Landmark victory for P&I industry

Ed Mills-Webb and Rob Collins, of Clyde & Co, review a significant decision for ship owners and their P&I Clubs

In what is being hailed as a considerable success for the P&I industry the Court of Appeal ruled on 6 March 2014 that a limitation fund can now be constituted by way of a letter of undertaking (LOU) given by a P&I Club, as opposed to a cash payment into court.