Oil Pollution of the Sea (Civil Liability and Compensation) Act, 1988

Liability of guarantor.

17.—(1) Where it is alleged that the owner of a ship is liable under section 7 for pollution damage as a result of any discharge of oil, and there is, at that time, in force in respect of that ship a contract of insurance or other security to which a certificate referred to in section 16 relates, proceedings to enforce a claim in respect of any damage caused by the discharge of oil may be brought against the guarantor.

(2) In any proceedings brought against a guarantor under this section, it shall be a defence, in addition to any defence affecting the liability of the owner, for the guarantor to establish that the discharge of oil in respect of which the proceedings are brought was due to the wilful misconduct of the owner of the ship.

(3) A guarantor may limit his liability under this section in like manner and to the same extent as an owner may limit his liability whether or not the discharge of oil in respect of which the proceedings are brought occurred without the actual fault or privity of the owner of the ship.

(4) Where both the owner of a ship and his guarantor each apply to the Court to limit his liability, any money paid into court in pursuance of either application shall be deemed to have been paid in also in pursuance of the other application.