Admiralty law is, in effect, the law of the sea. It governs everything from injuries to seamen and collisions between vessels to pollution. However, for purposes of business, the two chief concerns of admiralty law are dealing with cargo and personal injury claims at sea, and the way the law governs companies that run operations in national and international waters.

Federal courts have exclusive jurisdiction in admiralty and maritime law actions according to the United States code. However, a "savings to suitors" clause allows other lawsuits involving the same facts but not involving admiralty law to be brought to state court.

Cargo claims for shipping in international waters is covered by the Hague Rules, which is enacted in U.S. federal law by the Carriage of Goods by the Sea Act. International maritime law is mostly standardized; however some variations apply between countries.

If you deal with shipping or anything involving international waters, or you have employees who work on boats or docks, you should know that:

1. Ship owners are liable for cargo from loading to discharge, unless the case falls under an exception to liability. A ship owner is generally entitled to limit its liability to $500 per container.

2. Admiralty law is exceedingly complex and admiralty lawyers are among the most specialized in the United States. A maritime lawyer is a necessity for negotiating a complex contract involving shipping or a personal injury lawsuit involving an incident in water.

3. While admiralty lawyers may handle both lawsuits involving shipping and personal injury claims, they are different specialties within admiralty law. Know when you will need representation for either type of claim, and make sure you hire the right maritime attorney.

Action Steps

The best contacts and resources to help you get it done

Tips & Tactics

Helpful advice for making the most of this Guide

• Although maritime law is complex, a basic knowledge should be acquired to understand how it fits in with your business.
• Remember that maritime law can vary between countries. Be careful that you are covered no matter where you are shipping.
• Even if a business owner does not have a case under admiralty law, the 'saving the suitors' clause in federal law means they may be able to bring a case under a different law in state court.