Decision ID: 000465

In June 1995 the 1971 Fund Executive Committee recalled that the Fund had not agreed with the first instance court’s interpretation of the 1971 Fund Convention that any interest that accrued on the bank guarantee constituting the shipowner’s limitation fund should be to the benefit of claimants, since in the Fund’s view the interest should accrue to the benefit of the Fund. The Committee decided, however, in the light of the deliberations of the 1984 Diplomatic Conference (which led to the 1984 and 1992 Protocols to the Fund Convention expressly stating that such interest should go to the benefit of the victims), to accept in this case that interest on the shipowner’s limitation amount should go to the benefit of the victims, whilst emphasising that this position was taken only in the context of a global settlement and without prejudice to the Fund’s position in future cases.

Date: 31.05.1995
Category: Financial limits, limitation proceedings and indemnification
Subject: Entitlement to interest accrued on limitation fund