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Maritime Transport Act 1994

Civil liability for pollution of marine environment - Liability for pollution from ships

351: Distribution of amounts paid in satisfaction of liability

You could also call this:

"How the court shares out money paid for ship pollution damages"

Illustration for Maritime Transport Act 1994

You are involved in a court case about a ship that has caused pollution. The court finds the ship's owner is liable for damages under section 345 or section 346. The owner's liability is limited under section 347. The court will decide the maximum amount the owner must pay. You must pay this amount into court. The court will then work out how much each person making a claim should get. The court will divide the money paid into court among these people. If someone has already paid you to satisfy your claim, they can be part of the distribution. This includes the ship's owner, their insurer, or someone who has paid on their behalf. The court may let you make a claim for money, but you must do it within a certain time. The court can delay giving out the money if it thinks more claims might be made later.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM338132.

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Part 25Civil liability for pollution of marine environment
Liability for pollution from ships

351Distribution of amounts paid in satisfaction of liability

  1. Where a court finds that the owner of a ship is liable in damages under section 345 or section 346, and the liability of that owner is limited under section 347, the court shall—

  2. determine the maximum amount of liability; and
    1. direct payment into court of that amount; and
      1. determine the amount to which the persons making claims in the proceedings would otherwise be entitled; and
        1. direct the distribution of the amount paid into court to each of those persons in proportion to the amount determined under paragraph (c) as the amount to which that person would otherwise be entitled.

          1. Where, prior to a court making a direction for distribution of moneys under this section, any sum has been paid to a person in or towards satisfaction of any claim in damages for pollution damage under section 345 or section 346—

          2. by the owner of the ship or any insurer; or
            1. by a person who has or is alleged to have incurred liability otherwise than under section 345 or section 346 and who is—
              1. the employee or agent of the owner of the ship; or
                1. the charterer of the ship or the agent in New Zealand of the charterer; or
                  1. any person interested in, or in possession of, the ship,—
                    2. the person who paid the sum shall, to the extent of the amount paid, be in the same position with respect to any distribution made in accordance with this section as the person to whom it was paid would have been.

                  2. Where an owner of a ship who is liable under section 345 or section 346 has voluntarily made any reasonable sacrifice, or incurred any reasonable expenses, to prevent or reduce the pollution damage for which the owner is liable or would have been liable, that owner shall be in the same position with respect to any distribution made under this section as if that owner had a claim for the cost of that sacrifice or those expenses.

                  3. No claim for the distribution of any money under this section shall be admitted by a court unless it is made within such time as the court may direct or such further time as the court may allow.

                  4. The court may, if it thinks fit, postpone the distribution of any money under this section having regard to any claims that may be made in the future.

                  Compare
                  • 1974 No 14 s 35