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OWNERS LIABILITY
SECOND LECTURE

LIABILITY FOR COLLISIONS

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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

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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 Wan Hai

Damage: 200 Damage: 400

Carries own loss and Carries 300

(200 + 400) : 2 = 300
100 of Wan Hais loss 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: Cross liability principle:

Add amounts and divide. Proportion loss before

Excess is subject to set off. This is the basis
Limitation. for the settlement of the
Claim (and NOT apportionment
of liability)
Action Alpha
(200+400) : 2 = 300 Action Alpha: 200 : 2 = 100
Set off: 300 - 200 = 100 Wan Hai: 400 : 2 = 200
Subject to limitation: 100 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 Hais 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 Hais 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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Example: Cargo damage

Action Alphas blame 1/3

Wan Hais 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.

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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: Comit 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

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