Puneet Varma (Editor)

Limitation of Liability Act of 1851

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In United States maritime law, the Limitation of Liability Act of 1851 (46 U.S.C. app. § 183 (1984)) historically [1], or (46 U.S.C. §§ 30501 - 30512) since Feb. 1, 2010 [2] states that the owner of a vessel may limit damage claims to the value of the vessel at the end of the voyage plus "pending freight," as long as the owner can prove it lacked knowledge of the problem beforehand. This Act was the subject of a 2001 United States Supreme Court case in Lewis v. Lewis & Clark Marine, Inc..

Historically the statute has been invoked to limit the liability of certain parties in the sinking of the RMS Titanic and the Deepwater Horizon oil spill.

Recent developments

Deepwater Horizon Survivors' Fairness Act S. 183 (2011-2012) is a bill introduced in Senate in the 112th Congress. The bill seeks to amend the Limitation of Liability Act to make an exception for personal injuries and wrongful death claims related to the explosion and destruction of the Deepwater Horizon oil drilling platform. It has been referred to the Committee on Commerce, Science, and Transportation. The Congressional Budget Office has provided a cost estimate.

References

Limitation of Liability Act of 1851 Wikipedia
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