Shipping 2025

MALTA Law and Practice Contributed by: Ann Fenech, Adrian Attard, Lara Saguna Axiaq and Martina Farrugia, Fenech & Fenech Advocates

• loss or damage to luggage – from the date of disembarkation or from the date when disem- barkation should have occurred, whichever is later. Limitation of Liability in Respect of a Passenger’s Claims Under Subsidiary Legislation 234.16 of the Laws of Malta, a ship-owner may limit their liability in respect of a passenger’s claims to claims for loss of life or personal injury, in addition to prop - erty claims, which mirror those found in the 1996 LLMC Protocol. Malta has exercised its discretion allowed under the Convention and has determined that, for a ship with a tonnage not exceeding 300 tons, the limitation will be 500,000 Units of Account. Maritime Lien or Maritime Claim A claim for indemnity for a personal injury of a passenger would not attract a special privilege under Maltese law; however, it may qualify as a maritime claim in cases where the “relevant per - son test” is satisfied in accordance with Article 742D of the COCP. 6. Enforcement of Law and Jurisdiction and Arbitration Clauses 6.1 Enforcement of Law and Jurisdiction Clauses Stated in Bills of Lading The Maltese courts will largely recognise and enforce a law and jurisdiction clause stated in bills of lading. However, if it is shown that there is a closer connection with Malta, and where the law and jurisdiction clause is included in a document that has not been negotiated by the parties and/or is presented post facto, the court may be swayed to deviate from the clauses in

the bills of lading in favour of Maltese jurisdic - tion (naturally, provided that the Maltese courts would have jurisdiction to determine the matter). 6.2 Enforcement of Law and Arbitration Clauses Incorporated Into a Bill of Lading A law and arbitration clause in a charterparty that has been incorporated into the relevant bill of lading will not automatically be recognised by the Maltese courts unless it satisfies certain criteria. In Northeastern Breeze , the court held that a generic clause incorporating the terms of the charterparty would not suffice, and that the arbitration clause would have to be specifically incorporated into the bill of lading for this to be given effect, or specific reference to its applica - bility to the bill of lading would have to be made in the charterparty. This is a position borne out of common law and commercial practice. This is also evident from the Arbitration Act, Chapter 387, of the Laws of Malta, which pro - vides in Article 2(c) that “an arbitration agree - ment is also concluded by the issuance of a bill of lading, if the latter contains an express refer - ence to an arbitration clause in a charterparty”. 6.3 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards The 1958 New York Convention on the Recogni - tion and Enforcement of Foreign Arbitral Awards is applicable in Malta. The process by which a foreign arbitral award can be registered in Malta is set out in the Arbitration Rules, Subsidiary Legislation 387.01. 6.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction As previously explained, a vessel may be arrested in rem in Malta by means of a warrant of arrest issued on any of the grounds listed

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