Chapter 15: Limitation of Liability
| Library | Merchant Shipping Legislation |
| Pages | 591-696 |
| Author | Aengus R. M. Fogarty |
Unless specified otherwise, all provisions reproduced in this chapter are from the Merchant Shipping Act 1995.
This chapter deals with the liability of shipowners and others for maritime claims. This chapter is divided into four parts.
Part A relates to the carriage of passengers and their luggage by sea. It contains sections 183 and 184 of, and Schedule 6 to, the Merchant Shipping Act 1995, which re-enact corresponding provisions formerly contained in sections 14–16 of, and Schedule 3 to, the Merchant Shipping Act 1979. These provisions implemented the Convention relating to the Carriage of Passengers and their Luggage by Sea, 1974 (the Athens Convention).
The 2002 Protocol to the 1974 Convention was implemented in the United Kingdom by the Merchant Shipping (Convention relating to the Carriage of Passengers and Their Luggage by Sea) Order 2014, SI 2014/1361.
Part B relates to the limitation of liability for maritime claims. It contains sections 185 and 186 of, and Schedule 7 to, the Merchant Shipping Act 1995, which re-enact corresponding provisions formerly contained in sections 17–19 of, and Schedule 4 to, the Merchant Shipping Act 1979. These provisions implemented the Convention on Limitation of Liability for Maritime Claims, 1976.
The 1996 Protocol to the 1976 Convention was implemented in the United Kingdom by the Merchant Shipping and Maritime Security Act 1997, section 15, with effect as from 17 July 1997. The 1996 Protocol was also implemented in the United Kingdom by the Merchant Shipping (Convention on Limitation of Liability for Maritime Claims) (Amendment) Order 1998, SI 1998/1258.
Article 1 of the Merchant Shipping (Convention on Limitation of Liability for Maritime Claims) (Amendment) Order 1998, SI 1998/1258 provides that the Order shall come into force on the date, to be notified in the London, Edinburgh and Belfast Gazettes, on which the Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims 1976 enters into force in respect of the United Kingdom. The 1996 Protocol entered into force in the United Kingdom and internationally on 13 May 2004.
Part C contains provisions dealing with liability in cases of mutual fault and time limits. It contains section 187–190 of the Merchant Shipping Act 1995. These provisions are derived from corresponding provisions formerly contained in the Maritime Conventions Act 1911. The Maritime Conventions Act 1911 implemented the International Convention for the Unification of Certain Rules of the Law with Respect to Collisions and the International Convention for the Unification of Certain Rules of the Law Relating to Assistance and Salvage at Sea signed in Brussels on 23 September 1910. The latter Convention has since been replaced by the International Convention on Salvage, 1989, which Convention is implemented by section 224 of, and Schedule 11 to, the 1995 Act. Section 187 relates to the apportionment of liability in cases of mutual fault and section 188 imposes joint and several liability in cases of personal injury or loss of life in such cases. Section 189 provides for the right of contribution in such cases. Section 190 imposes a two-year time limit in respect of proceedings to enforce any claim or lien against a ship or her owners in respect of damage or loss caused by the fault of that ship to another ship or for damages for loss of life or personal injury caused by the fault of that ship to any person on board that ship on board another ship.
Part D (containing sections 191 and 192 of the 1995 Act) relates to the limitation of liability of statutory waterway authorities including harbour, conservancy, dock and canal authorities as well as to Crown ships. Section 191 contains provisions corresponding to provisions formerly contained in section 2(1) of the Merchant Shipping (Liability of Shipowners and Others) Act 1958, as amended by paragraph 1 of Schedule 5 to the Merchant Shipping Act 1979. These provisions give such authorities the right to limit their liability in respect of claims to an amount based on the tonnage of the largest ship to have visited the authority’s area within the last five years. Section 192 extends sections 185–190 of the Merchant Shipping Act 1995 to Her Majesty’s ships as they apply in relation to other ships and applies to section 191 to the Crown in its capacity as an authority or person specified in section 191(1). Section 192 contains provisions formerly contained in sections 5–7 and 30(1) of the Crown Proceedings Act 1947, as amended by paragraph 3 of Schedule 5 to the Merchant Shipping Act 1979.
(2) The provisions of Part II of that Schedule shall have effect in connection with the Convention and subsection (1) above shall have effect subject to the provisions of that Part.
[(2A) But –
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subsection (1) does not give the force of law in the United Kingdom to provisions to the extent that they apply to cases in which EC Regulation No 392/2009 applies; and
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the provisions of Part 2 of that Schedule do not have effect in such cases.]
(3) If it appears to Her Majesty in Council that there is a conflict between the provisions of this section or of Part I or II of Schedule 6 and any provisions relating to the carriage of passengers or luggage for reward by land, sea or air in –
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any convention which has been signed or ratified by or on behalf of the government of the United Kingdom before 4th April 1979 (excluding the Convention); or
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any enactment of the Parliament of the United Kingdom giving effect to such a convention,
(4) If it appears to Her Majesty in Council that the government of the United Kingdom has agreed to any revision of the Convention She may by Order in Council make such modifications of Parts I and II of Schedule 6 as She considers appropriate in consequence of the revision.
(5) Nothing in subsection (1) [, (2) or (2A)] above or in any modification made by virtue of [the subsection] above shall affect any rights or liabilities arising out of an occurrence which took place before the day on which the subsection above, or as the case may be, the modification, comes into force.
(6) This section shall bind the Crown, and any Order in Council made by virtue of this section may provide that the Order or specified provisions of it shall bind the Crown.
(7) A draft of an Order in Council proposed to be made under subsection (3) or (4) above shall not be submitted to Her Majesty in Council unless the draft has been approved by a resolution of each House of Parliament.
[(8) In this section “EC Regulation No 392/2009” means Regulation (EC) No 329/2009 of the European Parliament and of the Council of 23 April 2009 on the liability of carriers of passengers by sea in the event of accidents.]
15.4 Notes
Subsections (2A) and (8) were inserted, and words in subsection (5) were substituted, by the Merchant Shipping (Carriage of Passengers by Sea) Regulations 2012, SI 2012/3152, regulation 14.
15.5 Commentary
The 1974 Athens Convention was amended by the 2002 Protocol, which Protocol entered into force on 23 April 2014. The 2002 Protocol was implemented in the United Kingdom (in so far as it applies to UK ships of Class A and B engaged on domestic voyages) by the Merchant Shipping (Carriage of Passengers) Regulations 2012, SI 2012/3152.
The 1974 Athens Convention (as amended by the 2002 Protocol) was implemented as regards other UK ships by the Merchant Shipping (Convention Relating to the Carriage of Passengers and their Luggage by Sea) Order 2014, SI 2014/1361.
Part I of the Schedule to the 2014 Order substituted a new Convention text being the 1974 Athens Convention, as amended by the 2002 Protocol. Part II of Schedule 6 (Provisions having effect in connection with the Convention) has accordingly been amended to give effect to provisions of that Convention but, pursuant to powers in section 184 of the Merchant Shipping Act 1995 (Application of Schedule 6 to carriage within the British Islands) there is reserved the right for different rules to apply to UK ships engaged on domestic voyages which are dealt with by the Carriage of Passengers and their Luggage by Sea (Domestic Carriage) Order 1987/670.
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