Definition of ‘Admiralty liability
Limited liability of the Admiralty is used for insurance payments and legal nature; to describe the restitution obligation arising from events which occur at sea. For example, the shipping company may be responsible for the return shipping, which was lost when the ship they travel on sinks.
Breaking down the ‘Admiralty liability
Limited liability of the Admiralty involves risk, event or conduct which may be contrary to the Admiralty (Maritime) laws, thereby putting in question the jurisdiction of the Admiralty court. Maritime law is quite complex, and does not necessarily coincide with U.S. law, thereby creating many jurisdictional issues. Precedents of common law (e.g., fair and equitable settlement) is optional. In particular, the law of the sea does not require trial by jury.
A particularly unique aspect of Maritime law is the ability of a shipowner to limit its liability after a major accident.
Marine Examples Of Limited Liability
Maritime accidents and disasters commonly cause claims in the case exceeded the value of the vessel or its cargo after the incident. One of the hallmarks of American Admiralty and Maritime law limitation of liability act of 1851, which allows the shipowner to limit its liability to the value of the ship after the event, provided the incident was for the owner of “secret knowledge.”
For example, in 1912, the owners of the Titanic were successful in showing that a luxury liner sinking occurred without their knowledge and expertise, and therefore the families of the deceased passengers and the surviving passengers who lost their personal belongings are only entitled to split the $91,000 (the cost of the lifeboat, passengers and freight) – due to the limitation of liability.
Almost a century later, another notorious incident occurred when Like, the owner Deepwater Horizon, filed in the U.S. district court for the southern district of Texas to limit its liability to only its interest in the offshore drilling rig that exploded and sank in 2010. She valued the equipment at $26,764,083 – despite billions of dollars in losses and liabilities arising from the oil spill that followed the sinking.
Originally designed to encourage commercial shipping, Maritime law in many countries only recently recognized the right of a ship’s crew. In the US, it was made in 1920 leadership the Jones act gives seamen the opportunity to claim damages from the captain or the shipowner in case of injury and also gives crew members the right to a jury trial, for example, in cases of negligence.