Article 97 of the Saudi Commercial Maritime Law
المادة 97 من النظام البحري التجاري · الفصل الأول: المالك والمجهز
If the ship's owner pays one of the debts before the compensation sums are distributed, he is subrogated to the creditor to the extent of what he paid, and the court may, at his request, hold back part of the sums for a debt he proves he may become liable for.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا وفى مالك السفينة أحد الديون التي يُجرى التوزيع بينها قبل توزيع المبالغ المخصصة للتعويضات، جاز له أن يحلّ محل صاحب الدين في التوزيع بمقدار المبلغ الذي وفاه.
2- للمحكمة -بناء على طلب مالك السفينة- أن تحتفظ لمدة تحددها بجزء من المبالغ المخصصة للتعويضات للوفاء بدين يُثبت مالك السفينة أنه قد يلتزم بالوفاء به.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 97 explained in plain English
This article regulates two matters concerning the distribution of the sums set aside for compensation in the context of limiting the ship owner's liability:
First: subrogation. If the ship's owner has paid one of the debts among which the distribution is made, before the sums set aside for compensation are distributed, he may be subrogated to the holder of that debt in the distribution to the extent of what he paid. The owner does not lose what he paid in advance, but takes the place, at distribution, of the creditor he paid.
Second: holding back part of the sums. The court may, at the request of the ship's owner, hold back for a period it determines part of the sums set aside for compensation, to meet a debt that the owner proves he may become liable to pay. This helps where there is a potential claim that has not yet been filed or decided.
This is linked to Article 96, which makes limitation apply to the balance after set-off and bars steps against the owner's property if the compensation sum is placed at the creditor's disposal or a guarantee acceptable to the court is provided. To manage these proceedings, consult a lawyer who specializes in maritime and commercial law.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 97 of the Saudi Commercial Maritime Law
What happens if the ship's owner pays a creditor before the compensation is distributed?
He may be subrogated to that creditor in the distribution to the extent of the amount he paid.
Can part of the compensation sums be held back for a potential claim?
Yes. At the owner's request the court may hold back for a period it determines part of the sums, to meet a debt that the owner proves he may become liable to pay.
More articles on Liability of the Ship Owner and Operator
- Article 92
The ship's owner or operator is civilly liable for the acts of the master, the seamen, the pilot and all persons in the ship's service committed in the course of or because of their duties, and for the master's contracts within his powers.
يسأل مالك السفينة أو مجهزها مدنيًّا عن أفعال الربان والبحارة والمرشد وأي شخص آخر في خدمة السفينة إذا وقعت منهم أثناء تأدية وظائفهم أو بسببها، ويُسأل أيضاً عن ال
- Article 93
The liability of the ship's owner is limited in accordance with the international conventions on limitation of liability for maritime claims to which the Kingdom has acceded.
تحدد مسؤولية مالك السفينة طبقاً للاتفاقيات الدولية المتعلقة بتحديد المسؤولية عن المطالبات البحرية التي انضمت إليها المملكة.
- Article 94
The article sets out the six kinds of claims in which a ship's owner may limit his liability, such as death, injury, loss of property, damage to port installations, delay and wreck removal.
لمالك السفينة أن يحدد مسؤوليته إذا كانت الدعوى ناشئة عن أحد الأسباب الآتية: 1- الوفاة أو الإصابة التي تلحق الأشخاص الموجودين على متن السفينة بقصد نقلهم، والهلاك
- Article 95
A ship's owner may not limit his liability for intentional damage or reckless neglect with awareness of damage, salvage and general average claims, the rights of crew members and their heirs, and pollution damage.
لا يجوز لمالك السفينة تحديد مسؤوليته وفقاً لحكم المادة (الرابعة والتسعين) إذا كانت الدعوى ناشئة عن أحد الأسباب الآتية: 1- الضرر الناشئ عن فعلٍ أو امتناعٍ عن فعل
- Article 96
Limitation of liability applies to the balance after set-off between the owner's debt and the creditor's debt from the same incident, and execution against the owner's property is barred if the compensation sum is placed at the creditor's disposal or an acceptable guarantee is provided.
1- إذا نشأ لمالك السفينة المدين دين قبل أحد الدائنين في حادث واحد، فلا يسري تحديد المسؤولية إلا بالنسبة إلى المبلغ الباقي بعد إجراء المقاصة بين الدينين. 2- لا ي
- Article 98
No liability action against the ship's owner is heard after two years from the date of the act giving rise to the liability, without prejudice to rights arising from death or bodily injury.
مع عدم الإخلال بالحقوق الناشئة عن الوفاة أو الإصابة البدنية، لا تسمع الدعوى بالمسؤولية على مالك السفينة بعد مضي سنتين من تاريخ وقوع الفعل المنشئ للمسؤولية.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.