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What is the Limitation of Liability Act? OceanGate could use same 1851 law that protected Titanic owners in court

The Limitations of Liability Act allows vessel owners to limit their liability after a maritime disaster

Published on: Jun 27, 2023, 06:59:46 IST
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OceanGate, the company that operated the doomed Titan submersible, could use the same law that the owners of the Titanic used in court to avoid legal liability over a century ago – the Limitation of Liability Act of 1851. What was meant to be an exciting 10-hour journey to the Titanic wreckage ended in the deaths of five people who had boarded the vessel. All the passengers were killed in a catastrophic implosion – an underwater implosion that led to the vessel suddenly collapsing.

A logo on a vessel near the OceanGate Inc. offices in Everett, Washington, US, on Thursday, June 22, 2023 (Photographer: David Ryder/Bloomberg) (Bloomberg)
A logo on a vessel near the OceanGate Inc. offices in Everett, Washington, US, on Thursday, June 22, 2023 (Photographer: David Ryder/Bloomberg) (Bloomberg)

“It is an interesting situation because of where it happened in international waters – there's a lot of complex issues of choice of law and jurisdiction about where any disputes may take place, what companies or what entity and government authorities will investigate,” Tulane University adjunct maritime law professor Michael Harowski, who teaches a course at the renowned institution’s law school on limitation liability, told The Independent.

“It’ll be fascinating to see how it plays out, because actually, going back to the original Titanic disaster, that raised a lot of the same concerns and issues as to liability – and, in fact, the owners of the Titanic in the United States did seek protection under the limitation of liability,” Michael added.

“Any claimants will most likely proceed, at least in part, under the Death on the High Seas Act (DOHSA),” Maritime Law Hawaii’s Andrew Porter, who will be teaching a course this year at the University of Hawaii’s renowned law school, said. “The two aspects of this case that immediately come into focus are the seaworthiness of the vessel and the loss of future income of the deceased.”

It is believed that archaic maritime laws may now help OceanGate.

What is the Limitation of Liability Act?

The Limitation of Liability Act is a federal law meant to protect American ship owners. According to the website of Attorney Steve Lee, “The Limitations of Liability Act allows vessel owners to limit their liability after a maritime incident or casualty to the post-casualty value of the vessel and its cargo.”

“Under the Act, a shipowner may be able to limit its liability to the value of the ship after the incident, plus pending freight. A vessel owner is not permitted to limit its liability if the vessel owner had privity or knowledge of the negligence or unseaworthiness that caused the casualty,” the website of Mariner Law says.

The act applies to vessels including cruise ships, container ships, dry bulk carriers, and tug and barges, and also to pleasure boats, yachts, jet skis, and houseboats.

Meanwhile, OceanGate has closed its headquarters in Everett, Washington State. The leasing agent said the company would be closing indefinitely, according to The Seattle Times. OceanGate’s CEO Stockton Rush was killed in the latest tragedy along with British billionaire Hamish Harding, French diver Paul Henry Nargeolet, and Pakistani businessman Shahzada Dawood and his son, Suleman.

 
ABOUT THE AUTHOR
Sumanti Sen

Sumanti Sen covers everything that’s happening in the US, from politics to entertainment, but her expertise lies in covering crime news. She has comprehensively chronicled the Idaho student murders, the Laken Riley and Iryna Zarutska cases, and the killing of Charlie Kirk, among other incidents. Over the years, she has interviewed several victims/families of victims of crimes seeking justice. She digs up stories that might otherwise remain unheard, and does her bit to ensure that victims and survivors’ voices are heard. Sumanti’s many years of experience also include interviews with Hamas attack survivors and mental health experts, among others. Her coverage of the October 7 Hamas attack on Israel and interviews with survivors of the tragedy, coupled with her other works including the Titan submersible coverage, earned her the Digi Journo of the Quarter award during her first year at Hindustan Times. Sumanti actively tracks missing person cases in the United States, and peruses Reddit and other social media platforms to bring to light cases that frequently elude public attention. She has extensively covered the disappearances of Nancy Guthrie, Thomas Medlin, Beau Mann, and Sudiksha Konanki, among others. When not at work, you will either find her with her novels, or with her beloved rescue pooches.

Get the latest World News, breaking headlines and global updates from the US, UK, Pakistan, Bangladesh, Russia and other countries. Follow major international events on Hindustan Times.
Get the latest World News, breaking headlines and global updates from the US, UK, Pakistan, Bangladesh, Russia and other countries. Follow major international events on Hindustan Times.
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