Small Workboats Under 100 GT May Lose Limitation Act Protection After Adalyn
August 17, 2026
Types : Alerts
The Fifth Circuit recently affirmed a decision by the Southern District of Texas (Matter of M/V MS Adalyn) finding that the US Limitation of Liability Act of 1851 does not apply to a workboat which had been chartered by a dredging contractor to transport its workers and equipment.
The court found that because the workboat was under 100 gross tons, was carrying more than six people, and the charterer of the vessel paid for its use, that was sufficient for the vessel to qualify as a “covered small passenger vessel” that is excluded from the Limitation Act by the 2023 Amendment that was enacted after the 2019 M/V CONCEPTION dive-boat fire off the coast of California.
This result is somewhat surprising because commercial workboats used to carry workers and equipment in the context of a construction project are not commonly considered to be passenger vessels in the industry. Moreover, the fact that the workers themselves need not individually pay the vessel for passage in order for the vessel to qualify as a passenger vessel is unexpected.
The impact of this decision is that any vessel under 100 gross tons carrying more than six people is now at real risk of being classified as a “covered small passenger vessel” placing it outside the Limitation Act altogether, regardless of the actual role the vessel is being utilized for or however the payment is structured (flat rate, per-diem, etc.), so long as it relates to the vessel’s use to carry those personnel.
Consequently, we recommend reviewing charter and day-rate arrangements for sub-100 gross ton vessels used to transport six or more contractor or client personnel to assess whether reliance on the Limitation Act remains sound for those operations. Contractual risk allocation and coverage structuring may need to carry more weight than previously assumed for this class of vessel.
For further information regarding this decision, please contact Jon Werner of Montgomery McCracken’s Maritime and Transportation Industry Group.