LEGAL BACKGROUND

Congress enacted the Limitation of Liability Act, 46 U.S.C., 30501- 30512, in 1851 as an indirect way of supporting American commercial vessels competing with foreign flagged vessels that had been undercutting rates. The Act protects from unlimited liability the owner or operator of any “. . . seagoing vessels and vessels used on lakes or rivers or in inland navigation, including canal boats, barges, and lighters” (46 U.S.C., 30502) for personal injury or wrongful death damages that otherwise would exceed the value if the vessel at the end of the voyage,      “. . . shall not exceed the value of the vessel and pending freight” 46 U.S.C., 30505(b). The Act combined with the federal jurisdiction statute, 28 U.S.C., 1333, give the vessel owner the right to sue the victim in federal court for a finding of whether the limitation applies. You read correctly: the tortfeasor gets to sue the victim. And the “kicker” is such federal action can eliminate the victim’s right to a jury.

FACTUAL BACKGROUND

A young woman died in a pleasure boat collision on one of California’s rivers. The parents called the automobile accident injury lawyer who advertised on television. That lawyer filed a case in state court. When the perpetrator’s lawyer found out about that, he had the boat owner file a case in federal court under the Act. Parents’ lawyer did not realize the federal case put a hold on the state case and failed to file responding papers in the federal court. Consequently, the boat owner got a default against the parents, barring them from recovery at all.

TO THE RESCUE

In a panic, the parent’s lawyer contacted Berschler Associates, PC, which took over and filed for relief in the federal action. Although it was a narrow escape, the United States District Court adopted the argument of law made by Berschler and allowed the parents to proceed. Thus, their first lawyer, despite making errors, avoided being sued by the parents. Best of all, the parents achieved what they truly wished for: justice for their late daughter.

This entry has been created for information and planning purposes.

It is not intended to be, nor should it be substituted for, legal

advice, which turns on specific facts.