Decision ID: 000763

In June 1997 the 1971 Fund Executive Committee, in a private session at which only the representatives of 1971 Fund Member States were present, agreed that the shipowner/insurer would be entitled to subrogation with regard to the shipowner’s limitation fund and the 1971 Fund in respect of any payment made to a claimant, if it were established by a final judgement that the shipowner was exonerated from liability under Article III.2(c) of the 1969 Civil Liability Convention. The Committee also considered that, as a result of such subrogation, the shipowner/insurer would have the same rights against the Fund as the claimants whom the shipowner/insurer had paid would have had if the payments had not been made, which would mean that, if the total amount of established claims were to exceed the maximum amount available under the 1969 Civil Liability and 1971 Fund Conventions, and consequently all claims were reduced pro rata, the subrogated claims by the shipowner/insurer would be reduced correspondingly.

Date: 31.05.1997
Categories: Application of the Conventions, Procedural matters
Subjects: Exoneration of the shipowner from liability under Article III.2 and III.3 of the 1969 and 1992 Civil Liability Conventions, Sessions held in private pursuant to Rule 12 of the Rules of Procedure