A vessel is arriving in New York from Japan with a cargo of approximately 60,000 metric tons of rice being carried under a bill of lading. During the transit of New York harbor, the vessel suffers an engine failure and loses all power. As a result, the vessel is unable to steer. It then strikes and damages another vessel injuring 6 crewmembers. As a result of the collision, water enters the cargo hold, and damages the rice. Given these facts, what are the potential in personam liabilities of the vessel owners, and the in rem liability of the vessel itself in a US federal admiralty court? Are there any possible limitations on this liability? Why? You may not assume any additional facts, but you may explain what additional facts you need to know and why they would make a difference to your answer.
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Law: Maritime Law
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Maritime Law
Liability of Owner and the Vessel
The Limitation Act applies to all vessel owners whether American or foreign (Comrie-Thomson, n.d.). The act applies to “seagoing vessels” that have been utilized in waterways, lakes or inland routes that include lighters, pontoons and canal boats. In the event that a vessel is involved in an a collision, the vessel owner can be held liable in personam and the vessel held liable in rem (Force, Yiannopoulos, & Davies, 2006). The vessel owner in case outlined is liable for damages caused to the cargo in shipment, while the vessel is liable in rem for damages caused to the other vessel due to collision. The vessel owner has the burden to prove that the collision resulted from vis major or inevitable accident. The allocation of fault by the Admiralty Court between the vessels involved in the collision will rest on the determination on whether the vessels were “seaworthy”, and on whether the vessels and its personnel were in compliance of all the statutes and rules that governs the fitness of crew and vessels, as well as the navigation of the vessels (Force, Yiannopoulos, & Davies, 2006). The vessel owner cannot be a guarantor………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
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