3
.A. 3Jouse of 3Representatibes
Committee on
dMerdjant Aarine ab fijeries
room 1334, longinortf 3fouse Ofie Jguilbing
uwaington, B.C. 20515
November 30, 1982
MEMORANDUM
TO: Members, Subcommittee on Panama Canal/Outer Continental Shelf
FROM: Subcommittee Staff
RE: Hearing on Vessel Damage Claims Against the Panama Canal
Commission, December 2, 1982
INTRODUCTION
On Thursday, December 2, 1982, at 10:00 am, in 1334 Longworth, the
Panama Canal/Outer Continental Shelf Subcommittee will hold a hearing
on vessel damage claims against the Panama Canal Commission. The
hearing will focus primarily on three areas:
(1) The status of pending vessel damage claims exceeding $120,000;
(2) The Commission's accounting methods in setting aside toll
revenues to pay vessel damage claims; and
(3) The possible amendment of the Panama Canal Act of 1979 to
change the Commission's authority to pay claims.
CURRENT LAW
The Panama Canal Act of 1979 (the Act), Public Law 96-70, directs
the Panama Canal Commission (the Commission) to "adjust and pay"
claims for damage to any vessel, its cargo, crew, or passengers that
occurs while the vessel is passing through the Panama Canal. The Act
divides these claims into two categories -- inside the locks and
outside the locks.
Under section 1411 of the Act, 22 U.S.C. 3771, if a vessel is
damaged while inside the locks, there is no limit on the amount the
Commission may award, although the award must be reduced in proportion
to the contributory negligence of the vessel master, crew, or
passengers. However, since Commission employees exercise virtually
total control over a vessel while it is inside the locks, the
Commission is essentially an insurer of all claims for damage arising