If the vessel has not been attached, but suit has been filed against the owner, then venue is appropriate in any district in which the owner has been sued. If the vessel has not been attached and no suit has been filed, then venue is appropriate in the district in which the vessel is located at the time of filing. If the vessel is not within any district, such as on the high seas or in a foreign port, then venue is appropriate in any district. It is possible for a shipowner to choose the venue for litigation arising out of a casualty, if the limitation proceeding is filed before any claimants filed suit. In connection with the limitation complaint, the parties seeking limitation must file a bond in the amount of their interest in the vessel and its pending freight, if any.
Claimants are free to challenge the sufficiency of the amount of the bond.
The limitation action must be commenced within six months of the date on which the shipowner receives written notice of a claim arising out of the incident. This period is jurisdictional, and the action will be dismissed if it is not filed timely. In addition to filing a limitation action, a shipowner can plead limitation of liability under the act as an affirmative defence to a suit brought in a federal district court. But if the claimant chooses to file its suit in state court, rather than in the federal system, the limitation defence is not available. Additionally, asserting the act as a defence does not provoke a concursus of all claims, which is often the major benefit the shipowner receives under the act.