The Limitation Act in the United States: A Deeper Look( continued from page 14)
In short, if there is a reasonable chance that vessel interests could be entitled to limit and there are more than one or two claims, the possibility for the right to limit and the predictability of the concursus process are likely strong factors in favor of commencing a limitation proceeding. In the case of a single claim or a low likelihood that a claim will be filed at all, the“ wait and see” approach might make more sense.
Conclusion The Limitation Act in the United States is somewhat unique as compared to limitation provisions in other countries, namely with respect to how the fund is calculated, who is entitled to limit, and what a claimant must prove to break an owner’ s right to limitation. There are many factors to consider in deciding whether and when to assert the right to limit, be it in an affirmative action or as a defense. That said, the possibility of potential limitation of or exoneration from liability after a casualty event is generally one worth pursuing.
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