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DOCTRINE OF LIMITED LIABILITY

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1DOCTRINE OF LIMITED LIABILITY Empty DOCTRINE OF LIMITED LIABILITY Tue Sep 23, 2008 12:46 pm

barrister

barrister
Reclusion Perpetua

liability of ship owner is confined to that which he is entitled to abandon – “the vessel with all her equipments and the freight he may have earned during the voyage” – and if they are lost, it suffices for his discharge. [No ship, no liability]

Exceptions:
1. Vessel is not abandoned (when the ship owner does acts inconsistent with abandonment e.g. salvage)
2. Ship owner agent/ agent allows his vessel to embark in an unseaworthy condition.
3. Claims under workmen’s compensation
4. Injury/damage due to ship owner’s fault
5. Vessel is insured
6. In case the voyage is not maritime but only in river or gulf
7. In case of the expenses for equipping, repairing or provisioning the vessel

NOTE: The doctrine also applies for claims due to death or injuries to passengers, aside from claims for
goods. In abandoning the vessel, there is no procedure to be followed. There is neither a prescriptive period within which the ship owner can make the abandonment. He may do so for so long as he is not estopped from invoking the same or do acts inconsistent with abandonment.

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