What is the doctrine of limited liability?

The doctrine of limited liability is a legal principle that is used in maritime law, which applies to the state of New Mexico, as well. Generally speaking, limited liability is a doctrine that is used to limit the amount of damages that a ship owner or operator may be held liable for in the event of an accident or incident at sea. According to the doctrine, the liability for any damages arising from a maritime accident or incident are limited to the value of the vessel or property that was directly involved in the incident. This means that the party responsible for the accident may only be held liable for the damages that their vessel caused, rather than the whole incident. For example, if a tanker owned by a shipping company ran aground, destroying a public dock and damaging several vessels, the shipping company would only be liable for the value of the tanker, not for the destruction of the public dock or the damaged vessels. The doctrine of limited liability is an important one, as it serves to protect vessel owners and operators from the financial damages that can arise from maritime accidents. The legal concepts that underlie limited liability help to ensure that vessel owners and operators will be held accountable for damages that are caused by their vessels, while still protecting them from the potential financial burdens of a catastrophic maritime accident.

Related FAQs

What is the doctrine of limited liability?

Related FAQs

Related Blog Posts