Hong Kong Ordinances

MERCHANT SHIPPING (LIABILITY AND COMPENSATION FOR OIL POLLUTION) ORDINANCE - SECT 10

Limitation actions

(1) Where the owner of a ship has or is alleged to have incurred a liability
under section 6 he may apply to the court in accordance with rules of court
for the limitation of that liability to an amount determined in accordance
with section 9.

(2) If on such an application the court finds that the applicant has incurred
such a liability and is entitled to limit it, the court shall determine the
limit of the liability and direct payment into court of the amount of that
limit, and shall then-

   (a)  determine the amounts that would, apart from the limit, be due in
        respect of the liability to the several persons making claims in the
        proceedings under this section; and

   (b)  direct the distribution of the amount paid into court (or, as the case
        may be, so much of it as does not exceed the liability) among those
        persons in proportion to their claims, subject to the following
        provisions of this section.

(3) A payment into court of the amount of a limit determined under this
section shall be made in Hong Kong dollars and-

   (a)  for the purposes of converting such an amount from special 
        drawing rights into Hong Kong dollars the Monetary Authority may
        certify, in Hong Kong dollars, the respective amounts which are to be
        taken as equivalent for a particular day to the sums expressed in
        special drawing  rights in section 9;

   (b)  a certificate signed by or on behalf of the Monetary Authority under
        paragraph (a) shall be conclusive evidence of the matters contained
        therein and shall in legal proceedings under this Ordinance to which
        it relates be admissible on its production and without further proof.
        (Amended 82 of 1992 s. 44)

(4) No claim shall be made in proceedings under this section except within
such time as the court may direct or such further time as the court may allow.

(5) Where any sum has been paid in or towards satisfaction of any claim in
respect of the pollution damage to which the liability referred to in
subsection (1) extends-

        (a)	by the owner or the person referred to in section 17 as "the 
insurer"; or

   (b)  by a person who has or is alleged to have incurred a liability,
        otherwise than under section 6, for that damage and who is entitled to
        limit his liability in connection with the ship by virtue of the
        Merchant  Shipping (Limitation of Shipowners Liability) Ordinance (
        Cap 434), (Amended 55 of 1993 s. 30) the person who paid the sum
        shall, to the extent of that sum, be in the same position with respect
        to any distribution made in proceedings under this section as the
        person to whom it was paid would, apart from this subsection, have
        been, and the distribution shall be made accordingly.

(6) Where the owner who incurred the liability referred to in subsection (1)
has voluntarily made any reasonable sacrifice or taken any other reasonable
measures to prevent or reduce pollution damage to which the liability extends
or might have extended he shall be in the same position with respect to any
distribution made in proceedings under this section as if he had established a
claim in respect of the liability for an amount equal to the cost of the
sacrifice or other measures, and the distribution shall be made accordingly.

(7) The court may, if it thinks fit, postpone the distribution of such part of
the amount to be distributed as it deems appropriate having regard to any
claims that may later be established before a court outside Hong Kong.
(Enacted 1990)