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| Limitation of Liability in Maritime Lawsuits |
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The Law of Limitation of Liability
The law is codified under federal law as 46 U.S.C. §§ 181 to
196 (United States Code) and states that a shipowner may
limit liability for losses from negligence or unseaworthiness
arising without his privity or knowledge, to the value of the
vessel or his interest in the vessel and freights pending.
What this means is that lawsuits and claims for wrongful
death, personal injury and property damage could be limited
to the residual value of a vessel if the owner did not have
knowledge or participation in the negligence or
unseaworthiness that caused the accident.
The loss of the SS Morro Castle in 1934 led to a major
change in limitation law. Until then, the law held that a vessel
owner could limit losses to the post-accident value of the
vessel, as described above. In 1912, with the Titanic, that
amount was about $95,000 for a string of lifeboats retrieved
from the frigid New Foundland waters. However, the public
was not going to let that happen again after the Morro Castle,
which was consumed by flames in September of 1934 with a
loss of 137 lives. When the owners succeeded in limiting
their liability to the $20,000 residual value of the charred
remains of the ship, there was enough anger from the public
to lead to Loss of Life Amendments. These legal
amendments stated that if the residual value of the vessel
was insufficient to satisfy the resulting wrongful death and
bodily injury lawsuits, a limitation fund of $60 per ton would
be established. This amount was again increased in 1984 to
$420 per ton.
The law is codified under federal law as 46 U.S.C. §§ 181 to
196 (United States Code) and states that a shipowner may
limit liability for losses from negligence or unseaworthiness
arising without his privity or knowledge, to the value of the
vessel or his interest in the vessel and freights pending.
What this means is that lawsuits and claims for wrongful
death, personal injury and property damage could be limited
to the residual value of a vessel if the owner did not have
knowledge or participation in the negligence or
unseaworthiness that caused the accident.
The loss of the SS Morro Castle in 1934 led to a major
change in limitation law. Until then, the law held that a vessel
owner could limit losses to the post-accident value of the
vessel, as described above. In 1912, with the Titanic, that
amount was about $95,000 for a string of lifeboats retrieved
from the frigid New Foundland waters. However, the public
was not going to let that happen again after the Morro Castle,
which was consumed by flames in September of 1934 with a
loss of 137 lives. When the owners succeeded in limiting
their liability to the $20,000 residual value of the charred
remains of the ship, there was enough anger from the public
to lead to Loss of Life Amendments. These legal
amendments stated that if the residual value of the vessel
was insufficient to satisfy the resulting wrongful death and
bodily injury lawsuits, a limitation fund of $60 per ton would
be established. This amount was again increased in 1984 to
$420 per ton.
In Maritime Law , there is a legal concept known as limitation of liability. Basically, it
works like this. A vessel owner can limit the payout to the plaintiffs suing him for wrongful
death, personal injury and property damage in an accident if he did not have a hand in the
factors causing the accident. Back to Maritime Law page , dealing with general law topics.
works like this. A vessel owner can limit the payout to the plaintiffs suing him for wrongful
death, personal injury and property damage in an accident if he did not have a hand in the
factors causing the accident. Back to Maritime Law page , dealing with general law topics.
These lawsuits included It has been invoked in a number of large scale wrongful death
and personal injury lawsuits, namely the RMS Titanic, SS Morro Castle and the Staten
Island Ferry Andrew Barberi.
and personal injury lawsuits, namely the RMS Titanic, SS Morro Castle and the Staten
Island Ferry Andrew Barberi.
| Limitation Denied.... When the City of New York attempted to limit its payout on the wrongful death and personal injury lawsuits following the accident with the Staten Island Ferry Andrew Barberi (11 people were killed in the catastrophic accident and over 60 were injured), it did not succeed. In federal court, the judge did not allow limitation of the plaintiff’s total awards to be capped at $14.4 million, the post- accident value of the ferry. This was largely due to findings made by the National Transportation Safety Administration in its investigation of the accident. |
| The photo above shows the horrific manner in which the steel plating of the Staten Island Ferry was torn open by the concrete and steel of the maintenance pier at St. George Terminal. The vessel is estimated to have struck the pier at approximately 17 knots. |
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united states coast guard photo
Job Alert Working with legal issues... see Contract Specialist with the U.S.C.G., involving
purchasing vessels and goods. Limitation of liability is a legal tactic used in accident or
injury lawsuits. Under U.S. law, the statute is known as the Limitation of Shipowners’
Liability Act of 1851. It has been invoked in wrongful death and personal injury lawsuits.
purchasing vessels and goods. Limitation of liability is a legal tactic used in accident or
injury lawsuits. Under U.S. law, the statute is known as the Limitation of Shipowners’
Liability Act of 1851. It has been invoked in wrongful death and personal injury lawsuits.