Limiting Shipowners’ Liability and the Atlantik Confidence

The ability to limit, or indeed exclude, liability to a third party in the event of loss or damage caused by the negligent navigation or management of a vessel is a longstanding tradition in the shipping industry. Without this, shipping interests would be subject to unlimited and costly exposures.

The recent case of The Atlantik Confidence [2016] EWHC 2412 (Admiralty) demonstrates that, in particular circumstances, a shipowner can forfeit their right to limit liability. This advisor looks at this case in detail and what shipowners should be doing to manage the risk of forfeiting limiting liability.