The Limitation of Liability Act of 1851 (LOLA) 46 U.S.C. Section 30501 et seq., also known as the Limitation Act or the Shipowner’s Limitation of Liability Act of 1851, is a statute that permits an owner of a vessel to seek to have his or her exposure be limited to the value of the vessel and freight earned at the end of the voyage for damage claims arising from a maritime casualty. The act was passed in 1851 to promote ongoing maritime activities by protecting vessel owners with liability in excess of the value of the vessel.

A limitation proceeding is commenced in federal court by the shipowner or charterer of the vessel by filing a complaint seeking exoneration or limitation of liability. A shipowner must comply with Rule F, which requires a shipowner to file a complaint within six months after receipt of a claim. Rule F also requires the shipowner to deposit the value of the vessel with the court.

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