DENMARK Law and Practice Contributed by: Johannes Grove Nielsen, Camilla Søgaard Hudson, Lars Rosenberg Overby and Malthe Hersom Kløft, Bech-Bruun
3.2 International Conventions: Collision and Salvage Denmark is a party to the 2010 International Con - vention for Unification of Certain Rules of Law with respect to Collision between Vessels. This conven - tion is implemented under Chapter 8 of the Danish Merchant Shipping Act. As for salvage, Denmark is a party to the 1989 Inter - national Convention on Salvage and has incorporated the convention in Chapter 16 of the Danish Merchant Shipping Act. Denmark has also incorporated the 1974 York-Antwerp Rules in Chapter 17 of the Dan - ish Merchant Shipping Act. 3.3 Convention on Limitation of Liability for Maritime Claims Denmark is a party to the 1976 Convention on Limita - tion of Liability for Maritime Claims and its Protocol of 1996. The convention has been implemented in Chap - ter 9 of the Danish Merchant Shipping Act. 3.4 Vienna Convention on the Law of Treaties The 1969 Vienna Convention on the Law of Treaties is applicable in Denmark. Danish courts and authori - ties consistently apply the principles of the Vienna Convention when interpreting international treaties, including the 1976 Convention on Limitation of Liabil - ity for Maritime Claims. Thus, the Vienna Convention is generally regarded as binding upon Denmark under international law and is relied upon as an interpretative framework under Danish law. Denmark has entered a reservation stating that, with respect to states that have made a reservation regard - ing Article 66, Denmark does not consider itself bound by those provisions of Chapter V for which the Article 66 dispute settlement procedure will not apply due to the other state’s reservation. 3.5 Procedure and Requirements for Establishing a Limitation Fund The Danish Merchant Shipping Act (Sections 177 to 180 and Chapter 12) sets out the procedural rules for establishing a limitation fund.
According to these rules, a limitation fund may be constituted with the Danish Maritime and Commer - cial Court if: • arrest is applied for; • an action is brought; or • other legal proceedings are instituted in Denmark with respect to claims that, according to their nature, may be limited. The fund is set up by paying the limitation amount to the court, or by providing security for the amount at the same time as an order is issued. The court will set a notification deadline once the fund has been estab - lished. Claims that have not been notified in time can be notified until the court sets down the question of distribution for judgment. The fund shall be deemed as constituted for all the persons who may invoke limitation of liability, and to cover all the claims for which the limitation of liability applies. The fund shall only be available for payment of claims in respect of which limitation of liability may be invoked, including interest. The court shall, by court order, stipulate the size of the fund amount, as well as whether any security offered can be approved. The court order may stipulate that security shall also be provided for an additional amount to cover the costs of administering the fund (including costs awarded by the courts), as well as to cover any interest claims. The limitation fund is calculated with reference to the size of the vessel and the nature of the claims. The right to global limitation of liability exists, regard - less of the basis of liability in respect of claims arising from: • personal injury or damage to property occurring on board or in direct connection with the operation of the ship or with salvage operations; • loss resulting from delay in the carriage by sea of cargo, passengers or their luggage; • loss resulting from the infringement of rights other than contractual rights occurring in direct con -
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