Section 11.40 Persons Within Scope of Limited Liability Act

• Library: Tort Law 2016

B. (§11.40) Persons Within Scope of Limited Liability Act

The benefits of the LLA extend to three classes of persons:

1. The owner of the vessel, see 46 U.S.C. §§ 30505(a) and 30512

2. A charterer within the definition of 46 U.S.C. § 30501 (a bareboat charter exists when "the charter-party let the entire vessel to the charterer with a transfer to him of its command and possession and consequent control over its navigation," Leary v. United States, 81 U.S. (14 Wall.) 607, 610 (1871); a charter party is analogous to a lease)

3. An operator with such significant management and operational control over the vessel that the operator can be deemed an implied charterer or pro hac vice owner

See In re Petition of United States, 259 F.2d 608 (3^rd Cir. 1958). The term "owner" as used in the LLA "is an ‘untechnical word’ which should be interpreted" liberally. Dick v. United States, 671 F.2d 724, 727 (2^nd Cir. 1982) (quoting Flink v. Paladini, 279 U.S. 59, 63 (1929)).

To be a bareboat charterer entitled to assert limitation of liability, the charterer must show that the charterer "man[ned], supplie[d], and navigate[d] [such] vessel at the charterer’s own expense or by the charterer’s own procurement." 46 U.S.C. § 30501.

Courts consider several factors in determining whether an operator of a vessel has sufficient control over the vessel to be entitled to assert limitation of its liability as a pro hac vice owner of the vessel. The relevant factors include:

the responsibility of equipping, fueling, manning, supplying, maintaining, providing food, and procuring insurance; ultimate control over where the vessel travels; and the cargo carried.

See:

· In re

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