UNIVERSITETET I OSLO Owners liability EVE DE CONING

UNIVERSITETET I OSLO Owners’ liability EVE DE CONING 22 85 02 46 e. d. coning@jus. uio. no Room 561, Domus Nova © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO Limitation of liability - Limit of liability = cap on compensation payable Long traditions 1976 London Convention = Chapter 9 NMC Who can limit? - Section 171 reder shipowner charterer operator directly connected with salvage insurer © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO Limitation of liability What claims can be limited - Two categories of claim - Section 172 a - minus section 173 - Section 172 ‘regardless of the basis of liability’ © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO Limitation of liabilty What claims can be limited (cont. )? Section 172 b http: //www. youtube. com/watch? v=r. Bu_E 2 Tpo. BM&feature=related http: //www. youtube. com/watch? v=Mrs. PI 4 XBip 8 © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO Limitation of liability How are liability caps worked out? - Based on vessel’s size (tons = Tonnage Convention Section 172 no 6) - Larger vessel, more liable - SDR (special drawing rights) Section 505 http: //www. imf. org/external/np/fin/data/rms_five. aspx © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO Limitation of liability How are liability caps worked out (cont. )? - Section 175 (corresp. Section 172) No 2 personal injury claims No 3 property damage - Section 175 a (corresp. Section 172 a) wreck/cargo removal - Salvage vessels Section 175 no 5 - Proportional liability Section 176 1 st © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO Recap global limitation and intro pollution liability - Chapter 9 liability: - 1976 London Convention - ’global’ liability regime - based on domestic tort = ’add on’ to ordinary rules - ’caps’ compensation payable - Pollution liability - oil pollution: bunker and bulk - ’cap’ on compensation, but limit is higher - IMO (International Maritime Organization) Conventions - Different from Ch 9/global/1976 London Cvn liability: SUPPLANTS ORDINARY DOMESTIC TORT RULES, NOT MERELY AN ’ADDITION’ TO ORDINARY RULES. © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO POLLUTION LIABILITY - Two accident scenarios: - Oil tankers = Ch 10. II NMC = 3 IMO Conventions: The International Convention on Civil Liability for Oil Pollution Damage, 1992 (CLC) The International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 (FC) The Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 (SP) © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO POLLUTION LIABILITY Tier system: Third tier: 2003 Supplementary Fund Max 750 m SDR Size: 547 SDR MC section 201 Second tier: 1992 Fund Max 203 m SDR Size: 13 - 198, 5 m SDR MC section 201 First tier: CLC Liability Max 90 m SDR MC section 194 © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO POLLUTION LIABILITY - Bunker oil pollution = Ch 10. I NMC The International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001(BC 01) - HNS pollution = not yet in force The International Convention on Civil Liability and Compensation for Damage in Connection with the Carriage of Harmful and Noxious Substances by Sea, 1996 (HNS 96) (as amended by the Protocol of 2010) Our focus: Tanker pollution/oil carried in bulk © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO CLC POLLUTION LIABILITY WHEN DOES THE CLC APPLY? a) ’Oil pollution damage’; Section 191 2 nd para a) and b) NMC - property damage, but psychological damage? - environmental damage? - Owner’s own costs? a) ’Ship’; Section 191 3 rd NMC b) ’Oil’; Section 191 4 th NMC IF THE CLC APPLIES, IT APPLIES EXCLUSIVELY; Section 193 NMC © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO CLC POLLUTION LIABILITY MATERIAL RULES – THE FOUR MAIN COMPONENTS: 1. CHANNELING OF LIABILITY - Claim against the owner – only; Section 193 1 st NMC - ’Owner’ = ’registered owner’; Section 191 5 th NMC - List of exempted persons; Section 193 2 nd NMC - unless gross negligence; Section 193 2 nd last NMC - Right of recourse; Section 193 3 rd rd w. 2 nd c) NMC - unless gross negligence; Section 193 3 rd last NMC - Hebei Spirit? 2. STRICT, NOT ABSOLUTE, LIABILITY 3. LIMITATION OF LIABILTY 4. INSURANCE © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO CLC POLLUTION LIABILITY MATERIAL RULES – THE FOUR MAIN COMPONENTS: 1. CHANNELING OF LIABILITY 2. STRICT, NOT ABSOLUTE, LIABILITY - Strict liabilty; Section 191 1 st NMC - Exemptions; Section 192 3. LIMITATION OF LIABILTY 4. INSURANCE © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO CLC POLLUTION LIABILITY MATERIAL RULES – THE FOUR MAIN COMPONENTS: 1. CHANNELING OF LIABILITY 2. STRICT, NOT ABSOLUTE, LIABILITY 3. LIMITATION OF LIABILTY - CLC limitation = min 4, 5 m SDR/max 89, 7 m SDR; Sec 194 1 st NMC - Limitation barred ’gross negligence’; MC Sec 194 3 rd NMC, cf Art V. 2 CLC ’intent or reckless with knowledge’ - FC limitation = 203 m SDR/NOK 1, 8 b; Sec 201 NMC, Art 4. 4(a)-(b) FC - SP limitation = 750 m SDR/NOK 6, 75 b; Sec 201 NMC, 3. INSURANCE © DET JURIDISKE FAKULTET

UNIVERSITETET I OSLO CLC POLLUTION LIABILTY MATERIAL RULES – THE FOUR MAIN COMPONENTS: 1. CHANNELING OF LIABILITY 2. STRICT, NOT ABSOLUTE, LIABILITY 3. LIMITATION OF LIABILTY 4. INSURANCE - Compulsory; Section 197 NMC - Direct action; Section 200 NMC - owner insolvent? - limit, even if owner is grossly negligent - all exceptions as owner © DET JURIDISKE FAKULTET