Time Limits for the Submission of Claims - Cargo Claims Under Bills of Lading - Other Contractual Claims - Negligence and Tort Claims - Collision Claims - Pollution Claims - Relevant Rules Applicable to Time Limits
Time Limits for the Submission of Claims
In most jurisdictions different categories of civil claim may be subject to a variety of time periods in which claims must be made. This is to ensure that defendants are made aware of claims within a reasonable time from the incident complained of. Time limits are imposed in various ways; by local statute, by international convention and by agreement in contracts. If a claimant fails to bring his claim within the prescribed time his right to claim may be barred.
Because of conflicts between local laws, international conventions and contractually agreed time limits, and between time limits applying in different jurisdictions, the issue of which time limit may apply in a particular case can be a complicated one. In the same way courts in different jurisdictions differ in their use of discretion in allowing claims that have been made outside the time limit to be pursued.
In spite of these complicated legal questions late claims can often be defeated by asserting a time bar defence. Always check the time limit which applies to a particular claim when it is notified. Simple notification of a claim may not be sufficient to protect a time bar; the claimant must usually start legal proceedings within the specified time to protect his rights to claim. It is also important to remember to protect any indemnity rights that you may have against third parties in an appropriate way. If you have any doubts about the position make sure that you check with the Club and/or the local correspondent.
In certain cases the Club may agree with the Member that it is appropriate to agree an extension of the time bar period with the claimant, perhaps in order to provide time for a commercial settlement to be negotiated without forcing the claimant to make a formal claim in Court to protect the time limit and thereby incur unnecessary expense. However, you should not agree extensions of time without discussing this with the Club first, nor should you waive the expiry of a time bar. Doing so could prejudice your rights of recovery under the Club rules.[See Club Rules 28 ii and iii]
Time limits which usually apply to the various categories of claims discussed in this guide are listed below. Remember to check applicable jurisdictions and contractual terms and consult the Club in any cases of doubt.
Cargo Claims under Bills of Lading
Under the Hague and Hague-Visby Rules a one year time limit applies from the time when the cargo was or should have been (in the case of total loss) delivered to claims for loss or damage to cargo. The limit may not apply to claims associated with the loss, for example general average claims. The time limit under the Hamburg Rules is 2 years but note that the Club Rules assume that the Hague or Hague-Visby Rules will apply.
Other Contractual Claims
The time specified in the applicable contract, for example a charter party. This may be only a matter of a few weeks or months. If no time is specified then statutes may provide for a time limit (for example English law stipulates a 6 year time bar).
Negligence and Tort Claims
Different jurisdictions provide for different time limits. The time limit for tort claims in general under English law is 6 years. For personal injury claims under English law a time limit of 3 years generally applies but the Court has considerable discretion. In the United States a three year limit also applies, subject to exceptions. Under the Athens Convention relating to carriage of passengers, however, the time limit for passenger injury or death claims is 2 years from the date of disembarkation.
Collision Claims
Again jurisdictional issues will be very important. Under the Collision Convention, and under English law which often applies by agreement between the parties in claims arising on the high seas, the time limit is 2 years form the date of the incident. However, local law may be very different.
Pollution Claims
Under the Civil Liability Convention claims must be brought within three years of the date of the damage, and not more than 6 years from the date of the incident. Under the United States Oil Pollution Act 1990 claims must be brought within 3 years from the date of the loss or the discovery of the connection between the loss and the discharge of pollution.
Relevant Rules
Class I Rule 28 ii General Terms and Conditions - Class I Rule 28 iii Requirement to Notify the Club
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