Decision ID: 001004

In October 1993 the 1971 Fund Executive Committee noted that, by a judgement rendered in July 1993, the Court of first instance had upheld the decision by the judge of that Court who was in charge of the limitation proceedings that the maximum amount payable by the Fund under Article 4.4 of the 1971 Fund Convention should be calculated by the application of the free market value of gold, which gave an amount of £380 million (including the amount paid by the shipowner under the Civil Liability Convention) instead of £48 million as maintained by the Fund. The Committee reiterated its concern as regards the consequences of the judgement for the future of the international regime and emphasised the universally accepted interpretion of the Fund Convention was that the limit should be determined using the Special Drawing Right (SDR). The Committee noted that the Fund had appealed against the judgement and instructed the Director to pursue the appeal proceedings.

Date: 30.09.1993
Category: Legal actions
Subject: Judgements in respect of the maximum aggregate amount payable under the Conventions in accordance with Article 4.4 of the 1971 and 1992 Fund Conventions