I am directed, by Lord Stanley, to acknowledge the receipt of your letter and its inclosure of the 29th ultimo, respecting the liability of British shipowners in suits arising in foreign courts out of collisions at sea; and I am to acquaint you in reply, that Lord Stanley will not fail to give this question due consideration, and will communicate with you further on the subject after he has consulted the Lords of the Committee of Privy Council for Trade.
I am, Sir, your most obedient humble servant,
E. C. Egerton.
To W. S. Lindsay, Esq.
Foreign Office, 14th November, 1866.
Sir,
With reference to your letter of the 29th September last regarding the laws of the United States and of other foreign countries, with regard to the liability of British shipowners in cases of loss by collisions at sea, I am directed by Lord Stanley to inform you that his Lordship learns from the Lords of Trade that, by the common law of this country, and by the maritime law, as administered in our Admiralty Courts, the Shipowner was formerly personally liable to the whole extent of his fortune for any damage done by his ships through default of his servants. The legislature, however, long since passed statutes limiting the liability, and the limitation, with some variations, still continues.
It was, however, held that the statutes being municipal laws, did not affect cases where foreign ships were concerned, and where the collision or casualty happened on the high seas, but that such cases must be governed by the general maritime law of the world, which was assumed to be the same with our common law. This was, perhaps, too hastily assumed, inasmuch as most maritime countries adopted the principle of limiting the Shipowners’ liability much earlier, and to a greater extent than Great Britain.
The consequence was, that if a collision happened between two British ships, the British law of liability applied, and whichever might be in fault, the liability was limited. On the other hand, if a collision happened between a British and a foreign ship on the high seas, or between two foreign ships on the high seas, and the case came into our courts, then whichever was in fault, the liability was unlimited.
This law was unequal, but in no way specially injurious to the foreigner. The British ship, if in fault, was equally liable with the foreigner; and as the British ship is generally to be found at home, and as the British shipowner resides here, the British shipowner being thus more likely to be the defendant, was likely the more often to suffer.
The law was consequently altered by making the limitation of liability apply in all cases coming into our courts, whether the ships were both British or both foreign, or one British and one foreign.