© DET JURIDISKE FAKULTET UNIVERSITETET I OSLO OWNER’S LIABILITY FOURTH LECTURE LIABILITY FOR COLLISIONS

© DET JURIDISKE FAKULTET UNIVERSITETET I OSLO Chapter 11 ’Liability for Collisions’ Outline: 1. ’Rules of the Road’ / COLREG 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 I OSLO 1. COLREG Regulates traffic at sea. 2.Included in Norwegian law by regulation ito MC section Rules on a) steering and sailing, b) conduct of vessels in sight of one another, and c) conduct of vessels in restricted visibility.

© DET JURIDISKE FAKULTET UNIVERSITETET I OSLO

© DET JURIDISKE FAKULTET UNIVERSITETET I OSLO 2. Assessment of fault 1.Little guidance in chapter 8 2.Objective assessment, taking into account a)COLREG, and b)the Ship Safety Act.

© DET JURIDISKE FAKULTET UNIVERSITETET I OSLO 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 Example ‘equally to blame’: Action Alpha Damage: 200 Wan Hai Damage: 400 ( ) : 2 = 300 Carries 300 of own loss Carries own loss and 100 of Wan Hai’s loss

© DET JURIDISKE FAKULTET UNIVERSITETET I OSLO 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. 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 ( ) : 2 = 300 Set off: = 100 Subject to limitation: 100 Action Alpha: 200 : 2 = 100 Wan Hai: 400 : 2 = 200 Settlement AA: 100 WH: 200

© DET JURIDISKE FAKULTET UNIVERSITETET I OSLO 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.

© DET JURIDISKE FAKULTET UNIVERSITETET I OSLO 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): See also the International Maritime Committee: Comité Maritime International (CMI): For convention texts (not always updated), try: For general maritime law information, look at: Prof William Tetley: (most of his articles and books can be downloaded)