What are the rules governing liabilities of parties in case of collision?


1. One vessel at fault – The ship owner of such vessel shall be liable for all resulting damages.

2. Both vessels at fault – Each vessel shall suffer their respective losses but as regards the owners of the cargoes, both vessels shall be jointly and severally liable.

3. Vessel at fault not known – Each vessel shall suffer its own losses and both shall be solidarily liable for loses or damages on the cargo. (Doctrine of Inscrutable Fault).

4. Fortuitous event – Each shall bear its own damage.

5. Third vessel at fault – The third vessel shall be liable for losses and damages sustained.