The Limitation Of Liability & Maritime Law Persons

Who can benefit from the limitation of liability?

The provision of limitation of liability is applied to the ship-owner, the charterer, the lessee, the insurer, the ship-master, the shipmen and any other subordinates working on the board of the ship or providing services related to the ship's rescue operations.

What are the debts which subject to the ship-owner's limitation of liability?

Art.81 defines these debts as follows:

1. The damage happened by the ship to the construction of the port, docks, water paths or navigation auxiliaries.

2. The physical and material damage that occurs to on the board of the ship or related directly to the marine navigation to operate the ship.

The ship owner can uphold the limit of his liability even if the debt belongs to the state or any public person while this upholding doesn't constitute an admission of them.

What are the debts that don't subject to the ship-owner's limitation of liability?

The legislator in Art.82 defines the cases where the ship-owner can't uphold the limitation of his responsibility when the debts are resulting from:

1. Floating the sunk, destructed or abundant ship and lifting its wrecks or cargo or the things existing on it.

2. Rescuing the ship

3. The contributions to maritime co-losses

4. The rights of the master, the seafarers and every servant of the ship exist on its board or his work is serving the ship add to this the rights of the successors and their heirs.

5. Nuclear damage.

6. The damage resulting from oil pollution or any other materials.

When will the ship-owner's right of the limitation of liability lapse?

Art.89 stated that the ship-owner can't uphold the limitation of liability if the plaintiff has proved that the damage has occurred because of an action or omission taken by the ship-owner or his delegate with the intention of causing the damage or because of his omission associated with realizing that damage may occur.

When will the case of the ship-owner's liability terminate?

The liability of the ship-owner terminates by the lapsing of two years starting from the date of the action or omission that constituted his liability.

Who is the ship agent?

The ship agent is a natural or moral person whom the ship-owner or the shipmaster chooses in the port wherein the ship lands to watch over the owner and his ship's interests for a specific period of time.

What is the legal status of the ship agent?

The ship agency contract is considered as a normal contract for wage as Art.140 states that the ship agent performs his work as an agent of the equipper.

Art.142 states that the ship agent is responsible to the equipper as a wage earner agent.

Art.144 states that the ship agent is considered as a substitute for the equipper in the actions brought by or against him in Egypt. Also, the residence of the ship agent is considered as the residence of the equipper regarding the judicial notices of actions.

What are the effects of the ship agency contract?

The ship agency contract lays obligations upon both parties as:

First: The obligations of the ship agent:

He is obliged to:

1. Carry out the works relating to the usual needs of the ship.

2. Receive the goods for loading them on the board before the departure and delivering them to their owners after the arrival. (if he is ordered)

3. Receive the fees for the equipment after delivering the goods to the consignee. (if he is ordered)

Second: The obligations of the equipper:

The equipper is obliged to pay the wages agreed upon in the contract and to give him back all the expenses he spent on executing his usual agency work, in addition to their interests.

The ship agent has the right to keep amounts due to the equipper such as the transport fees, in order to fulfill his duties.

He also has the privilege of sixth classes on the ship and the transport fees that guarantee his debts due on the equipper as a result of performing his work.

How will the responsibility of the ship agent be held?

His responsibility will be held before the equipper and maybe held before others as follows:

First: The responsibility of the ship agent before the equipper:

Because of the contractual relationship between them, the equipper will be asked about the failure in performing his agency work.

Second: The responsibility of the ship agent before others:

Art.143 states that the ship agent can't be asked before the cosigners or the consignees for the destruction or the deterioration of the goods he receives to be loaded on the ship or be unloaded out to be delivered to their owners except the destruction happened because of his failure or any of his subordinates.

Who is the shipment agent?

He is a person chosen by the consignee or the owner of the goods to receive the goods after their arrival and to keep his right against the transporter, in addition to paying the transport fees if needed.

What is the legal status of the shipment agent?

The shipment agent is a wage-earner agent for receiving the goods, though, he may be considered as an agent by the commission if:

1. The bill of lading is designated to its holder and he will receive the goods in his name as if he is the consignee.

2. Also, if the bill of lading is endorsed by the consignee to the shipment agent for receiving the goods.

What are the effects of the shipment agency contract?

The shipment agency contract lays obligations upon both the shipment agent and the consignee as follows:

First: The obligations of the shipment agent:

He is obliged to receive the goods after being unloaded. He is also obliged to preserve the rights of the consignee, so if he realizes at the time of receiving the consignee's goods that there is a shortage or deterioration in them, he has to contact the transporter in writing to tell him about the damage or the deterioration.

Or there is a presumption that he has received the goods in the status and quantity stated in the bill of lading.

The shipment agent is also obliged to pay all or some of the transport fees if they are due.

Second: The obligations of the consignee:

The consignee is obliged to pay the wages agreed upon by the shipment agent in addition to the expenses he spent and their interests.

How will the responsibility of the shipment agent be held?

The shipment agent will be responsible for the goods' owner as he is a wage-earner agent.

So, his responsibility will never be held unless damages resulted from his failure or from his subordinate's failure.

Who is the maritime stevedore?

He is the person, whether moral or natural, who undertakes the material works needed for delivering them to the consignee.

He may also perform some legal acts for the account of the transporter, consignor and consignee.

What is the legal status of the maritime stevedore?

It is settled that the charge and discharge contract is considered as a contractual contract which is based mainly on the material work of charging and discharging.

Besides the material work, the contract is concerned with the legal relationship between the agency of the transporter, the consignor and the consignee.

So, besides being a maritime stevedore, he will be treated as an agent.

What are the effects of the charge and discharge contract?

The charge and discharge contract lays obligations on the maritime stevedore, the transporter, the consignor and the consignee as follows:

First: The obligations of the maritime stevedore:

The main job of the maritime stevedore is the material work of charging the goods on the board of the ship for transporting them or discharging them from the ship at the arrival port for being transported to the consignee.

Art.148/2 stated that the maritime stevedore may have additional jobs in favor of the equipper, the consignor and the consignee.

Second: The obligations of the one who contracts with the stevedore:

The transporter, the consignor or the consignee, any of them, can contract with the stevedore and will be obliged to pay the fees agreed upon.

The stevedore may detain the goods until his right is fulfilled according to the public rules.

How will the responsibility of the maritime stevedore be established?

According to Art.49/1, the stevedore carries out the operations of charging and discharging and additional operations in favor of the person who asked him to do it. So, his responsibility will only be held before this person.

What is the basis of Stevedore's responsibility?

According to Art.150, the stevedore is responsible for his failure or his subordinate's failure in the work he does.

So, the other party in the contract will need to prove the failure of the stevedore or his subordinates in performing his work for the latter to be responsible.

How can you define the responsibility of the maritime stevedore?

A maritime stevedore who didn't commit any fraud or irrevocable mistake which led to destruction, deterioration or the delay of goods will be subject to the rules of limiting the responsibility stated in Art.233 of the maritime law.