In January 2023, we reported on the 2022 amendments to the Shipowners’ Limitation of Liability Act, 46 U.S.C. § 30501, et seq. (Limitation Act), wherein Congress removed “covered small passenger vessels” from the ambit of the Limitation Act’s protections pursuant to the Small Passenger Vessel Act (SPVA).

On August 14, the US Court of Appeals for the Fifth Circuit addressed these amendments for the first time and provided clarity on the meaning and scope of “covered small passenger vessels” in the case of M/V MS ADALYN v. Inland Dredging Co., L.L.C. Specifically, the Fifth Circuit considered who qualifies as a “passenger for hire.” This decision has serious ramifications for the maritime industry as it has curtailed the instances in which a work boat or a crew boat may seek limitation of liability.

Learn what the Fifth Circuit's first interpretation of the SPVA amendments means for maritime employers, vessel owners, and operators.