Keeping Time in Maritime Claims: Limitation Periods and the Single Liability Principle

Following the apportionment of liability in a maritime collision case, the single liability principle provides for the quantum of the smaller recoverable claim to be deducted from the larger recoverable claim, leaving only one net balance to be paid by the net payor. In The CARAKA JAYA NIAGA III-11 [2021] SGHC 43, the Singapore High Court considered how the single liability principle interacts with limitation periods under shipping law. Specifically, in a case where the claim of the net payor against the net payee is time-barred, the Court found that the net payor cannot avail itself of the single liability principle to reduce its liability to the net payee.

In this Update, we summarise the key points of the Court’s decision and consider its impact on the management of maritime claims, including whether it will affect the application of limitation periods in the defence of set-off and in invoking limitation under the Convention on Limitation of Liability for Maritime Claims 1976.