What is the law of limitation of liability?

The law of limitation of liability establishes the maximum amount of damages a person or company can be held responsible for in the event of an incident, such as a maritime accident. In Texas, the limitation of liability is governed by the Limitation of Liability Act of 1851, which allows a shipowner to limit their responsibility for any damages or losses incurred by their vessel by registering the vessel with the US Coast Guard and filing a limitation action in the appropriate district court. The limitations of liability established by this law depends largely upon the type and size of the vessel involved in the incident. Generally speaking, a vessel owner can limit their liability to the value of the vessel and the freight charges due on the voyage. Any other damages incurred cannot exceed this amount. The Limitation of Liability Act can also be used to limit the liability of a shipowner for the negligence of their crew. The law limits the shipowner’s liability to the amount of the vessel and its freight charges, regardless of the negligence of the crew. This limitation can be waived, however, if the owner contributed to the negligence in any way. The Limitation of Liability Act serves as an important protection for shipowners, allowing them to limit their liability in the event of an incident and provide a more predictable and secure business environment. For those who may find themselves involved in a maritime accident or other incident, it is important to understand the law of limitation of liability and the extent to which it applies in a given situation.

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What is the law of limitation of liability?

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