CYPRUS Law and Practice Contributed by: Kyriacos Scordis and Sofi Mylona, SCORDIS PAPAPETROU & Co LLC
3.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages Pursuant to the LLMC Convention, a ship-owner (defined in the LLMC as the owner, charterer, manager and operator of a seagoing vessel) may limit their liability for the claims set out in Article 2 of the LLMC Convention, which includes claims for loss or damage to property. The limitation amounts of each incidence are stated in Articles 6 and 7 of the LLMC Conven - tion. However, a person shall not be entitled to limit their liability if it is proved that the loss resulted from their personal act or omission committed with the intent to cause such loss or committed recklessly and with the intent that such loss would probably result. The Merchant Shipping (Ship-Owners’ Insur - ance for Maritime Claims) Law of 2012, which transposed Directive 2009/20/EC on insurance against maritime claims, provides that an opera - tor of a vessel (being the owner of a seagoing ship or any other person, such as the manager or the bareboat charterer, who has assumed responsibility for operating the ship from the ship-owner and who, on assuming that respon - sibility, has agreed to undertake all the duties, responsibilities and commitments that are imposed by that Law) shall be required to have insurance covering that ship for maritime claims subject to limitation under the LLMC Convention for an amount, for each incident, equal to the relevant maximum amount for the limitation of liability as laid down in the LLMC Convention, the existence of which is to be proved by a valid certificate carried on board the ship issued by the relevant insurance provider. Furthermore, Section 502 of the UK Merchant Shipping Act 1894, which applies in the legal system of Cyprus pursuant to the Courts of Jus -
The UK Bills of Lading Act of 1855 also applies in Cyprus by means of Articles 19 and 29 of the Courts of Justice Law of 1960 (Law No 14/1960), and the Hague Rules are applicable in Cyprus through the Carriage of Goods by Sea Law, Chapter 263. However, the Hamburg Rules and the Rotterdam Rules have not yet been ratified in Cyprus. 3.2 Title to Sue on a Bill of Lading In Cyprus, the title to sue on a bill of lading typi - cally resides with the holder of the bill itself. The holder is the party in possession of the bill of lad - ing, which serves as evidence of the contract of carriage and ownership of the goods described in the bill. In many cases, the bill of lading may be negotiable, meaning that it can be transferred to another party, thus granting that party the right to sue. In other words, Cyprus law recognises that where a bill of lading allows the assignment (transfer) of the underlying rights (ie, negotiable) an assignment of title gives the recipient the right to sue on a bill of lading. It is important to note that legal principles regarding bills of lading and the assignment of rights may vary based on specific terms within the document and the context of the transaction. Thus, where there is a right to assign, and upon assignment of all relevant rights, the holder transfers their rights under the bill to another party including the right to sue. Such an assign - ment should be documented by, for example, an endorsement on the bill of lading itself.
155 CHAMBERS.COM
Powered by FlippingBook