Bounty Lawsuit Filed
The law in admiralty, which would apply, is something called "limitation of liability," which says that the recovery is limited to the value of the vessel after the accident -- in this case, zero. (This is, by the way, the origin of the concept that later gave rise to corporations). This can be overcome if the plaintiff can show the vessel was not seaworthy. That can be based on the condition of the vessel or the qualifications and competence of the captain and crew, both of which are dubious here. However, the owner is probably a corporation or LLC, and getting past that entity will not be so easy. Finding liability here should not be hard, collecting money, not so easy.