Decision ID: 000740

In April 1997 the 1971 Fund Executive Committee considered a claim for loss of profit by a company located in the area affected by the spill which provided linen supplies and laundry services to hospitals and the hotel and catering trade throughout south west Wales. The Committee took the view that the company formed and integral part of the economic activity of the affected area, but that the business was only partly dependent on customers in the tourism sector. The Committee considered that the loss allegedly suffered by the company was a more indirect result of the reduction in tourism than losses suffered by hotels, restaurants and tourism attractions and therefore decided that there was not a reasonable degree of proximity between the alleged loss and the contamination and that the claim should be rejected.

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