What Is a Capped Fund?
Limited liability fund (Limitation fund), claims fund outside the scope of responsibility. A fund established in the courts by a party who intends to limit liability in accordance with Article 2 of the Limitation of Liability for Shipowners 1957 or Article 11 of the Limitation of Liability for Maritime Claims 1976
Limited liability fund
Right!
- Chinese name
- Limited liability fund
- Foreign name
- Limitation fund
- Content
- Funds will be allocated based on confirmed claims
- See
- Articles 213 and 214 of the Maritime Law
- Limited liability fund (Limitation fund), claims fund outside the scope of responsibility. A fund established in the courts by a party who intends to limit liability in accordance with Article 2 of the Limitation of Liability for Shipowners 1957 or Article 11 of the Limitation of Liability for Maritime Claims 1976
- Once established, the liability limitation fund is limited to compensation claims, so other litigation claims should be asserted separately, and plaintiffs seeking compensation from the fund must not take other legal measures against the defendant's other property. The fund is established by depositing a certain amount of security deposit or approved guarantee to the court. After the establishment of the fund, in accordance with the "concursus" principle, all legal proceedings concerning casualties that have already begun will be suspended, and all requests for casualties will be declared in the liability limitation procedure. At the end of the liability limitation process, the fund will be prorated based on confirmed claims (established claims).
- In our country, if the responsible person requests to limit liability in accordance with the provisions of the Maritime Law, a liability limitation fund may be established in a court of competent jurisdiction; after the responsible person establishes a liability limitation fund, any person who makes a request to liability shall not The property exercises any right; if the ship or other property of the person in charge who has established a liability limitation fund has been seized, or the fund creator has submitted a collateral, the court shall order the release or return it in time (see Maritime Law 213, 214). article).