SMA’s Post

Discover the full legal analysis of the #DaliShipAllision case and explore how century-old maritime laws like General Average, Salvage and limitation of liability come into play. To understand who bears the financial burden in such catastrophic maritime events, read the detailed blog now! 👉 Check out the blog here: https://lnkd.in/dBEjPZS8 #DaliShipAllision #MaritimeLaw #GeneralAverage #Salvage #LimitationOfLiability #MaritimeEvents #LegalAnalysis #ShippingIndustry #MaritimeInsurance #SeaAndBeyond

Attorneys Julie Elise Maurer, Carlos Rodriguez, and Julia Bonestroo Banegas share an update on Baltimore's Key Bridge Collapse... Court proceedings have begun to determine liability for the M/V Dali incident. Owners Grace Ocean Private Limited and managers Synergy Marine PTE LTD filed a petition for exoneration or limitation of liability. Under the Limitation Act, the exact amount of liability is not determined yet, but the interim stipulation for value and stipulation for costs under the act has been accepted by the court for $43,670,000. In Part II of our series, learn more about the Limitation Act and next steps for cargo interests: https://ow.ly/32lV50RcKgU #BaltimoreBridge #oceantransportation #supplychain

Understanding the limited liability clause in contracts is essential for protecting a business' interests. Here’s a simplified guide: 1. Covered Damages: Specifies what types of damages are limited, ensuring clarity on financial exposure. 2. Excluded Damages: Excludes indirect, punitive, consequential, and other specified damages to manage risk effectively. 3. Scope of Limitation: Determines if the clause applies broadly or only to specific sections of the agreement, tailoring protection. 4. Applicability to Parties: Clarifies if the limitation extends to affiliates, employees, agents, or subcontractors, ensuring comprehensive coverage. 5. Cap for Liability: Sets a maximum liability amount, whether a Rupee figure, percentage of fees, or multiple, to mitigate financial risks. 6. Statute of Limitations: Includes a timeframe, typically one year, for filing claims, maintaining clarity on legal recourse. 7. Triggering Liability: Specifies conditions under which liability is activated, ensuring fair and consistent application. 8. Third-Party Claims: Determines if the limitation extends to claims brought by third parties, safeguarding against unforeseen liabilities. 9. Survival Clause: Ensures that the limitation of liability remains enforceable even after the agreement ends, providing long-term protection. #ContractLaw #ContractDrafting #LimitedLiabilityClause

The Truth About Indemnity Clauses It’s not always about what’s in the contract, but what’s hidden in the fine print. Recently, a client handed me a contract they were about to sign, thinking everything was in order. But here’s what I found buried deep in the legalese: Clause: ‘The client agrees to indemnify, defend, and hold harmless the company from any and all claims, damages, losses, liabilities, costs, and expenses (including legal fees) arising out of or related to the project, including third-party claims, regardless of fault.’ I turned to the client and said, "This means if something goes wrong, you could be held responsible for covering all legal costs and damages—even if it wasn’t your fault." Their response? "I had no idea!" My advice: Indemnity clauses can expose you to serious financial risks. In simple terms, if anything happens—even something completely out of your control—you might end up paying the price. Make sure to always negotiate such clauses and limit your liability to protect yourself. Takeaway: Indemnity clauses are often overlooked, but they can put you in a vulnerable position. Always get legal advice before signing, and know what you're truly committing to. #ContractReview #IndemnityClause #ProtectYourself #LegalAdvice #HiddenRisks #LawyerLife

With slip-and-trip claims on the rise, property owners must stay vigilant about their legal responsibilities. A recent ruling in Ngwenya v Accelerate Property Fund highlights the importance of proactive safety measures to avoid liability. The key takeaway? Clear disclaimers and regular inspections can make all the difference. Dive into our breakdown of this case to better understand how to protect your business from potential claims. 👇 https://lnkd.in/d-_nnMi5? #LPM #PropertyLaw #Liability #LegalInsights

If you are a transactional attorney (or even if your not), I recommend following Brittany Leonard for practical and easy to digest tips! #contracts

Difference Between Indemnity and Guarantee Under Contract Indemnity and guarantee are often used interchangeably, but they represent distinct legal concepts with different implications for parties to a contract. Understanding the key differences is crucial for managing risks and protecting the interests of parties. What is indemnity in a contract- through indemnity one party promises to save the other from loss caused to him by the conduct of the promisor himself or by the conduct of any other person. In a contract of indemnity, a promisee acting within the scope of his authority is entitled to recover from the promisor all damages and all costs which he may incur whereas A contract of guarantee, on the other hand, is a promise whereby the promisor promises to discharge the liability of a third person in case of his default. The person who gives the guarantee is called surety. The person in respect of whose default, the guarantee is given is the principal debtor and the person to whom the guarantee is given is the creditor. Anything done or any promise made for the benefit of the principal debtor may be a sufficient consideration to the surety for giving the guarantee.

This is exactly why we regularly recommend striking Prevailing Party clauses in contracts!

Legal Jargon Decoded: 'Indemnity' explained in simple terms. Indemnity is a legal concept that means one party agrees to protect another from potential losses or damages. In business contracts, indemnity clauses help define who is responsible for covering specific costs if something goes wrong.  Understanding indemnity is key to managing risk and setting clear expectations in agreements. #SernaLegalServices #LegalJargonDecoded #Indemnity #BusinessContracts #RiskManagement

How can a prevailing party clause cost you $3 million, and is it covered under your professional liability policy? Find out more in Victor’s latest article: Hidden Contract Risks: Why Prevailing Party Clauses Create Coverage Concerns. https://lnkd.in/gBgd6wPA