Board of Trade, Whitehall,
25th February, 1867.
Sir,
With reference to your letter of the 29th September, 1866, addressed to the Secretary of State for Foreign Affairs, and to previous correspondence upon the subject of the law of the United States as affecting the liability of the Shipowner in cases of loss by collision at sea, I am now directed by the Board of Trade to transmit to you the accompanying copy of a despatch and inclosures received through the Foreign Office from her Majesty’s Minister at Washington upon this subject.
I have the honour to be, Sir,
Your obedient servant,
Thomas Gray.
To W. S. Lindsay, Esq.,
Manor House, Shepperton.
(Copy.—M. 1268.)
Washington, 23rd January, 1867.
My Lord,
In reply to your Lordship’s despatch, marked “Commercial No. 7,” of the 14th November last, on the liability imposed by the laws of the United States on Shipowners in cases of collision, I have the honour to enclose copy of an opinion of Mr. Carlisle, the legal adviser of this Legation.
Your Lordships will gather from it that the principle of limited liability has been adopted by the laws of the United States, and is applied in the Federal courts. But the injured party may apply to a State court if the defendant is within its jurisdiction, and bring an action on the case, and it is doubtful whether such a court would limit the measure of damages by the principles contained in the Act of Congress.