LIMITATION OF LIABILITY FOR RECREATIONAL BOATS (Spring 90)

While some jurisdictions have not yet ruled on whether the provisions of 46 USC 183 which permit a maritime defendant to limit their liability to the value of the vessel after the accident are applicable to recreational boats, the number saying that statute is not applicable grows. In Kays v. Sunset Watersports, Inc., 704 F.Supp. 1057 (S.D. Fla. 1989), the court ruled the act did not apply to a Jet Ski which had been rented. The Jet Ski had run into a fishing boat.

It was held that the objective of the legislators in passing the Act was to make the Merchant Marine competitive in commercial shipping. Since recreational boats are not engaged in commercial activities, it was held that the Act did not apply. Plaintiff's brief is available from Association of Trial Lawyers of America.

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