Legal Update: Establishing a Limitation Fund Recent developments in Singapore and the UAE
The increasing willingness by jurisdictions to accept P&I Clubs’ LOUs to constitute limitation funds is a welcome trend for shipowners and P&I Clubs.
The practical advantages of using a P&I Club’s LOU as opposed to making a cash payment into Court are that it is a much quicker and considerably less expensive way to establish a limitation fund, without having to tie up cash reserves in court.
Find out more on this topic by reading our Legal Update attached above.
On 19 March 2013, MV “CMA CGM Florida” (CCF) collided with MV “Chou Shan” (CS) in the estuary of the Yangtze River, resulting in a serious rupture to the hull of CCF followed by a substantial bunker oil spill into the sea.
