Decision ID: 000871

In February 1998 the 1971 Fund Executive Committee, noting that the criminal investigation into the cause of the incident had concluded that the master had failed to check the sea chart and had followed a dangerous course causing the ship the ground on a submerged rock, decided that there were no grounds on which the Fund could challenge the shipowner’s right of limitation, nor refuse to pay indemnification to the shipowner under Article 5 of the 1971 Fund Convention. The Committee confirmed, however, that the shipowner would need to establish a limitation fund in order to be entitled to limit liability.

Date: 01.02.1998
Categories: Financial limits, limitation proceedings and indemnification, Legal actions
Subjects: Establishment of the shipowner's limitation fund, Indemnification of the shipowner under Article 5.1 of the 1971 Fund Convention, Shipowner's right of limitation of liability, Shipowner's right of limitation liability