Operating a maritime business can be complicated. With supply chain problems, weather-related challenges, worldwide obstacles and other issues, it can be difficult to handle everything efficiently. One concern that has been ongoing is union and labor disputes. Negotiations are often difficult and even if a company is not involved in a back and forth with a labor union, it can get caught in the middle of ongoing disagreements between other entities. Union decision to hold back workers A recent decision by a dockworkers union gives an indication as to what maritime businesses can face as they tr ..read more

There are two main regulations that address maritime issues in the United States. They are the Jones Act and the Longshoremen’s and Harbor Workers’ Compensation Act (LHWCA). Maritime workers may file claims under both. Regulations The Jones Act requires that all goods transported by water between U.S. ports must be carried on vessels that are built, owned and operated by U.S. citizens. It was created to maintain the U.S. domestic maritime industry, for security and economic reasons. It allows eligible workers to file a lawsuit against their employer for injuries or death caused by the employer ..read more

One important topic to keep in mind when choosing the type of business that you want to form is whether you will be personally liable for the actions of the business. Personal liability can expose you to significant financial ramifications should your business go bankrupt or be sued. There are some business structures that shield you from personal liability that might be worth considering. Business types that leave you personally liable Some types of businesses leave owners personally liable for the debts and actions of the business. Two of these business structures are sole proprietorships an ..read more

On December 23, 2022, the Small Passenger Vessel Act (SPVA) was signed into law carving out small vessels from the protection of the Limitation of Liability Act of 1851 and thereby exposing them to liability for any and all losses resulting from a maritime accident. What is a small passenger vessel? The SPVA defines these vessels as weighing at least 100 tons and not carrying in excess of (i) 49 passengers on an overnight domestic voyage or (ii) 150 passengers on trips that are not overnight domestic voyages. The Limitation of Liability Act of 1851 This bill, now the subject of the SPVA carveo ..read more

Driven by unions’ quest for more workers under their wing and a political impetus to disrupt the gig economy of companies like Uber, Lyft and DoorDash, a new bill is set to shake up many businesses in the transportation industry. Gov. Gavin Newsom signed California Assembly Bill 5 (AB5) into law on September 18, 2019. Trucking companies were initially exempted from the law by federal court injunction but the injunction was lifted on June 30, 2022. AB5 restricts the ability of independent contractors to retain their independence and forces these drivers into employee status. On one side of the ..read more

Perhaps your small business is ready to expand, and you’re thinking the best way to do that is by purchasing another small business. How can you determine a fair price? Valuation is difficult in all kinds of purchases, but can be especially tricky in the purchase of a business. When valuing a home, experts generally compare the home to similarly-sized homes that have sold recently in the neighborhood. With that information, they can estimate the fair market value. This method doesn’t work as well for businesses. There are just too many variables involved. Instead, valuation experts rely on sev ..read more

Californians see and use a variety of transportation modes every day. These modes range from taxi cabs to planes, trains, ships and semi-trailer trucks. From a legal standpoint, these transportation modes fall into two broad categories: private or contract carriage and common carriage. The difference between the two classes of carriers depends upon one salient fact about how they operate: a common carrier must accept cargo or passengers from anyone who needs transportation and is willing (and able) to pay for it, and a private carrier only accepts passengers or freight from a specified shipper ..read more

When a business owner first starts their maritime business, they often have plans to grow the business over time. However, if the business is not as successful as they hoped it would be, an owner may choose to walk away from the business they built and transfer the ownership of the business to someone else. Transferring your maritime business may require you to: Sell the business Sell your shares to business partners Lease the business with the option to buy in the future Gift the business to another party How can an attorney help me transfer ownership? Transferring business ownership may seem ..read more

Moving products in and out of California is something that happens every day, but it is also a very complex system. It involves different carriers that transport over both land and sea. However, the only thing that matters in the shipping industry is that the products get from their original destination to their final destination. There are many things that can go wrong while shipping products over thousands of miles. Sometimes, products are damaged or lost along the way. This can be very detrimental to the companies that are expecting the shipment that they purchased. Basics of the Carmack Am ..read more

Many California residents enjoy a lucrative and exciting career in the maritime industry. However, maritime work carries a higher risk of injury and death than many other industries, and because of that, there are laws to protect workers and their families. One of these laws is the Death on the High Seas Act (“DOHSA”). This law allows family members of a seaman killed in international waters to recover damages. The number of damages varies with each case but is meant to be a fair amount of compensation for the loss. The purpose of DOHSA is to encourage maritime employers to maintain a safe wor ..read more