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UNIVERSITETET

I OSLO

OWNER’S LIABILITY

SECOND LECTURE

LIABILITY FOR COLLISIONS

© DET JURIDISKE FAKULTET

UNIVERSITETET

I OSLO

Chapter 11 ’Liability for Collisions’

Outline:

1. ’Rules of the Road’ / COLREG 1972

2. Assessment of fault

3. Compensation and liability a) apportionment of liability, and b) liability for i. cargo damage, and ii. personal injury

© DET JURIDISKE FAKULTET

UNIVERSITETET

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1. COLREG 1972

1. Regulates traffic at sea.

2. Included in Norwegian law by regulation ito MC section 506

3. Rules on a) steering and sailing, b) conduct of vessels in sight of one another, and c) conduct of vessels in restricted visibility.

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2. Assessment of fault

1. Little guidance in chapter 8

2. Objective assessment, taking into account a) COLREG, and b) the Ship Safety Act.

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3. Compensation and liability a) apportionment of liability

Collision:

One ship at fault: section 161, first paragraph

Both-to-blame: section 161, second paragraph a) Proportion, unless b) cannot determine (accidental collisions)

Example ‘equally to blame’:

Action Alpha

Damage: 200

Carries own loss and

100 of Wan Hai’s loss

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(200 + 400) : 2 = 300

Wan Hai

Damage: 400

Carries 300 of own loss

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3. Compensation and liability a) apportionment of liability (cont.)

Single or cross liability: a) Global limitation = single liability principle b) NMIP = cross liability principle

Single liability principle:

Add amounts and divide.

Excess is subject to

Limitation.

Action Alpha

(200+400) : 2 = 300

Set off: 300 - 200 = 100

Subject to limitation: 100

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Cross liability principle:

Proportion loss before set off. This is the basis for the settlement of the

Claim

(and NOT apportionment of liability)

Action Alpha: 200 : 2 = 100

Wan Hai: 400 : 2 = 200

Settlement AA: 100 WH: 200

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3. Compensation and liability b) liability for i. cargo damage and ii. Personal injury

Is the Action Alpha liable for damage/loss of the Wan Hai’s containers?

- section 161, third paragraph: pro rata liability

- American position: joint and several liability

Is the Action Alpha liable for injury to/loss of life of the Wan Hai’s passengers?

- section 161, third paragraph: joint and several liability

- compensation from the Wan Hai if (section 161, fourth paragraph): a) paid more than its share b) subject to i. limitation of liability, ii. valid contractual reservation, however subject to mandatory liability rules.

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UNIVERSITETET

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Example: Cargo damage

Action Alpha’s blame 1/3

Wan Hai’s blame 2/3

(eg in breach of traffic separation scheme)

: Cargo damage 300

Liability of the Action Alpha ito MC chapter 8 = pro rata liability

Cargo owner can claim 1/3 of 300 = 100 from the Action Alpha

Cargo owner cannot claim from the Wan Hai due to contract or MC s 276.

American rules = joint and several liability

Cargo owner cannot due to contract or MC s 276 claim from the Wan Hai.

Cargo owner can claim 300 from the Action Alpha.

The Action Alpha can claim 2/3 of 300 = 200 from the Wan Hai (which cannot avail itself of the exemption rules).

Wan Hai must pay 200 regardless of contract.

© DET JURIDISKE FAKULTET

UNIVERSITETET

I OSLO

Research aid

The International Maritime Organisation (IMO) website (good for most information relating to conventions except for conventions texts themselves): www.imo.org

See also the International Maritime Committee: Comité Maritime International (CMI): www.comitemaritime.org

For convention texts (not always updated), try: www.admiraltylawguide.com

For general maritime law information, look at:

Prof William Tetley: www.mcgill.ca/maritimelaw (most of his articles and books can be downloaded)

Prof John Hare: www.uctshiplaw.com

© DET JURIDISKE FAKULTET

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