Decision ID: 000730

In April 1997 the 1971 Fund Executive Committee considered a claim by an ice cream and frozen food wholesaler located in the area affected by the spill for loss of profit allegedly due to its reduction in trade with hotels, restaurants, cafes and tourist attractions. The Committee took the view that the company’s alleged loss was more an indirect result of the reduction in toursim than losses suffered by hotels, restaurants and tourist attractions, ie it did not sell its goods directly to tourists but to other businesses which served tourists. Although the company formed an integral part of the economic activity of the affected area, the Committee considered that there was not a reasonable degree of proximity between the alleged loss and the contamination, and therefore decided to reject the claim.

Date: 31.03.1997
Category: Pure economic loss (tourism)
Subject: Second degree (indirect loss) claims