LLMC CONVENTION PDF

Shipowners and salvors, as hereinafter defined, may limit their liability in accordance with the rules of this Convention for claims set out in Article 2. The term "shipowner" shall mean the owner, charterer, manager and operator of a seagoing ship. Salvor shall mean any person rendering services in direct connexion with salvage operations. Salvage operations shall also include operations referred to in Article 2, paragraph 1 d , e and f.

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Chapter V — Final clauses The States Parties to this Convention, Having Recognized the desirability of determining by agreement certain uniform rules relating to the limitation of liability for maritime claims, Have Decided to conclude a Convention for this purpose and have thereto agreed as follows: Chapter I — The right of limitation Article 1 Persons entitled to limit liability 1.

Shipowners and salvors, as hereinafter defined, may limit their liability in accordance with the rules of this Convention for claims set out in Article 2. The term "shipowner" shall mean the owner, charterer, manager and operator of a seagoing ship. Salvor shall mean any person rendering services in direct connexion with salvage operations. Salvage operations shall also include operations referred to in Article 2, paragraph 1 d , e and f.

If any claims set out in Article 2 are made against any person for whose act, neglect or default the shipowner or salvor is responsible, such person shall be entitled to avail himself of the limitation of liability provided for in this Convention. In this Convention the liability of a shipowner shall include liability in an action brought against the vessel itself.

An insurer of liability for claims subject to limitation in accordance with the rules of this Convention shall be entitled to the benefits of this Convention to the same extent as the assured himself. The act of invoking limitation of liability shall not constitute an admission of liability. Article 2 Claims subject to limitation 1. Claims set out in paragraph 1 shall be subject to limitation of liability even if brought by way of recourse or for indemnity under a contract or otherwise. However, claims set out under paragraph 1 d , e and f shall not be subject to limitation of liability to the extent that they relate to remuneration under a contract with the person liable.

Article 3 The rules of this Convention shall not apply to: a. Article 4 Conduct barring limitation A person liable shall not be entitled to limit his liability if it is proved that the loss resulted from his personal act or omission, committed with the intent to cause such loss, or recklessly and with knowledge that such loss would probably result.

Article 5 Counterclaims Where a person entitled to limitation of liability under the rules of this Convention has a claim against the claimant arising out of the same occurrence, their respective claims shall be set off against each other and the provisions of this Convention shall only apply to the balance, if any.

Where the amount calculated in accordance with paragraph 1 a is insufficient to pay the claims mentioned therein in full, the amount calculated in accordance with paragraph 1 b shall be available for payment of the unpaid balance of claims under paragraph 1 a and such unpaid balance shall rank rateably with claims mentioned under paragraph 1 b.

However, without prejudice to the right of claims for loss of life or personal injury according to paragraph 2, a State Party may provide in its national law that claims in respect of damage to harbour works, basins and waterways and aids to navigation shall have such priority over other claims under paragraph 1 b as is provided by that law. The limits of liability for any salvor not operating from any ship or for any salvor operating solely on the ship to, or in respect of which he is rendering salvage services, shall be calculated according to a tonnage of 1, tons.

Article 7 The limit for passenger claims 1. For the purpose of this Article "claims for loss of life or personal injury to passengers of a ship" shall mean any such claims brought by or on behalf of any person carried in that ship: a under a contract of passenger carriage, or b who, with the consent of the carrier, is accompanying a vehicle or live animals which are covered by a contract for the carriage of goods.

Article 8 Unit of Account 1. The amounts mentioned in Articles 6 and 7 shall be converted into the national currency of the State in which limitation is sought, according to the value of that currency at the date the limitation fund shall have been constituted, payment is made, or security is given which under the law of that State is equivalent to such payment.

The value of a national currency in terms of the Special Drawing Right, of a State Party which is a member of the International Monetary Fund, shall be calculated in accordance with the method of valuation applied by the International Monetary Fund in effect at the date in question for its operations and transactions. The value of a national currency in terms of the Special Drawing Right, of a State Party which is not a member of the International Monetary Fund, shall be calculated in a manner determined by that State Party.

Paragraphs 2 and 3 of Article 6 apply correspondingly to subparagraphs a and b of this paragraph. The monetary unit referred to in paragraph 2 corresponds to sixty-five and a half milligrammes of gold of millesimal fineness nine hundred. The conversion of the amounts referred to in paragraph 2 into the national currency shall be made according to the law of the State concerned. The calculation mentioned in the last sentence of paragraph 1 and the conversion mentioned in paragraph 3 shall be made in such a manner as to express in the national currency of the State Party as far as possible the same real value for the amounts in Articles 6 and 7 as is expressed there in units of account.

States Parties shall communicate to the depositary the manner of calculation pursuant to paragraph 1, or the result of the conversion in paragraph 3, as the case may be, at the time of the signature without reservation as to ratification, acceptance or approval, or when depositing an instrument referred to in Article 16 and whenever there is a change in either.

Article 9 Aggregation of claims 1. The limits of liability determined in accordance with Article 6 shall apply to the aggregate of all claims which arise on any distinct occasion: a against the person or persons mentioned in paragraph 2 of Article 1 and any person for whose act, neglect or default he or they are responsible; or b against the shipowner of a ship rendering salvage services from that ship and the salvor or salvors operating from such ship and any person for whose act, neglect or default he or they are responsible; or c against the salvor or salvors who are not operating from a ship or who are operating solely on the ship to, or in respect of which, the salvage services are rendered and any person for whose act, neglect or default he or they are responsible.

The limits of liability determined in accordance with Article 7 shall apply to the aggregate of all claims subject thereto which may arise on any distinct occasion against the person or persons mentioned in paragraph 2 of Article 1 in respect of the ship referred to in Article 7 and any person for whose act, neglect or default he or they are responsible.

Article 10 Limitation of liability without constitution of a limitation fund 1. Limitation of liability may be invoked notwithstanding that a limitation fund as mentioned in Article 11 has not been constituted. However, a State Party may provide in its national law that, where an action is brought in its Courts to enforce a claim subject to limitation, a person liable may only invoke the right to limit liability if a limitation fund has been constituted in accordance with the provisions of this Convention or is constituted when the right to limit liability is invoked.

If limitation of liability is invoked without the constitution of a limitation fund, the provisions of Article 12 shall apply correspondingly. Questions of procedure arising under the rules of this Article shall be decided in accordance with the national law of the State Party in which action is brought. Any person alleged to be liable may constitute a fund with the Court or other competent authority in any State Party in which legal proceedings are instituted in respect of claims subject to limitation.

The fund shall be constituted in the sum of such of the amounts set out in Articles 6 and 7 as are applicable to claims for which that person may be liable, together with interest thereon from the date of the occurrence giving rise to the liability until the date of the constitution of the fund.

Any fund thus constituted shall be available only for the payment of claims in respect of which limitation of liability can be invoked. A fund may be constituted, either by depositing the sum, or by producing a guarantee acceptable under the legislation of the State Party where the fund is constituted and considered to be adequate by the Court or other competent authority.

A fund constituted by one of the persons mentioned in paragraph 1 a , b or c or paragraph 2 of Article 9 or his insurer shall be deemed constituted by all persons mentioned in paragraph 1 a , b or c or paragraph 2, respectively. Article 12 Distribution of the fund 1. Subject to the provisions of paragraphs 1, 2 and 3 of Article 6 and of Article 7, the fund shall be distributed among the claimants in proportion to their established claims against the fund.

If, before the fund is distributed, the person liable, or his insurer, has settled a claim against the fund such person shall, up to the amount he has paid, acquire by subrogation the rights which the person so compensated would have enjoyed under this Convention. The right of subrogation provided for in paragraph 2 may also be exercised by persons other than those therein mentioned in respect of any amount of compensation which they may have paid, but only to the extent that such subrogation is permitted under the applicable national law.

Where the person liable or any other person establishes that he may be compelled to pay, at a later date, in whole or in part any such amount of compensation with regard to which such person would have enjoyed a right of subrogation pursuant to paragraphs 2 and 3 had the compensation been paid before the fund was distributed, the Court or other competent authority of the State where the fund has been constituted may order that a sufficient sum shall be provisionally set aside to enable such person at such later date to enforce his claim against the fund.

Article 13 Bar to other actions 1. Where a limitation fund has been constituted in accordance with Article 11, any person having made a claim against the fund shall be barred from exercising any right in respect of such claim against any other assets of a person by or on behalf of whom the fund has been constituted. After a limitation fund has been constituted in accordance with Article 11, any ship or other property, belonging to a person on behalf of whom the fund has been constituted, which has been arrested or attached within the jurisdiction of a State Party for a claim which may be raised against the fund, or any security given, may be released by order of the Court or other competent authority of such State.

However, such release shall always be ordered if the limitation fund has been constituted: a at the port where the occurrence took place, or, if it took place out of port, at the first port of call thereafter; or b at the port of disembarkation in respect of claims for loss of life or personal injury; or c at the port of discharge in respect of damage to cargo; or d in the State where the arrest is made.

The rules of paragraphs 1 and 2 shall apply only if the claimant may bring a claim against the limitation fund before the Court administering that fund and the fund is actually available and freely transferable in respect of that claim.

Article 14 Governing law Subject to the provisions of this Chapter the rules relating to the constitution and distribution of a limitation fund, and all rules of procedure in connexion therewith, shall be governed by the law of the State Party in which the fund is constituted.

Chapter IV — Scope of application Article 15 1. This Convention shall apply whenever any person referred to in Article 1 seeks to limit his liability before the Court of a State Party or seeks to procure the release of a ship or other property or the discharge of any security given within the jurisdiction of any such State.

Nevertheless, each State Party may exclude wholly or partially from the application of this Convention any person referred to in Article 1 who at the time when the rules of this Convention are invoked before the Courts of that State does not have his habitual residence in a State Party or does not have his principal place of business in a State Party or any ship in relation to which the right of limitation is invoked or whose release is sought and which does not at the time specified above fly the flag of a State Party.

A State Party may regulate by specific provisions of national law the system of limitation of liability to be applied to vessels which are: a according to the law of that State, ships intended for navigation on inland waterways b ships of less than tons. A State Party which makes use of the option provided for in this paragraph shall inform the depositary of the limits of liability adopted in its national legislation or of the fact that there are none.

A State Party may regulate by specific provisions of national law the system of limitation of liability to be applied to claims arising in cases in which interests of persons who are nationals of other States Parties are in no way involved.

Notwithstanding the limit of liability prescribed in paragraph 1 of Article 7, a State Party may regulate by specific provisions of national law the system of liability to be applied to claims for loss of life or personal injury to passengers of a ship, provided that the limit of liability is not lower than that prescribed in paragraph 1 of Article 7. A State Party which makes use of the option provided for in this paragraph shall inform the Secretary-General of the limits of liability adopted or of the fact that there are none.

The Courts of a State Party shall not apply this Convention to ships constructed for, or adapted to, and engaged in, drilling: a when that State has established under its national legislation a higher limit of liability than that otherwise provided for in Article 6; or b when that State has become party to an international convention regulating the system of liability in respect of such ships.

In a case to which sub-paragraph a applies that State Party shall inform the depositary accordingly. This Convention shall not apply to: a air-cushion vehicles; b floating platforms constructed for the purpose of exploring or exploiting the natural resources of the sea-bed or the subsoil thereof. Chapter V — Final clauses Signature, ratification and accession 1. This Convention shall be open for signature by all States at the Headquarters of the Inter-Governmental Maritime Consultative Organization hereinafter referred to as "the Organization" from 1 February until 31 December and shall thereafter remain open for accession.

All States may become parties to this Convention by: a signature without reservation as to ratification, acceptance or approval; or b signature subject to ratification, acceptance or approval followed by ratification, acceptance or approval; or c accession. Ratification, acceptance, approval or accession shall be effected by the deposit of a formal instrument to that effect with the Secretary-General of the Organization hereinafter referred to as "the Secretary-General".

Article 17 Entry into force 1. This Convention shall enter into force on the first day of the month following one year after the date on which twelve States have either signed it without reservation as to ratification, acceptance or approval or have deposited the requisite instruments of ratification, acceptance, approval or accession.

For a State which deposits an instrument of ratification, acceptance, approval or accession, or signs without reservation as to ratification, acceptance or approval, in respect of this Convention after the requirements for entry into force have been met but prior to the date of entry into force, the ratification, acceptance, approval or accession or the signature without reservation as to ratification, acceptance or approval, shall take effect on the date of entry into force of the Convention or on the first day of the month following the ninetieth day after the date of the signature or the deposit of the instrument, whichever is the later date.

For any State which subsequently becomes a Party to this Convention, the Convention shall enter into force on the first day of the month following the expiration of ninety days after the date when such State deposited its instrument.

In respect of the relations between States which ratify, accept, or approve this Convention or accede to it, this Convention shall replace and abrogate the International Convention relating to the Limitation of the Liability of Owners of Sea-going Ships, done at Brussels on 10 October , and the International Convention for the Unification of certain Rules relating to the Limitation of Liability of the Owners of Sea-going Vessels, signed at Brussels on 25 August Article 18 Reservations 1.

Any State may, at the time of signature, ratification, acceptance, approval or accession, or at any time thereafter, reserve the right: a to exclude the application of Article 2, paragraphs 1 d and e ; b to exclude claims for damage within the meaning of the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, or of any amendment or protocol thereto.

No other reservations shall be admissible to the substantive provisions of this Convention. Reservations made at the time of signature are subject to confirmation upon ratification, acceptance or approval. Any State which has made a reservation to this Convention may withdraw it at any time by means of a notification addressed to the Secretary-General.

Such withdrawal shall take effect on the date the notification is received. If the notification states that the withdrawal of a reservation is to take effect on a date specified therein, and such date is later than the date the notification is received by the Secretary-General, the withdrawal shall take effect on such later date.

Article 19 Denunciation 1. This Convention may be denounced by a State Party at any time one year from the date on which the Convention entered into force for that Party.

Denunciation shall be effected by the deposit of an instrument with the Secretary-General. Denunciation shall take effect on the first day of the month following the expiration of one year after the date of deposit of the instrument, or after such longer period as may be specified in the instrument. Article 20 Revision and amendment 1. A Conference for the purpose of revising or amending this Convention may be convened by the Organization.

The Organization shall convene a Conference of the States Parties to this Convention for revising or amending it at the request of not less than one-third of the Parties. After the date of the entry into force of an amendment to this Convention, any instrument of ratification, acceptance, approval or accession deposited shall be deemed to apply to the Convention as amended, unless a contrary intention is expressed in the instrument.

Article 21 Revision of the limitation amounts and of Unit of Account or monetary unit 1. Notwithstanding the provisions of Article 20, a Conference only for the purposes of altering the amounts specified in Articles 6 and 7 and in Article 8, paragraph 2, or of substituting either or both of the Units defined in Article 8, paragraphs 1 and 2, by other units shall be convened by the Organization in accordance with paragraphs 2 and 3 of this Article. An alteration of the amounts shall be made only because of a significant change in their real value.

The Organization shall convene such a Conference at the request of not less than one fourth of the States Parties. A decision to alter the amounts or to substitute the Units by other units of account shall be taken by a two-thirds majority of the States Parties present and voting in such Conference.

Any State depositing its instrument of ratification, acceptance, approval or accession to the Convention, after entry into force of an amendment, shall apply the Convention as amended. Article 8 Amendment of limits 1.

Upon the request of at least one half, but in no case less than six, of the States Parties to this Protocol, any proposal to amend the limits specified in Article 6, paragraph 1, Article 7, paragraph 1 and Article 8, paragraph 2 of the Convention as amended by this Protocol shall be circulated by the Secretary-General to all Members of the Organization and to all Contracting States. Any amendment proposed and circulated as above shall be submitted to the Legal Committee of the Organization the Legal Committee for consideration at a date at least six months after the date of its circulation.

All Contracting States to the Convention as amended by this Protocol, whether or not Members of the Organization, shall be entitled to participate in the proceedings of the Legal Committee for the consideration and adoption of amendments.

Amendments shall be adopted by a two-thirds majority of the Contracting States to the Convention as amended by this Protocol present and voting in the Legal Committee expanded as provided for in paragraph 3, on condition that at least one half of the Contracting States to the Convention as amended by this Protocol shall be present at the time of voting.

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The unit of measurement for monetary liability used is the Special Drawing Right SDR which is an interest-bearing international reserve asset created by the IMF in It should be noted that the SDR is not a currency but is based on a basket of international currencies comprising the US dollar, Japanese yen, euro and pound sterling. Limitation provisions can also be found in other international conventions such as the International Convention on Civil Liability for Oil Pollution Damage, the package limitations provided by the Hague and Hague-Visby Rules in relation to cargo claims and by the Athens Convention in relation to claims by individual passengers. The LLMC significantly increased the above levels of limitation, in some cases up to per cent. A separate set of limits were adopted for personal injury claims on which higher limits apply as opposed to property claims. The Protocol The limits were eventually eroded by inflation and by a reduction in the average purchasing power of the SDR and as a result new limits were adopted under the Protocol which were approximately per cent higher than those under the Convention. The limit of liability for personal injury claims up to 2, gross tonnes was set at SDR 2 million.

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Chapter V — Final clauses The States Parties to this Convention, Having Recognized the desirability of determining by agreement certain uniform rules relating to the limitation of liability for maritime claims, Have Decided to conclude a Convention for this purpose and have thereto agreed as follows: Chapter I — The right of limitation Article 1 Persons entitled to limit liability 1. Shipowners and salvors, as hereinafter defined, may limit their liability in accordance with the rules of this Convention for claims set out in Article 2. The term "shipowner" shall mean the owner, charterer, manager and operator of a seagoing ship. Salvor shall mean any person rendering services in direct connexion with salvage operations. Salvage operations shall also include operations referred to in Article 2, paragraph 1 d , e and f. If any claims set out in Article 2 are made against any person for whose act, neglect or default the shipowner or salvor is responsible, such person shall be entitled to avail himself of the limitation of liability provided for in this Convention. In this Convention the liability of a shipowner shall include liability in an action brought against the vessel itself.

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