ORS 776.540
Security required of licensees and trainees

  • conditions of bond
  • limitation of liability

(1)

Each licensee and trainee shall procure and furnish to the Oregon Board of Maritime Pilots a security in the sum of $250 as a surety bond or an irrevocable letter of credit, in a form approved by the board and underwritten by a surety company authorized to engage in business in the State of Oregon or issued by an insured institution, as defined in ORS 706.008 (Additional definitions for Bank Act), or as a cash deposit in a form approved by the board. The cash deposit, letter of credit or bond shall be conditioned so as to pay the sum to any person, firm, corporation or other legal entity who or which shall suffer any loss or damage by reason of any negligent act or omission of the licensee or trainee which relates, directly or indirectly, to pilotage of the vessel. No licensee or trainee shall be liable for any such act or omission beyond the amount of the security. However, this limitation of liability shall not apply:

(a)

To willful misconduct on the part of the licensee or trainee;

(b)

To the extent to which insurance is procured pursuant to the option granted by ORS 776.510 (Declaration of legislative intent relating to liability of licensees, trainees and organizations) and 776.520 (Tariffs limiting liability of licensees, trainees or organizations); or

(c)

To acts or omissions relating to the ownership and operation of pilot boats or the transportation of licensees and trainees to and from the vessel being piloted.

(2)

When any suit or action is brought in any court against a licensee or trainee for any such act or omission in respect of which liability is limited as provided by this section and other claims are made or anticipated in respect of the same act or omission, upon payment by the licensee or trainee of the amount of the security into the court in which such suit or action is brought, the court shall distribute that amount rateably among the several claimants and shall dismiss the proceedings as to the licensee or trainee. [1983 c.330 §7; 1985 c.29 §1; 1991 c.331 §138; 1993 c.796 §20; 1997 c.631 §553]

Source: Section 776.540 — Security required of licensees and trainees; conditions of bond; limitation of liability, https://www.­oregonlegislature.­gov/bills_laws/ors/ors776.­html (accessed May 26, 2025).

Notes of Decisions

This section does not limit damages flowing from act of willful misconduct but limits recovery to maximum of $250 for damages flowing from proven act of gross negligence. Port of Kalama v. M/V SM MUMBAI, 561 F. Supp. 3d 1053 (D. Or. 2021)

Current through early 2026

§ 776.540. Sec. required of licensees & trainees's source at oregon​.gov