Limitation of Liability Act Petition

PETITION FOR LIMITATION OF LIABILITY

Under the Limitation of Liability Act, 46 U.S.C. § 30501 et seq.

IN THE UNITED STATES DISTRICT COURT

FOR THE [________________________________] DISTRICT OF [________________________________]

IN THE MATTER OF THE COMPLAINT OF

[________________________________],
as owner of the [☐ M/V] [☐ F/V] [☐ S/V] [________________________________]
for Exoneration from or Limitation of Liability

Civil Action No. [________________]
IN ADMIRALTY

PETITION FOR EXONERATION FROM OR LIMITATION OF LIABILITY

Petitioner, [________________________________] ("Petitioner"), by and through undersigned counsel, hereby petitions this Court for exoneration from or limitation of liability pursuant to the Limitation of Liability Act, 46 U.S.C. § 30501 et seq., and Supplemental Rule F for Admiralty or Maritime Claims, and respectfully states as follows:

I. PARTIES AND INTEREST IN THE VESSEL

1. Petitioner [________________________________] is a [☐ corporation organized under the laws of ________________] [☐ limited liability company] [☐ partnership] [☐ individual] with its principal place of business at [________________________________].

2. Petitioner is [☐ the sole owner] [☐ a part owner] [☐ the demise/bareboat charterer] [☐ the operator] of the vessel known as the [☐ M/V] [☐ F/V] [☐ S/V] [________________________________], Official Number [________________] (the "Vessel").

3. Petitioner's ownership/interest in the Vessel is more fully described as follows:

a. Type of ownership: [________________________________]

b. Percentage of ownership: [____]%

c. Date acquired: [__/__/____]

d. Documentation of ownership: [________________________________]

II. DESCRIPTION OF THE VESSEL

4. The Vessel is described as follows:

a. Name: [________________________________]

b. Official Number: [________________]

c. IMO Number (if applicable): [________________]

d. Flag State: [________________________________]

e. Home Port: [________________________________]

f. Type of Vessel: [________________________________]

g. Gross Tonnage: [________________]

h. Net Tonnage: [________________]

i. Length: [________________]

j. Beam: [________________]

k. Year Built: [____]

l. Hull Material: [________________________________]

m. Propulsion: [________________________________]

III. THE INCIDENT

5. On or about [__/__/____], at approximately [____] hours, an incident occurred involving the Vessel at or near [________________________________] (location).

6. The circumstances of the incident are described as follows:

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

7. At the time of the incident, the Vessel was engaged in [________________________________] (describe voyage or operation).

8. The persons aboard the Vessel at the time of the incident included:

IV. CLAIMS AND POTENTIAL CLAIMS

9. As a result of the incident, the following claims have been asserted or may be asserted against Petitioner and/or the Vessel:

A. Claims Already Asserted

B. Potential Claims

10. Petitioner is aware of, or reasonably anticipates, the following potential claims:

11. The total amount of claims asserted and reasonably anticipated is approximately $[________________].

V. TIMELINESS OF THIS PETITION

12. The first written notice of a claim arising from this incident was received by Petitioner on [__/__/____].

13. This Petition is filed within six (6) months of the first written notice of claim, as required by 46 U.S.C. § 30529 and Supplemental Rule F(1).

14. [If filed before receipt of written claim] This Petition is filed prior to receipt of any written claim in order to consolidate all potential claims in a single proceeding.

VI. VALUE OF PETITIONER'S INTEREST

A. Post-Casualty Value of the Vessel

15. The value of Petitioner's interest in the Vessel immediately following the casualty was:

☐ a. Vessel not lost: The post-casualty value of the Vessel is $[________________], based on [☐ appraisal dated __/__/____] [☐ survey dated __/__/____] [☐ other: ________________].

☐ b. Vessel total loss: The Vessel was a total loss, and therefore the post-casualty value is $0.

☐ c. Vessel salvaged: The salvage value of the Vessel is $[________________].

B. Pending Freight

16. The amount of freight pending at the conclusion of the voyage is $[________________].

17. [If no pending freight] There was no freight pending at the conclusion of the voyage.

C. Total Limitation Fund

18. Pursuant to 46 U.S.C. § 30523, the total amount to which Petitioner may limit liability is:

Post-casualty value of Vessel: $[________________]
Pending Freight: $[________________]
TOTAL LIMITATION FUND: $[________________]

VII. NO PRIVITY OR KNOWLEDGE

19. Petitioner denies any and all liability for the incident and the resulting claims.

20. In the alternative, if any acts of negligence, unseaworthiness, or statutory violations contributed to the incident, such acts occurred without the privity or knowledge of Petitioner.

21. Petitioner exercised reasonable care in:

☐ a. Selection, training, and supervision of the master and crew;

☐ b. Maintenance and upkeep of the Vessel;

☐ c. Ensuring the seaworthiness of the Vessel;

☐ d. Compliance with applicable safety regulations;

☐ e. Establishment of proper operating procedures;

☐ f. [________________________________].

22. Petitioner had no actual knowledge of, and no reason to know of, any conditions or practices that contributed to the incident.

VIII. REQUEST FOR INJUNCTION

23. Petitioner requests that this Court issue an injunction restraining all persons from commencing or prosecuting any action arising from the incident against Petitioner or the Vessel in any court other than this Court.

24. An injunction is necessary to:

a. Consolidate all claims in a single proceeding;

b. Ensure orderly and equitable distribution of the limitation fund; and

c. Protect Petitioner's statutory right to limitation of liability.

IX. DEPOSIT OR SECURITY

25. Pursuant to 46 U.S.C. § 30529 and Supplemental Rule F(1), Petitioner [☐ has deposited] [☐ will deposit] [☐ offers to deposit] with the Clerk of Court or a Court-appointed trustee:

☐ a. Cash in the amount of $[________________], representing the value of Petitioner's interest in the Vessel and pending freight; OR

☐ b. An approved surety bond in the amount of $[________________], plus an additional amount for interest.

26. Petitioner also [☐ has provided] [☐ will provide] security for costs in the amount of $[________________].

X. CLAIMS AGAINST OTHER PARTIES

27. [If applicable] Petitioner asserts claims against the following parties who may be responsible for the incident:

a. [________________________________] for [________________________________]

b. [________________________________] for [________________________________]

XI. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully prays that this Court:

A. Accept jurisdiction over this proceeding;

B. Issue an Order directing the Clerk to issue a monition in accordance with Supplemental Rule F(4), citing all persons having claims arising from the incident to file their claims with the Clerk and serve copies on Petitioner's counsel;

C. Issue an Order restraining all persons from commencing or prosecuting any action against Petitioner or the Vessel arising from the incident, except in this proceeding;

D. Approve Petitioner's deposit or surety as adequate security for the limitation fund;

E. If Petitioner is found to be at fault, limit Petitioner's liability to the amount of the limitation fund;

F. Exonerate Petitioner from all liability if Petitioner is found to be without fault;

G. Exonerate Petitioner from all liability if any fault is found to have occurred without Petitioner's privity or knowledge, and limit liability to the amount of the limitation fund;

H. Distribute the limitation fund among claimants pro rata according to the nature and priority of their claims;

I. Dismiss all claims in excess of the limitation fund; and

J. Grant such other and further relief as the Court deems just and proper.

Respectfully submitted,

[________________________________]
Attorney for Petitioner
Bar No.: [________________]
[________________________________]
[________________________________]
Telephone: [________________________________]
Email: [________________________________]

Date: [__/__/____]

VERIFICATION

STATE OF [________________________________]
COUNTY OF [________________________________]

I, [________________________________], being duly sworn, depose and state:

1. I am the [☐ Petitioner] [☐ an officer of Petitioner, specifically ________________] in this action.

2. I have read the foregoing Petition and know the contents thereof.

3. The statements contained in this Petition are true to my own knowledge, except as to matters stated on information and belief, and as to those matters, I believe them to be true.

4. The value stated for Petitioner's interest in the Vessel is accurate to the best of my knowledge.

______________________________________
[Affiant's Signature]

Print Name: [________________________________]
Title: [________________________________]

Subscribed and sworn to before me this [____] day of [________________], 20[____].

______________________________________
Notary Public
My Commission Expires: [__/__/____]

[PROPOSED] ORDER APPROVING SECURITY AND

DIRECTING ISSUANCE OF NOTICE AND INJUNCTION

Upon the filing of the Petition of [________________________________] for Exoneration from or Limitation of Liability, the Court finds that the Petition appears to state a proper case for limitation of liability;

IT IS HEREBY ORDERED:

1. Security Approved: The security deposited by Petitioner in the amount of $[________________], representing the value of Petitioner's interest in the Vessel plus pending freight, together with security for interest and costs, is approved;

2. Monition: The Clerk shall issue a monition citing all persons having claims arising from the incident of [__/__/____] to file their respective claims with the Clerk and serve copies on Petitioner's counsel within [____] days after the date of first publication of this Order;

3. Publication: The monition shall be published in [________________________________] (newspaper) once a week for four consecutive weeks;

4. Injunction: All persons are hereby restrained and enjoined from commencing or prosecuting any suit, action, or proceeding against Petitioner or the Vessel arising from the incident, except as a claimant in this proceeding;

5. Appearance: Any claimant desiring to contest Petitioner's right to limitation must file an answer to the Petition within [____] days after filing their claim.

SO ORDERED this [____] day of [________________], 20[____].

______________________________________
United States District Judge

EXHIBIT LIST

• Exhibit A: Certificate of Documentation for the Vessel
• Exhibit B: Vessel Appraisal/Survey
• Exhibit C: Documentation of Pending Freight
• Exhibit D: Copies of Claims Received
• Exhibit E: Insurance Policy Information
• Exhibit F: [________________________________]

IMPORTANT DEADLINES

SIX-MONTH DEADLINE: The petition must be filed within six (6) months after the owner receives written notice of a claim. 46 U.S.C. § 30529; Rule F(1).

Claimant Deadlines: Claimants must file claims within the time specified in the monition (typically 30-90 days).

SOURCES AND REFERENCES

• 46 U.S.C. Chapter 305 (Limitation of Liability): https://www.law.cornell.edu/uscode/text/46/subtitle-III/chapter-305
• Supplemental Rule F: https://www.law.cornell.edu/rules/frcp/rule_F
• Blank Rome - Limitation Act: https://www.blankrome.com/publications/limitation-act-united-states-deeper-look