The language for the proposed Justice for Victims of Foreign Vessel Accidents Act (Bill) was released on Sept. 11, 2024. As discussed in Holland & Knight's previous blog post, "Foreign-Flagged Vessels Beware," Sept. 9, 2024, the Bill will increase the liability for foreign-flagged vessels up to 10 times the dollar value of the vessel and its freight then pending.
In the Aug. 15, 2024, press release issued by Rep. John Garamendi (D-Calif.), there was loose language concerning the scope of "cargo" being included in the Bill in an effort to increase the dollar value of a Limitation Fund. The language of the bill did not mirror the press release, and the value of the vessel and "pending freight" language was maintained.
However, there is a bombshell "claims subject to limitation" proposal to exclude personal injury and wrongful death claims by persons who are not crewmembers or passengers of the vessel. This exclusion from limitation is not capped. The shipping industry and its marine insurers and reinsurers can readily imagine the implications of this proposed bill. Notably, this language was not included in the Aug. 15, 2024, press release and was instead inserted into the proposed Bill on Sept. 11, 2024.
Attorneys from Holland & Knight's Maritime Team, Structured Finance Team and Public Policy & Regulation Group will continue tracking this Bill development and the regulatory implications for impacted clients.
