This morning I was dealing with a case involving a Petition for Limitation of Liability. This is an area of the maritime law that'll make your trusts and estates lawyer's jaw drop. In fact, pretty much all attorneys who don't know about this little statute, will shake their head in wonderment when they hear about it.
Long story short, back in the day when shipping was getting on its feet, everyone came to realize that a boat could do a lot of damage, which could translate into lots of owner liability. Congress wanted to promote shipping, so it adopted a law which -- in very broad terms -- allows a vessel owner to limit its liability as the result of an accident to the post-casualty value of its vessel under certain circumstances.
Again, broadly speaking, if a vessel hits a dock and causes a lot damages, you'll probably see a petition for limitation of liability being filed looking to, well, limit the owner's liability. The big battleground usually involves a determination of whether the owner had knowledge of what caused the incident. These can be complicated cases with lots of procedural and factual issues. Interesting stuff, though. And, yes, the statute can apply in the context of recreational boats.





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