Limited Liability : Loss of the right to Limit

Abstract

This paper seeks to critically evaluate the concept of limited liability in terms of the loss of the right to limit liability. It reviews the colourful history of this mechanism through from its ancient legal origins to its modern place in international law. It reviews the literature that labels it unjust and unconscionable, as well as denoting attention to the arguments which see its ongoing significant existence through out maritime law globally today.

Primarily, this paper intends to review the International Conventions which have attempted to unify the law of limited liability internationally, with specific regard to the phraseological developments of the right that have instituted it to an unbreakable status. It also seeks to shed light on the future of the right to limit liabilty by contrasting developments in case law and disparity within the international liability regime. Ultimately, this paper is critical of the right to limit labelling it unjust and firmly suggests the priviledge should be reviewed.