OWNERS LIABILITY

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OWNERS LIABILITY

• FOURTH LECTURE
• LIABILITY FOR COLLISIONS

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Chapter 11 Liability for Collisions

• Outline
• 1. Rules of the Road / COLREG 1972
• 2. Assessment of fault
• 3. Compensation and liability
• a) apportionment of liability, and
• b) liability for
• i. cargo damage, and
• ii. personal injury

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1. COLREG 1972

• Regulates traffic at sea.
• Included in Norwegian law by regulation ito MC
  section 506
• Rules on
• a) steering and sailing,
• b) conduct of vessels in sight of one another,
  and
• c) conduct of vessels in restricted visibility.

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(No Transcript)
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2. Assessment of fault

• Little guidance in chapter 8
• Objective assessment, taking into account
• COLREG, and
• the Ship Safety Act.

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3. Compensation and liabilitya) apportionment of
liability

• Collision
• One ship at fault section 161, first paragraph
• Both-to-blame section 161, second paragraph
• a) Proportion, unless
• b) cannot determine
• Example equally to blame

Action Alpha Damage 200
Wan Hai Damage 400
(200 400) 2 300
Carries 300 of own loss
Carries own loss and 100 of Wan Hais loss
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3. Compensation and liabilitya) apportionment of
liability (cont.)

• Single or cross liability
• a) Global limitation single liability
  principle
• b) NMIP cross liability principle

Single liability principle
Cross liability principle
Proportion loss before set off. This is the
basis for the settlement of the Claim (and NOT
apportionment of liability)
Add amounts and divide. Excess is subject to
Limitation.
Action Alpha (200400) 2 300 Set off 300 -
200 100 Subject to limitation 100
Action Alpha 200 2 100 Wan Hai 400 2
200 Settlement AA 100 WH 200
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3. Compensation and liabilityb) liability fori.
cargo damage and ii. Personal injury

• Is the Action Alpha liable for damage/loss of the
  Wan Hais containers?
• - section 161, third paragraph pro rata
  liability
• - American position joint and several liability
• Is the Action Alpha liable for injury to/loss of
  life of the Wan Hais passengers?
• - section 161, third paragraph joint and
  several liability
• - compensation from the Wan Hai if (section 161,
  fourth paragraph)
• a) paid more than its share
• b) subject to
• i. limitation of liability,
• ii. valid contractual reservation, however
  subject to mandatory liability rules.

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Example Cargo damage

• Action Alphas blame 1/3
• Wan Hais blame 2/3 (eg in breach of traffic
  separation scheme) Cargo damage 300
• Liability of the Action Alpha ito MC chapter 8
  pro rata liability
• Cargo owner can claim 1/3 of 300 100 from the
  Action Alpha
• Cargo owner cannot claim from the Wan Hai due to
  contract or MC s 276.
• American rules joint and several liability
• Cargo owner cannot due to contract or MC s 276
  claim from the Wan Hai.
• Cargo owner can claim 300 from the Action Alpha.
• The Action Alpha can claim 2/3 of 300 200 from
  the Wan Hai (which cannot avail itself of the
  exemption rules).
• Wan Hai must pay 200 regardless of contract.

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Research aid

• The International Maritime Organisation (IMO)
  website (good for most information relating to
  conventions except for conventions texts
  themselves)
• www.imo.org
• See also the International Maritime Committee
  Comité Maritime International (CMI)
• www.comitemaritime.org
• For convention texts (not always updated), try
• www.admiraltylawguide.com
• For general maritime law information, look at
• Prof William Tetley www.mcgill.ca/maritimelaw
  (most of his articles and books can be
  downloaded)