When Vessel Owners Try to Limit Compensation After a Maritime Accident
After a serious maritime accident, injured workers and families often expect that the responsible vessel owner will be held fully accountable. However, vessel owners sometimes rely on a federal law known as the Limitation of Liability Act to reduce the amount they must pay after an accident.
People often come to us and ask whether a boat owner can really limit their responsibility after a serious injury or fatal maritime accident. The answer is that vessel owners may try to do this under certain circumstances, but these claims are not always successful.
In many cases, injured workers can challenge a vessel owner’s attempt to limit liability.
What Is the Limitation of Liability Act?
The Limitation of Liability Act is a federal maritime law that allows a vessel owner to attempt to limit financial responsibility after an accident involving a vessel.
If the owner successfully invokes the law, their liability may be limited to the value of the vessel after the accident, along with any pending freight.
This law applies to many types of watercraft, including:
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Commercial ships
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Tugboats and tankers
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Passenger vessels and ferries
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Fishing boats
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Yachts and recreational boats
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Jet skis and other small vessels
Because the law focuses on the value of the vessel after an accident, the total amount available to injured victims can be dramatically reduced.
A Famous Example: The Titanic Case
One of the most well-known examples of the Limitation of Liability Act involved the sinking of the Titanic.
After the disaster, claims against the vessel’s owner totaled millions of dollars. However, the United States Supreme Court ruled that the ship’s owner could limit liability to the value of the remaining lifeboats after the sinking.
The value of those lifeboats was about $92,000.
This meant that the total amount available to divide among all victims and families was limited to that amount, even though the damages suffered were far greater.
Cases like this show how the Limitation of Liability Act can significantly affect the compensation available after a maritime disaster.
Does the Limitation of Liability Act Apply to Every Maritime Claim?
The law does not apply to every type of maritime claim.
For example, the Limitation of Liability Act generally does not apply to certain claims involving:
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Seamen’s wages
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Maintenance and cure obligations owed to injured seamen
However, the law may apply to many other claims involving maritime accidents, including collisions, vessel accidents, and injuries that occur on navigable waters.
Because of this, injured workers or passengers may suddenly face a legal filing from the vessel owner attempting to reduce the value of the claim.
Can a Vessel Owner Always Limit Liability?
No. Vessel owners can only limit liability if they prove that the accident occurred without their privity or knowledge.
You may be wondering what that means. In simple terms, it means the owner must show that they did not know about the dangerous condition that caused the accident and had no reasonable way to prevent it.
If the accident was caused by conditions the owner knew about, or should have known about, the attempt to limit liability may fail.
Situations that may defeat a limitation claim include:
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Unsafe or unseaworthy vessel conditions
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Poor maintenance of the vessel
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Negligent actions by the vessel owner or management
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Failure to properly train the crew
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Ignoring known safety hazards
When these issues are present, injured victims may be able to challenge the vessel owner’s attempt to limit liability.
Investigating the Cause of the Maritime Accident
Defeating a Limitation of Liability claim often requires a detailed investigation into how the accident happened.
This may involve reviewing maintenance records, examining the vessel, interviewing crew members, and consulting maritime specialists.
In one case our firm handled involving the sinking of a commercial fishing vessel, the defense claimed that the boat had been struck by another vessel and split in half before sinking.
To investigate, our legal team worked with a company operating an underwater ROV camera system. The equipment was used to locate the vessel on the ocean floor and document its condition.
The footage showed that the vessel was fully intact, not split in half as claimed. The photographs contradicted the defense theory, and the case moved toward settlement soon afterward.
Thorough investigation can play a critical role in challenging limitation claims.
What Injured Maritime Workers Should Know
People injured in maritime accidents often face confusing legal filings and deadlines after the vessel owner files a petition to limit liability.
In many cases, injured workers or families may still have the right to pursue full compensation.
Questions we often hear include:
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Can a boat owner avoid paying for my injuries?
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What happens if the vessel owner files a limitation action?
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Can injured seamen challenge the Limitation of Liability Act?
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What should I do if I receive court papers after a maritime accident?
The answers depend on the details of the accident and the conditions aboard the vessel.
Speak With Latti Associates LLC About a Limitation of Liability Case
When a vessel owner files a petition under the Limitation of Liability Act, injured workers and families may feel as though their claim has been taken away. In reality, many of these petitions can be challenged with the right investigation and legal strategy.
Latti Associates LLC focuses on maritime injury cases and represents seamen, fishermen, and other maritime workers in complex maritime litigation nationwide.
If you were injured in a maritime accident and the vessel owner is attempting to limit liability, contact Latti Associates LLC to discuss your situation and learn what legal options may be available.