Limited Liability

Here is an article from CNA re: Owner and Manager attempting to limit their liability for the M/V Dali incident:


We all knew that was coming. I’m sure the general public will be outraged at the “low” cap due to the expected costs. That number isn’t even really enough for the wrongful death suits that should be coming soon.

This Gard material shows how Liability limitation worked in case of MSC Flamina .Owner v/s Charterer

Limitation of liability lessons from the msc flaminia - Gard

Limitation of liability is usually denied, especially if shoreside managers were consulted and they advised or pressured the Master to depart with defects.

A bit off the Limited Liability Act topic, but

Watch for the P&I Club to try to deny coverage if the Master and Engineer are charged with criminal acts.

Insurance generally covers negligence.

Insurance generally does not cover intentional or criminal acts (taking the decision to sail with serious unreported defects).

Insurance generally may not cover “gross negligence “ or “recklessness.”

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Interesting comment from Splash247 " Baltimore takes Dali owner and manager to court"