How to protect one's rights in case of collision damage caused by foreign vessels

Q: Our company's ship collided with an outer ship in the waters of the Yangtze River estuary, causing our ship to sink and the outer ship to be severely damaged. Fortunately, there were no casualties. At present, the foreign ship is under investigation by the Maritime Safety Administration. In addition, as our company's vessel sank on the main channel, the Maritime Safety Administration has notified us to salvage the sunken ship as soon as possible and clear the channel. May I ask how we can better safeguard the legitimate rights and interests of our company?

 

Answer: This case is a typical foreign-related ship collision damage compensation dispute. Normally, ship collisions are caused by mutual negligence. According to China's Maritime Law and the Supreme People's Court's "Provisions on Several Issues Concerning the Trial of Ship Collision Dispute Cases", the shipowner or bareboat lessee should bear the liability for compensation in proportion to the degree of negligence.

However, the responsibility of the "bareboat lessee" must meet two conditions: first, the collision of the vessel during the bareboat lease period; Secondly, the bareboat rental registration has been carried out in accordance with the law. Therefore, it is very important to confirm the responsible person after a ship collision accident occurs, especially in the case of a collision with an outer ship. Because in this situation, it is difficult for the domestic party involved in the collision to understand the foreign ship owner and whether there is a bareboat charter; Moreover, once the foreign ship leaves the port after the investigation by the maritime bureau is completed, it will be difficult for the domestic ship to obtain protection for loss claims.

Therefore, in practice, it is usually necessary to immediately apply to the maritime court for the arrest of foreign ships and request appropriate guarantees to safeguard legitimate rights and interests. This method can usually achieve the goal of clarifying the responsible person and ensuring future loss claims. However, in order to achieve the above two objectives, it is necessary to pay great attention to the wording of the guarantee letter. In practice, there are often situations where losses cannot be effectively protected due to improper wording of the guarantee letter.

 

Due to the significant losses in this case, there may also be issues related to the limitation of maritime liability. The responsible party may limit their liability for maritime claims as stipulated in Article 207 of the Law, also known as "restricted claims", regardless of the basis of their liability, unless there is a statutory loss of liability limitation.

This case is a ship collision dispute, and the maritime claims arising from the collision comply with the provisions of Article 207 of the Maritime Law on restrictive creditor's rights, which can limit the liability for compensation. However, it is necessary to note that the compensation claim made for salvaging the vessel in this case may not limit the liability for compensation.

This issue was previously controversial, but Article 9 of the latest Supreme People's Court's "Provisions on Several Issues Concerning the Trial of Cases of Ship Collision Disputes" has made it clear that "for claims for compensation arising from the lifting, removal, or dismantling of sunken, distressed, stranded, or abandoned ships and their cargo caused by ship collisions or the cost of rendering them harmless, the responsible party shall not enjoy the limitation of maritime liability in accordance with Chapter 11 of the Maritime Law

 

At present, China's maritime courts generally consider the right of the responsible party to enjoy the limitation of maritime liability as a defense right. If the responsible party does not raise it with the court and undergo examination, the court will not automatically apply it. In practice, if a serious marine accident occurs, China's Maritime Procedure Law can also be used to apply to the maritime court for the establishment of a maritime liability limitation fund before or during the litigation process.

 

 

Of course, ship collision accidents also involve a considerable number of complex issues, and there are also many noteworthy aspects in the collection of evidence for collision liability and loss evidence, because it is difficult to preserve relevant evidence for a long time after a collision accident occurs. Therefore, the parties involved should understand this knowledge or seek guidance from relevant professionals to enhance the effectiveness and pertinence of the evidence materials.