Recently, Mediterranean Shipping Company (MSC) filed a maritime lawsuit in the High Court, arguing that the Kerala State government has no authority to make maritime claims related to the MSC Elsa 3 capsizing incident. The incident occurred approximately 14.5 nautical miles off the coast, beyond India's territorial waters and the state's maritime jurisdiction.

The state is seeking compensation of 9.531 billion rupees for alleged environmental and economic damages following the sinking. MSC is requesting a limitation of liability, arguing that without such a cap, it could disrupt insurance and shipping operations, driving up cargo prices.

The Kerala High Court has received seven lawsuits, with the largest claim exceeding $1 billion. Additional private lawsuits have been filed by consignors whose goods were on board and by the fishing community, among others.

In its filing, MSC indicated that it might accept several claims and noted that at the time of the sinking on May 25, the vessel was carrying 643 containers. The lawsuit seeks to limit the potential claim amount to a value range based on the ship's tonnage, which, at the current exchange rate, amounts to approximately $14.2 million.

The lawsuit is filed under India's Maritime Act of 1958, which allows ship owners to limit liability, and the 2015 Merchant Shipping Rules, which reaffirm the right to limit liability for shipwrecks. The lawsuit further emphasizes that India is a signatory to the Maritime Claims Limitation Convention.

Although salvage operations are ongoing, the lawsuits continue. A salvage team is on-site, preparing to begin saturation diving on the tanker as part of the effort to siphon oil from the tank. However, they report that the waves and sea conditions are currently too rough to commence operations.

Sri Lanka, hundreds of miles from the wreck site, has also filed a lawsuit seeking compensation, with reports indicating that wreckage from the vessel has washed up on its beaches.

The Kerala High Court has scheduled the next hearing for August 21. The court continues to detain the MSC Akiteta II, essentially as collateral for the claims. Authorities had previously briefly detained two other MSC vessels in response to personal claims from shippers. MSC has denied the government's claims regarding the extent of the damages and has refused to pay the bond.

MSC's attempt to limit liability is similar to the actions of the owners and operators of the Dali vessel, which destroyed a bridge in Baltimore in 2024. They invoked international law, capping potential liability at approximately $44 million. It is expected that a U.S. district court will hear the case in 2026.