Insight

The Louisiana Rule Sinks Limitation of Liability

The Louisiana Rule Sinks Limitation of Liability

Daniel J. "Dan" Hoerner

Daniel J. "Dan" Hoerner

August 15, 2022 04:19 PM

A U.S. District Court in Florida recently dealt a fatal blow to a barge owner’s attempt to have its liability limited under the Shipowners Limitation of Liability Act. The litigation arose out of a barge breakaway which resulted in damage to a bridge and other property and disrupted the operations of nearby businesses. Under the appropriate circumstances, admiralty law allows a vessel owner to have its liability limited to the value of its vessel and pending freight, which can often be substantially less than the damage caused by a vessel-related accident. Limitation will not be allowed if it is shown that the mishap was caused by something within the vessel owner’s “privity or knowledge,” which basically means that the incident occurred when the owner or its management knew or should have known ahead of time about the conditions or circumstances that led to the accident happening.

The breakaway in this case occurred during a hurricane, and the owner of the barges argued that the extraordinary weather conditions amounted to an “Act of God,” against which a reasonable efforts could not have prevented the breakaway. This argument was rejected when the Court concluded that, because the owner was aware of the impending storm, it was not caught off-guard by Mother Nature and should have taken more stringent steps to secure its vessels out of harm’s way. “Privity and knowledge” of the approaching hurricane doomed the owner’s chance at prevailing on a limitation defense.

Also, the multiple parties challenging the owner’s attempt at limiting liability invoked the longstanding maritime law precedent known as The Louisiana Rule. That legal principle provides that when a moving vessel strikes and damages a stationary object, it is presumed that the vessel is at fault. When that rule was invoked, the vessel owner then bears the burden of demonstrating that it lacked negligence in causing the vessel to strike the stationary object. The barge owners here could not satisfy that burden due, in large part, to the Court’s conclusion that it did not take sufficient measures in advance of the hurricane to ensure that its barges were adequately safeguarded.

This ruling is significant in that it not only removed the vessel owner’s limitation of liability defense, it also resulted in the various property owner’s claims being removed from the Court’s admiralty jurisdiction, so that they could then proceed with their claims in state court.

Related Articles

South Florida "Lawyer of the Year"


by Best Lawyers

Jerry Hamilton is honored as 2022 "Lawyer of the Year" in Admiralty and Maritime Law for Miami.

South Florida "Lawyer of the Year"

How Injury Lawyers Can Keep Their Heads Above Water by Referring Maritime Cases


by Justin Smulison

The maritime lawyers at Lipcon, Margulies & Winkleman, P.A. are ready to help injury lawyers fight for their clients in catastrophic cruise ship injuries.

Maritime Lawyers for Personal Injury Cases

Piercing Limitation of Liability in the Admiralty and Maritime Context


by Ethan Price-Livingston & David Y. Loh

One of the hallmarks of American admiralty and maritime law is the Limitation of Liability Act, which has been in existence since 1851 and permits a shipowner to limit its liability to the value of the vessel after the casualty.

Admiralty Limitation of Liability

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Combating Nuclear Verdicts: Empirically Supported Strategies to Deflate the Effects of Anchoring Bias


by Sloan L. Abernathy

Sometimes a verdict can be the difference between amicability and nuclear level developments. But what is anchoring bias and how can strategy combat this?

Lawyer speaking in courtroom with crowd and judge in the foreground

Things to Do Before a Car Accident Happens to You


by Ellie Shaffer

In a car accident, certain things are beyond the point of no return, while some are well within an individual's control. Here's how to stay legally prepared.

Car dashcam recording street ahead

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

The Push and Pitfalls of New York’s Attempt to Expand Wrongful Death Recovery


by Elizabeth M. Midgley and V. Christopher Potenza

The New York State Legislature recently went about updating certain wrongful death provisions and how they can be carried out in the future. Here's the latest.

Red tape blocking off a section of street

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Is Premises Liability the Same as Negligence?


by Jeremy Wilson and Taylor Rodney Marks

In today's age, we are always on the move, often inhabiting spaces we don't own. But what happens when someone else's property injures you or someone you know?

A pair of silhouetted legs falling down a hole with yellow background

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background