Maritime Transport Act 1994

Liability where 2 or more ships involved

94: Division of loss

You could also call this:

"How ships share the cost of damage when they're both at fault"

Illustration for Maritime Transport Act 1994

You are involved in a situation where two or more ships are at fault and this causes damage or loss to one or more of the ships, their cargo, or other property on board. The ships will be liable to pay for the damage or loss in proportion to how much each ship was at fault. If it is not possible to work out the degree of fault for each ship, the liability will be shared equally among them. You should know that a ship will not be liable for any loss or damage that it did not contribute to. This rule does not affect contracts or other laws that may apply to the situation. It also does not stop someone from limiting their liability as allowed by law. The rules about dividing the loss apply when two or more ships are involved and one or more of them is damaged. This is part of the Maritime Transport Act 1994.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM336223.

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Transport and travel > BoatingMoney and consumer rights > Consumer protection

Part 8Liability where 2 or more ships involved

94Division of loss

Subject to the succeeding provisions of this section, where, by the fault of 2 or more ships, damage or loss is caused to 1 or more of them, or to their cargoes or freight, or to any other property on board, the liability to make good the damage or loss shall be in proportion to the degree to which each ship was at fault.
If, in any case to which subsection (1) applies, it is not possible to establish different degrees of fault, having regard to all the circumstances of the case, the liability shall be apportioned equally.
Nothing in this section shall—
render any ship liable for any loss or damage to which the fault of that ship has not contributed; or
affect the liability of any person under a contract of carriage, or any other contract; or
impose any liability upon any person from which that person is exempted by any contract or by any provision of law; or
affect the right of any person to limit that person’s liability in the manner provided by law.

Compare

1952 No 49 s 469
1987 No 184 s 23