What is the law of limitation of liability?
The law of limitation of liability is a part of maritime law in South Carolina that states that if a person or business is faced with legal liability related to a maritime incident, their financial responsibility for damages is limited. This limitation of liability is based on the value of the vessel or property involved before the incident occurred. This means that if the vessel was worth $10,000 before the incident, the owner would only be liable for damages up to $10,000 regardless of the extent of the damages. Limitation of liability does not apply in certain cases. For example, if a person is found to be negligent or reckless in causing the incident, or is found to be in violation of maritime law at the time of the incident, the limitation of liability will not apply. Additionally, if the vessel or property involved was not properly insured at the time of the incident, the limitation of liability will not apply. In South Carolina, in order to utilize the law of limitation of liability, the person or business responsible for the incident must file a petition in court and prove that the damages were caused by a maritime incident and that they were not negligent or reckless in causing it. Upon successful filing, the damages the responsible party is liable for will be limited to the value of the vessel before the incident occurred.
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