Grotius and Limited Liability

Abstract Grotius’s ideas on proportionate and limited liability, as mentioned in the Inleidinge and De iure belli ac pacis, were novel in comparison to the civilian doctrine of his time. Grotius drew from sources of local law and statutes regarding maritime law but was nonetheless original in his interpretations. Grotius proposed to consider the liability of co-owners of ships (reders, exercitores), who acted as organizers of maritime expeditions, and of others that were participating in these expeditions, as broad. At the same time, their liability was limited to the maximum of the value of the ship and cargo. In this regard, Grotius’s conceptions hinged on a view of a ship’s voyage as engendering a community of risk among all stakeholders. However, in spite of the underlying connections, Grotius did not eradicate all inconsistencies which the originality of his combinations brought forward.