Limitations Flashcards
What is the right to limit? Limitation liability
- a person who is in breach of contract or who is a tortfeasor can restrict or cap the amount of money that they might have to pay as damages to the other party or parties.
Limitation liability in relation to maritime matters in English law dates back to the 18th century.
Why was the concept introduced?
- as a matter of public policy.
- to encourage investment in shipping, then, as now, a high-risk business.
Today, limitation of liability in maritime cases is governed by?
International conventions.
- 3 different levels of limitation are now in force in countries around the world since the first Limitation Convention was agreed in 1957.
- some countries do not subscribe to any version of the limitation conventions, relying instead on their national law.
The principle of limitation of liability for claims has also been incorporated in other conventions including:
- The CLC and Fund Conventions on liability for oil pollution;
- The Athens Convention on liability for passenger claims.
The limit of liability varies as between claims for loss of life and personal injury on the one hand and damage to property on the other.
The size of the limitation amount varies with the size of the ship, as measured by its tonnage.
When can a defendant lose the right to limit their liability?
E.g. under the 1976 Limitation Convention, if it is proved that the loss resulted from the D’s personal act or omission, committed with the intent to cause such a loss or recklessly and with knowledge that such loss would probably result.
Which country has not signed or ratified either of the limitation conventions?
The USA.
A shipowner’s right to limit it liability in the USA in respect of a maritime casualty is governed by the Shipowner’s Limitation of Liability Act.
Based on the value of the ship at the END of the voyage (if damaged, in its damaged condition) and pending freight.
Where the ship is a total loss, or a constructive total loss, and no freight is at risk, the resulting limitation amount could be NIL.
Under the Shipowner’s Limitation of Liability Act (the USA), what does it say about an owner not being permitted to limit liability?
Where the casualty resulted from negligence or a condition of unseaworthiness which was within their ‘privity or knowledge’ - i.e.: which they were, or should have been, aware.
The term ‘owner’ includes any member of management acting within the scope of their duties.
Partly because, in certain cases, the limitation amount would be zero or close to zero, the courts in the USA have interpreted the ‘privity’ concept against defendants to deny them the right to limit in circumstances in which a defendant would be able to limit liability under international conventions.
LIMITATION OF TIME
A time limit in which claims must. Be brought before the courts.
Under English law, the position is governed by which Act?
The Limitation Act 1980.
What does the Limitation Act 1980 provide?
- action in tort or contract must be brought within 6 years of the date on which the cause of action arose.
The Limitation Act 1980 - where the damages claimed are in respect of personal injuries to the plaintiff or any other person, the claim must be brought within?
3 years from
- the date on which the cause of action arose; or
- the date of knowledge (if later) of the person injured
These general time limits for suit can be amended either by agreement between the parties or by specific statutory provisions.
What is the statutory time limit under English law against the carrier by sea?
One-year time limit found in the Carriage of Good by Sea Act 971, which incorporates The Hague-Visby Rules.
