Article by James J. Donovan
The privilege of global limitation of liability, that is, the ability of a shipowner to discharge all liabilities by surrendering his interest in a vessel that has been involved in a maritime catastrophe, is an idea conceived to serve the needs of commerce. It is to be distinguished from statutory provisions such as the Harter Act or the Carriage of Goods by Sea Act, which attempt to establish a floor below which a carrier may not limit his liability for cargo damage that occurs in the ordinary course of transport. The limitation of a shipowner's liability, which is the subject of this symposium, has been justified as a commercially practicable device by which the effects of a maritime disaster are reasonably apportioned. However, the privilege has been subject to criticism from those who maintain that its usefulness is spent.
It is therefore an appropriate time for dispassionate and critical analysis of this unique doctrine. It is the purpose of this paper to contribute to this discussion by tracing the origin and development of the concept of the limitation of shipowners' liability.
About the Author
James J. Donovan. J.D., Fordham University School of Law. Member of the Bar. President, The Maritime Law Association of the United States.
Citation
53 Tul. L. Rev. 999 (1979)