Landmark decision for the shipping industry in Court of Appeal
On 6th March 2014, the Court of Appeal in England and Wales ruled that the use of a P&I Club Letter of Undertaking ("LOU") was acceptable under relevant United Kingdom legislation.
The decision is of considerable importance to the shipping industry, P&I Clubs and other insurers who provide insurance and reinsurance in respect of maritime claims. The issue in question was whether it was in principle possible to constitute a limitation fund under the International Convention on Limitation of Liability for Maritime Claims 1976 (implemented in the UK by the Merchant Shipping Act 1995), by means of a guarantee in the form of a letter of undertaking provided by a P&I Club.
The decision will have a huge impact, not only for the shipping industry in the UK, but also all over the world.
The full text of the judgement is available to download at the top of this page.
A number of law firms have issued advisories and newsletters on this topic and links to these can be found below:
Jackson Parton - Case Summary: The “Atlantik Confidence” 6 March 2014
Hill Dickinson - The Atlantic Confidence
Clyde & Co -
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With effect from 30th January 2014 non-tank as well as tankships calling at US ports will be required to submit VRPs. For Club and other resources to assist in compliance click here
International Environmental compliance
Environmental Compliance resource page collates material in respect of International environmental compliance issues affecting our Members. Information from the Club, Loss Prevention and external resources has been collated in one place for ease of reference.
The Maritime Labour Convention enters into force in August 2013 - resources, news & advice on implementation can be found in this dedicated section. READ MORE
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