How the Limitation of Liability Act Affects Your Compensation

What Does This Act Do?

The need for a limitation of liability has been seen since 1851 when this law was enacted. The Limitation of Liability Act was formulated for the purpose of limiting the amount of damage claims in accordance with the value of the vessel the accident occurred on. This is for the purpose of required compensation for accidents not leading to the bankruptcy of the company. The most recent example of this is in the case of the Deepwater Horizon oil spill.

The accident that took place in the Gulf of Mexico two years ago was the largest environmental disaster of its kind. It not only caused environmental damage, it also hurt all the industries that thrived on the Gulf. Everything from restaurants to hotels were harmed because the spill took place at the peak busy season. BP set up a $20 billion fund in order to compensate the various victims of their error, which was necessary because they receive thousands of claims every week.

BP is one of the world's largest companies and is vital to the oil and gas industry. They can afford to set up a fund of this magnitude without going bankrupt. The Limitation of Liability Act was used in this case even still. In the event that negligence is proven in a maritime case, all losses are covered, but only to the extent of the value of the vessel as well as its "freight then pending." For example, if you were injured while working on a spud barge and you wanted to file a claim for damages that measured $7 million but the vessel was only worth $4 million, liability would have to be limited.

Help from a Louisiana Offshore Injury Attorney

You should know that in the event that you are injured, you won't be left without help. By seeking the help of a Louisiana maritime attorney from Arnold & Itkin you will be able to obtain the maximum amount of recovery possible. Your case will be evaluated as well as the value of the vessel on which you were injured. It must also be taken into account what other damages, if any, were included in your accident. If your injury was not your fault then you can get compensated for it, but to do so you need the help of a skilled attorney.

You may be afraid that you will not get the necessary amount of compensation because of the low worth of the vessel you were working on. What needs to happen in your injury case is that damages need to be prioritized. For example, you should not be cut short of compensation that is vital to your recovery because the vessel itself needed to be repaired. This is why a skilled attorney is necessary. They will be able to develop arguments based on maritime law that will get you the justice you deserve.

Contact a Louisiana offshore injury attorney from Arnold & Itkin if you want the maximum recovery possible.