Extension of Protocol to raise limits of liability for maritime claims.

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A decision made (25/05/2007) regarding: Extension of Protocol to raise limits of liability for maritime claims.

Subject:	Extension of Protocol to raise limits of liability for maritime claims
Decision Reference:	MD-E-2007-0105		Exempt clause(s):	None
Type of Report: (oral or written)	written		Person Giving Report (if oral):	n/a
Telephone or e-mail Meeting?	e-mail		Report File ref:	LL\Reg\ML\SL2002
Written report – Title	Extension of the 1996 Protocol to the Convention on Limitation of Liability for Maritime Claims (LLMC)
Written report – Author (name and job title)	Piers Baker – Maritime Compliance Manager
Decision: The Assistant Minister requested the Law Draftsman to proceed with draft Regulations under the Shipping (Jersey) Law 2002 that will give effect to the Protocol and the new limits of liability.
Reason(s) for decision: The United Kingdom has previously ratified the Convention on behalf of the Island and the Insular Authorities have requested the UK to extend the Protocol to Jersey. Provision for these Regulations has been made in the Shipping (Jersey) Law 2002 and they are necessary to give effect to the Protocol. Without the Protocol the limits to liability will remain artificially low within Jersey’s jurisdiction.
Action required: Following the Ministerial Decision, the Maritime Compliance Manager will request the Law Draftsman to proceed. There are no new financial or human resources issues arising.
Signature: Deputy A.J.H.Maclean (Assistant Minister)		Date of Decision: 25 May 2007

Extension of Protocol to raise limits of liability for maritime claims.

Extension of the 1996 Protocol to the Convention on Limitation of Liability for Maritime Claims (LLMC)

Background

The aim of the Convention on Limitation of Liability for Maritime Claims (LLMC) and that of its associated Protocol is to provide a manageable liability regime for maritime claims. Limitation is necessary for a variety of reasons not least to prevent the liability and consequential insurance being prohibitive.

Limitation is achieved on an agreed international sliding scale that relates to the size of the ship, thus larger, more valuable, ships carry higher liability than small ships.

The Convention came into force in Jersey in 1976. The Protocol to that Convention was agreed internationally in 1996 and came into force in the United Kingdom in 2004.

Partial provision was made for the 1996 Protocol in the Shipping (Jersey) Law 2002 and the Insular Authorities wrote in November 2003 requesting the United Kingdom to extend it to Jersey. The intention was for the Protocol to be in place in Jersey on the coming into force of the Shipping Law, on 1 June 2004.

The Purpose of the Protocol

Primarily the Protocol will have the effect of raising the limitation of liability to more appropriate levels. The passage of time inevitably has reduced the real monetary value of the original limits.

In terms of vessels visiting Jersey and considering a claim for serious injury or loss of life, liability based on the old rates is currently limited to approximately £1.2m for a small cargo vessel of 3,000 tons in size, rising to £3.3m for a large roll-on/roll-off freighter of 11,000 tons.

The new rates will be in a range closer to £2.2m up to over £7m.

Recent Correspondence

The United Kingdom’s Department of Constitutional Affairs (DCA) and which is now part of the Ministry of Justice, wrote to the Island on 2 April, in effect in response to the Jersey letter of November 2003. The DCA letter highlights three key issues:

To accede to the Island’s request to have to Protocol extended the Convention needs to be simultaneously denounced, so as to avoid a conflict between old and new limitation values; this matter can be addressed in correspondence with the DCA at the appropriate time.

There is an error in the UK’s implementing legislation that Jersey will wish to avoid; this has been drawn to the attention of the Law Draftsman.

In order for the Protocol to be effective Jersey’s implementing legislation needs to be in place which will specify the new limits and other aspects of the Protocol.

In order to progress item 3, draft Regulations are now needed. These Regulations were anticipated in the primary Law and are not regarded as complex. Accordingly, the Law Draftsman has agreed that the matter can be dealt with as ‘minor and routine.’

Action Point

The Assistant Minister is requested to agree that the Law Draftsman should prepare the draft Regulations. These will then be lodged au Greffe to be ratified by the States.

PGHB

Maritime Compliance Manager

17 May 2007