometres
• Canada mounted Operation Morning Light, a large-scale clean-up operation costing millions
• In January 1979, Canada submitted a formal claim to the USSR for C$6 million in compensation
• Canada invoked Article II of the Convention on International Liability for Damage Caused by Space Objects (Liability Convention 1972)

Issue

1. Whether the USSR was liable to Canada under the Liability Convention 1972 for damage caused by radioactive debris from Cosmos 954, and whether fault needed to be established.

Held

• The matter was settled diplomatically in April 1981 for C$3 million
• The settlement confirmed that Article II absolute liability was not contested
• Under Article II, a launching state is absolutely liable for damage caused by its space object on the surface of the earth
• No proof of fault, negligence, or intent is required
• The claim is a state-to-state claim only; no individual right of action exists under the Convention

Ratio Decidendi

Article II of the Liability Convention 1972 establishes absolute (strict) liability: a launching state shall be absolutely liable to pay compensation for damage caused by its space object on the surface of the earth or to aircraft in flight. The claimant state need only prove that damage occurred and was caused by the identified space object. This contrasts with Article III, which applies fault-based liability for damage caused in outer space between space objects.