A New York Maritime Injury Lawyer Explains the Limitation of Liability Act Defense and What You Can Do About It
The Limitation of Liability Act (LOLA) of 1851, also known as the Shipowner's Limitation of Liability Act, limits the liability of vessel owners for maritime accidents to the value of the vessel and any freight earned at the end of the voyage. The U.S. Congress passed the act to protect the shipping industry by reducing the financial risk of shipowners. The LOLA applies to all types of marine vessels, including cargo ships, riverboats, personal watercraft, barges, canal boats, lighters, yachts, fishing vessels, tugs, and recreational boats. However, it excludes certain small passenger vessels.
The LOLA's main provision allows a shipowner to limit their liability for losses or injuries that occur without what is known as their “privity or knowledge.” They march into the United States federal court and file a complaint for the limitation or exoneration of liability and, essentially, sue you for getting injured!
It is a B.S. defense in our opinion, but it could drastically affect the value of your case.
For example, if a fishing vessel sinks, the vessel's value at the end of the voyage likely is nothing. This means that no matter the severity of the injuries or wrongful deaths, the owner may not have to pay any damages or very little damages because the vessel has no value.
So, you can lose out on your personal injury claims for lost wages, medical expenses, or other compensation, even if you are a Jones Act seaman or seafarer.
What Should You Do if the Owner Files a Limitation of Liability Action?
You can protect your legal rights and fight for your fair compensation by:
- Immediately contacting an experienced maritime lawyer or your current attorney if you already have an attorney. Your lawyer will advise you about your rights, responsibilities, and important strategies to combat the shipowner’s filing in court.
- Filing the right documents in court. An experienced maritime attorney will know and understand the defenses and offensive use of the Limitation of Liability Act (LOLA) claim and file court pleadings denying the owner’s right to limit liability.
- Gathering evidence and developing a legal strategy. The experienced maritime attorney will know how to discover evidence to refute the vessel owner’s claims and fashion an offensive strategy to have the court strike the limitation defense and affirmatively put your case back on track to help you get fair compensation for your injuries.
The experienced maritime attorneys at Hofmann & Schweitzer have defended against literally hundreds of LOLA actions or claims seeking the Limitation of Liability Act as an affirmative defense.
