Admiralty Lawyers

The Limitation of Liability Act

Admiralty law is considered one of the oldest and most unique forms of law in the United States. Perhaps one of the most unique laws within general maritime law is the option of the ship owner to limit their liability to the value of the ship after an accident has occurred. The Limitation of Liability Act was enacted by Congress in 1851 and is still used in admiralty law cases today.

According to the act, ship owners are able to limit their liability if the loss or casualty occurred without the “privity or knowledge” of the owner. While this claim was more reasonable in the 1800s and early 1900s, the modern age of communication makes this law difficult for ship owners to utilize in recent trials. For this reason, some argue that the act is no longer needed or applicable for many modern cases.

A good example of how this law can still be used is a boat owner who loans his boat to another person or persons. The law states that if an accident occurs while the boat is being operated by non-owners, the owner can limit their liability by using the Limitation Act.

As with any legal proceeding, there is a statute of limitations for this law. The ship owner must take action within six months of receiving written notification that a claim has been filed against them.

Admiralty law can be very confusing at times. If you or a loved one is facing an admiralty lawsuit, it is in your best interest to speak with an admiralty attorney. Experienced admiralty lawyers have a thorough understanding of the law and will be able to organize an effective case on your behalf.

Contact the admiralty lawyers of Williams Kherkher today to learn more about your legal rights. Call 866-950-9000.