Decision ID: 000853

In February 1998 the 1971 Fund Executive Committee noted that a Scottish court of first instance had rejected the claim by a company (Landcatch) which supplied smolt to salmon farmers on Shetland Island from its installation on mainland Scotland some 500 km away. The Committee welcomed the court’s decision, in particular its endorsement of the Fund’s policy that claims for pure economic loss were admissible only if there was a reasonable proximity between the pollution and the loss and that the purpose of the 1971 Fund was to compensate proximate claimants and not remote claimants. The Committee noted that the claimant had appealed against the judgement maintaining that the test for admissibility was causation alone, ie the ‘but for’ test.

Date: 01.02.1998
Category: Pure economic loss (fisheries and mariculture)
Subjects: Admissibility criteria, Link of causation between the loss and the contamination