How is the concept of limitation of liability applied under Admiralty Law?

Under admiralty law, limitation of liability is a concept used to limit the compensation owed to victims for harm caused by a maritime owner, operator, or other party. Generally speaking, this concept works by putting a cap, or limit, on the amount of financial liability an individual or business will be responsible for covering in the event of an incident such as an oil spill or shipwreck. This amount of financial liability is determined through a special proceeding called a Limitation of Liability Proceeding, which is typically initiated by the party responsible for the damage. Once the limitation of liability proceeding is completed, any victims of the incident will be required to file individual claims against the responsible party in order to receive compensation for their losses. This amount will be equal to the limit established during the limitation of liability proceeding and all claims are typically dealt with on a pro rata basis, meaning the amount to be paid out to each claimant is determined by dividing the total amount of the limitation fund by the total number of claimants. In South Carolina, the South Carolina Maritime Claims Act governs the rights of maritime claimants and sets out the legal requirements for filing a limitation of liability claim. This Act applies to all vessels registered in the state and provides a mechanism for victims of maritime incidents to hold the responsible party accountable for their losses.

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How is the concept of limitation of liability applied under Admiralty Law?

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