The claimant, Dominator Ltd, applies for a general limitation decree pursuant to the Convention on the Limitation of Liability for Maritime Claims 1976 as amended by the 1996 Protocol thereto (LLMC 1996) which in its current form was given effect in the Isle of Man by the Merchant Shipping (Convention on Limitation of Liability for Maritime Claims) (Application) Order 2000 made under s 5 of the Merchant Shipping Act 1985 of Tynwald. For previous proceedings, see Dominator Ltd v Gilberson SL (CMI515) and Gilberson SL v Dominator Ltd (CMI516).

The issues for consideration are as follows:
(1) Have reasonable steps been taken to notify the defendants of these proceedings and have the defendants been given an opportunity to participate in this hearing?
(2) Is the claimant entitled to limit liability by the limitation decree under art 10 of the LLMC 1996?
(3) If so, how is the limitation fund to be calculated?
(4) Should the claimant be ordered to constitute a limitation fund and if so, should it be by payment into court or some alternative method?
(5) How should the limitation decree be advertised?
(6) How long should be given to anyone other than the named and served defendants to apply to the court to seek to set aside the limitation decree?
(7) What period should be fixed for the making of claims against the limitation fund?

Held: (1) Reasonable steps have been taken to effect service of the pleadings and the order made on 20 April 2011 on the defendants. No-one has appeared today on behalf of the defendants. However, reasonable steps have been taken to bring the existence of these proceedings and today's hearing to the notice of the defendants. They are clearly aware of these proceedings and this hearing today. The defendants have plainly had an opportunity to participate in these proceedings and in this hearing and to oppose the relief sought by the claimant. They have chosen not to do so.

(2) The claimant is entitled to limit its liability. Claims, whatever the basis of the liability may be, in respect of loss of or damage to property occurring on board or in direct connection with the operation of the ship and any consequential loss resulting therefrom are covered by the LLMC 1996. I have considered the terms of art 4 of the Convention. I have considered the evidence and have concluded that it has not been proved that the loss resulted from the claimant's personal act or omission committed with the intent to cause such loss or recklessly and with knowledge that such loss would probably result. 

(3) The effect of the limitation decree is to place a cap on the overall amount of the compensation recoverable from the owner of the vessel (and the insurers) in the event that liability is established in respect of relevant claims whatever the legal basis for that liability. The limit is calculated by reference to the tonnage of the vessel and applies to the aggregate of all claims arising out of the same incident. In the present case the vessel's tonnage was 69.75 tons. For any vessel of less than 300 tons, the limit is 500,000 Special Drawing Rights.

(4) The Claimant shall within 21 days provide security for payment of claims against which liability is limited by the provision of an irrevocable undertaking in writing by its insurers to the Court to make payment under the further direction of the Court.

(5), (6) and (7) The Claimant shall place a single advertisement in the London Gazette, the Isle of Man Examiner and La Vanguardia identifying the claim and specifying the decree made in this claim and further specifying: (a) a period of three months for the issue of applications by parties other than the named defendants to set aside the decree; and (b) a period of one year for the filing of claims to the Court for payment to be made pursuant to the irrevocable undertaking given by the claimant's insurers to the Court.