Doctrine of Limited Liability.docx

Doctrine of Limited Liability (Hypothecary Rule - Limited to the vessel itself a. Liability of Ship Owners and Shipping Agents - Limited to the amount of interest in said vessels. - Interest extends to: 1. Vessel itself 2. Equipments 3. Freightage 4. Insurance proceeds b. Exceptions to limited liability 1. Claims under workmen’s compensation 2. Injury or damage due to shipowner or to the concurring negligence of the shipowner and captain 3. The vessel is insured 4. Expenses for repair on vessel completed before loss 5. In case there is no total loss and the vessel is not abandoned 6. Collision between two negligent vessel. Accidents and Commerce a. Averages

Damages

in

Maritime

 An extraordinary or accidental expense incurred during the voyage in order to preserve the cargo, vessel or both, and all damages or deterioration suffered by the vessel from departure to the port of destination, and to the cargo from the port of loading to the port of consignment.