THE NATURE AND JUDICIAL REVIEW STANDARDS

OF APPLYING FOR CONSTITUTION OF A LIMITATION FUND FOR MARITIME CLAIMS

――Korean SEKWANG Shipping CO. over applying for a constitution of a limitation fund for maritime claims

    The applicant applied to the court to constitute a limitation fund of maritime claims owing to its ship had suffered from a serious collision leading to the general average. But the opponent asked the court to reject the applicant’s application with the following reasons, firstly the administrative relationship between the applicant and the opponent was beyond the jurisdiction of Maritime Law; secondly the related fees generated by clearing the pollutants resulting from collision of ship did not belong to the statutory limitation claims; thirdly the applicant lose the right to constitute a limitation fund since that its ship was unseaworthy. However, the court ruled that it was the applicant’s legal right to constitute a limitation fund for maritime claims after the serious marine accident that leaded to the general average, and such right was not restricted by the acts that administration accounted administrative responsibility of the applicant by related laws and regulations. Constituting a limitation fund was governed by civil law while the concerned administrative responsibilities issues were governed by administrative laws. The civil liability generated by the general average resulting from ocean pollution by shipped chemicals was not listed as non-limitation claims in Chinese Maritime Law, and as for whether or not the applicant had the right to limit its maritime claims liability shall be identified by the court after the substantive trial. In this case, the applicant was qualified, and the related credits generated by the general average were not non-limitation claims specified by law. As a result, applying for constituting a limitation fund was in conformity with the provisions prescribed by law. Above all, in this case，the court shall rule to grant constituting a limitation fund by the applicant.