Legal Protection for Ship Owners
Ship owners have historically been protected by laws that limit their liability in maritime incidents.
Titanic Case
- White Star Line, the owner of the Titanic, faced $16 million in damages after the ship sank in 1912.
- Following the incident, the US Supreme Court referenced the Limitation of Liability Act of 1851.
- An extrajudicial settlement of $664,000 was reached in July 1916 to resolve the claims.
Dali Ship Collision
Grace Ocean Private Limited and Synergy Marine Group invoked the Limitation of Liability Act of 1851 after a collision involving the Dali ship resulted in six fatalities.
The Act allows ship owners to limit their liability to the value of the vessel and its cargo at the end of the journey.
Financial Details
- The ship’s worth at the time of the tragedy was estimated to be under $90 million.
- Salvage expenses are projected at $19 million, with repair costs at $28 million.
- An interim stipulation of $43 million is being offered by the companies involved.
Challenges Ahead
Claimants, likely relatives of the deceased individuals, and the state have the option to challenge the proposed settlement amount.
Final costs related to the incident are yet to be determined.
