Articles Tagged with “El Faro Lawyer”

Fatal Course of the El Faro.pngOur maritime lawyers have recently been contacted by the media to provide legal insight on how the Shipowner’s Limitation of Liability Act may impact the lawsuits filed in the El Faro disaster. It is important from the outset to note that the Limitation Act is an over 150-year-old statute designed to encourage United States shipping enacted in a time when insurance was rarely extended to American shipowners. The reasoning behind the Limitation Act was to provide shipowners with a safety net to lessen their financial exposure should a maritime disaster strike. Congress hoped this, in turn, would encourage businesses to invest in shipping and operate vessels within the United States. In modern times, however, every shipping firm has marine insurance to protect them financially from a catastrophic loss such as a ship sinking. Given the common use of insurance, many courts have commented that the Limitation Act is outdated and no longer serves its intended purpose. Congress, however, has not removed the law from the books and a judge must apply the Limitation Act if invoked. The purpose of this post is to discuss how the Limitation Act may be used in the El Faro lawsuits.
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