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.
Legal update- limitation fund (775 KB)
You may also be interested in:
Legal Update: Singapore High Court clarifies applicable interest rate in LOU after constitution of limitation fund
The Convention on Limitation of Liability for Maritime Claims 1976 sets uniform rules relating to the limitation of liability for maritime claims.
Collision between “CMA CGM FLORIDA” and “CHOU SHAN” - PRC Supreme Court rules that non-spilling ship is liable for pollution damage
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.
QCR Summer 2020: Singapore High Court clarifies applicable interest rate in LOU after constitution of limitation fund
AS Fortuna Opco BV and another v Sea Consortium Pte Ltd and others  SGHC 72