A Historical Analysis on the Limitation of Carriers' Liability

운송인(運送人)의 손해배상책임제한(損害賠償責任制限)에 관한 역사적(歷史的) 고찰(考察)

On the contrary to the general principle of private law, carriers' liability for passengers and cargo owners have been quantatively limited in some cases. The author traces the rule of liability limitation in the law of Korea and United States to verify two hypotheses. The first hypothesis is that the rule of liability limitation has been introduced to motivate investment when new technology with high risk has been adopted in business. The second hypothesis is that the rule of liability limitation can be maintained only when damages have been fully compensated. The former is a necessary condition for liability limation, and the latter sufficient condition. There are strong evidences for the first hypothesis. Navigation or aviation, artificial satellite lauching, urban transportation system are good examples. The second hypothesis is supported by the fact that there have been continuous controversies on the Warsaw System, including the failure of ratification of Montreal Additional Protocols No.3 & 4 by the U.S. Senate and voluntary removal of liability limitation by the Japanese airline companies. Loss of cargo can be compensated fully, but damages from personal injury and death not. The value of human body and life is not easy to be estimated. Passengers, moreover, do not usually buy insurance for accidents in travel. Passengers do not accept insurance premium as the cost of being whole and alive. They do not accept accident rates realistically. They have no bargaining power in dealing with insurers. The rule of liability limitation in personal losses would not be supported in future because damages have not fully compensated.