The Courts in the Isle of Man have again upheld the right of a shipowner resident in the Isle of Man to limit their liability under the 1976 Convention on Limitation of Liability for Maritime Claims and the 1996 Protocol to the 1976 Convention (the LLMC).
The Judgment of January 7 2014 in the Baltic Highway v Others ORD 2012/78 followed the principles in The Dominator (Yacht XTC of London) v Others CLA 2008/12 (both available at www.judgments.im) and confirming that a Manx incorporated shipowner can limit their liability in the Isle of Man which enabled them to include wreck recovery costs within the limitation fund and to establish that fund by way of a letter of undertaking.
Once a shipping casualty, collision or incident has been notified to insurers and probably still being dealt with by the owner, master and crew of the vessel or vessels, matters concerning the recovery of any losses will already be set in motion. Inevitably, such losses can be huge.
When dealing with such losses it has long been a unique feature of shipping law that shipowners (and also charterers, managers and operators of a sea-going ship) are entitled, subject to certain conditions, to limit the extent of their liability in the event of a claim being made against them.
Download the full article here: Limitation of Liability Convention for Maritime Claims