No Right To Trial Where Limitation Fund Offered

In Birkenfeld v Kendall and Yachting New Zealand Inc [2008] NZCA 531 the New Zealand Court of Appeal has confirmed that, having established a limitation fund under legislation enacting the 1976 Convention on Limitation of Liability for Maritime Claims (LLMC), and having offered that fund to the plaintiff, the defendants are entitled to a permanent stay of the action, without admission of liability on their part. There will be no trial solely to determine the cause of a collision.

While the facts are unusual, the case is of interest given that the offer to pay the limitation fund brings finality to litigation without admission of liability and the burden of trial costs.

Background