Limitation of liability is one of the ways that a maritime employer under the Jones Act can use, to limit his liability in a civil action. Simply put, Limitation of Liability allows the owner of the vessel to restrict his liability for a worker’s injuries.

The provision for such a restriction is contained in the Limitation of Liability act of 1851. The Act was meant to give American-flagged vessels an edge while competing with foreign vessels on the open seas. It was then believed that vessel owners who faced unrestricted or unlimited liability in case of maritime disasters like a sinking or explosions, would not be very competitive.

However, this 159-year-old law can dramatically impact your Jones Act claim. A Jones Act vessel owner can move to restrict his liability after a maritime accident. If he does so, his liability will be limited to the value of his interest in the vessel. In case of a vessel that is completely destroyed in a maritime fire, the value of the vessel may be next to nil, which is equal to the vessel owner’s liability.

A vessel owner who receives notice of a claim by an injured worker must file a Limitation of Liability action within 6 months. The action may be filed in the district where his vessel has been attached.

If you come up against an employer who uses Limitation of Liability as a defense against your civil action, you’re facing a severely complicated case that includes convoluted location disputes, and other complexities of maritime law.  You will need the help of an experienced maritime attorney who has experience dealing with limitation of liability issues.

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