NIGERIA Law and Practice Contributed by: Adedoyin Afun and Michael Abiiba, Bloomfield LP
2.4 Procedure and Requirements for Establishing a Limitation Fund Where an eligible party (as previously stated) anticipates that a claim is likely to be made against them by any other party under any mari - time law, including the MSA, they may apply to the FHC to determine whether their liability(ies) may be limited under law and the extent of the liability. The AJPR provide that a limitation of liability pro - ceeding shall be commenced by filing an origi - nating summons alongside an affidavit, copies of all the exhibits to be relied upon, and a writ - ten address at the registry of the FHC. Such an action is commenced as an admiralty action in personam against at least one of the (possible) claimants in a maritime claim (as a defendant), who must be served before the case may be set down for hearing or determination given in default of appearance. After determination of the applicant’s entitle - ment to a limitation of its liability, the court may order (i) the constitution of a limitation fund for the payment of claims in respect of which the applicant is entitled to limit their liability, and (ii) advertisement of its determination to allow any- one with a maritime claim against the vessel or any other parties previously named to apply to set aside, vary the court’s determination or lodge its interest. The order for the constitution of the limitation fund would also specify the method of calcu - lating the fund, which is usually based on the tonnage of the vessel and the applicable limit as prescribed in the MSA. It is not required to provide a deposit in relation to a constituted limitation fund.
• the NIMASA Act. 2.3 1976 Convention on Limitation of Liability for Maritime Claims The LLMC (and its 1996 Protocol) are applicable in Nigeria. Pursuant to Section 335(1)(f) of the MSA, parties who may limit their liability for mar - itime claims, under the MSA, are ship-owners (including the owners, charterers, managers and operators of a ship), salvors and their insurers. Section 352 of the MSA provides for claims to be subject to limitation of liability, and these include: • claims in respect of loss of life or personal injury or loss of or damage to property, occurring on board or in direct connection with the operation of the ship or with salvage operations, and consequential loss resulting therefrom; • claims in respect of loss resulting from delay in the carriage by sea of cargo, passengers or their luggage; • claims in respect of the removal, destruc - tion or rendering harmless of the cargo of the ship; and • claims in respect of floating platforms con - structed for the purpose of exploring or exploiting the natural resources of the seabed or the subsoil thereof. The increased liability for maritime claims, as provided in the amendment to the 1996 Pro - tocol which entered into force on 8 June 2015 (the “Protocol Amendment 2015”), is inapplica - ble in Nigeria because Sections 357 of the MSA expressly state the limits under the 1996 Pro - tocol.
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