HOW TO RESPOND TO A LIMITATION OF LIABILITY SUIT IN FLORIDA

In the context of a boating accident or personal watercraft collision in Florida: How does a person fight a Limitation of Liability case in Florida? The usual full title is “Exoneration From Or Limitation Of Liability” petition. This is a federal law which was passed by the U.S. Congress in 1851, well before the Civil War, and can be found at 46 United States Code §30501, et seq. The intention of Congress was to limit the liability of the owner of a vessel to the worth of the vessel after an accident in certain circumstances. Most believe that the original law was intended to have a commercial purpose, but it has clearly been applied and used by marine insurance companies to try to limit payment on injury claims in the recreational boating accident context. These Limitation of Liability cases are now frequently filed in boating accidents and personal watercraft injury cases. The objective is the same: no matter the severity of the injuries, the boat or personal watercraft (a/k/a “Jetski”) insurer wants to limit the payout to an amount much smaller than the available amount of insurance.

So how to fight back against a Limitation action in Florida? The first notification an injured boating accident victim typically gets is when they have been sued in federal court. Yes, the victim is sued in federal court, or is named as one of multiple potential victims who were injured in the same boating or personal watercraft incident as other potential injured claimants. This notification of a lawsuit filed against an injured person cannot be ignored. The federal court judge will enter a date by which the claimant must timely file a claim in federal court and must do so correctly. Therefore, the first step is to file the claim before the expiration of the time set by the judge, and any claim must be in the proper format.  This alone does not ensure payment to the victim, but failing to timely file a claim can permanently prohibit any claim for injuries and damages in that court or in any context. It is not sufficient to have a case filed in state court, and ignore the federal court Limitation action. The result would be the same: a default in answering the Limitation action in federal court prohibits the injured claimant from going forward even in state court.

It is imperative that you engage qualified maritime counsel. Choice of counsel should include an attorney who has successfully handled Limitation actions, and preferably has experience in multiple federal courts. These are complex matters involving maritime law, not Florida law. What that means is very few attorneys are qualified to handle a Limitation of Liability action. While there are a multitude, literally thousands, of Florida attorneys handling automobile accidents and fall downs, there are as few as 50 attorneys in Florida who regularly handle Limitation of Liability cases in Florida. (Southeastern Admiralty Law Institute directory)

The attorney you choose must be well versed in the proofs that are required for a claimant in a Limitation action in federal court. The attorney must also be familiar with the federal court procedures and Federal Rules of Civil Procedure which govern the conduct of attorneys and governs what evidence is admissible or prohibited. Limitation actions also often involve specialized maritime expert witnesses which are not seen in automobile cases and typical state court cases.

On some types of cases it may be possible to go it alone or have a general auto accident attorney try to learn the law, the federal forum, and the federal procedures, but in a Limitation action where you can lose your claim entirely if not done correctly or have the recovery severely limited in value, your best choice is to hire a maritime attorney well versed in this specialized type of case.

SUMMARY:

1. A Limitation action is filed in federal court when a boating or personal watercraft accident has caused injuries or property damage.
2. A Limitation action is typically initiated by an insurance company.
3. The endeavor of the insurer is to limit your recovery to the worth of the vessel or personal watercraft after the incident. (Sometimes the value of that post-accident vessel is close to zero.)
4. In a Limitation action the victims are called the “defendants” (or “claimants”, or “respondents”).
5. The federal judge sets a claim date. If you do not respond timely and correctly your claim can be permanently barred.
6. This is not the time to hire a general attorney. You need to hire a maritime attorney, and one that is experienced in Limitation actions.
7. If you do nothing your claim will eventually be defaulted and barred.