Decision ID: 001221

In March 2001 the 1971 Fund Administrative Council considered a claim by the shipowner for costs of environmental studies. The Council noted that some of the studies were aimed at providing baseline data for the restoration of the environment and included shoreline surveys to locate buried oil in the beach sediments, monitoring subsequent clean-up operations and investigations into the medium and long-term impact of the spill on inshore fisheries and mariculture. The Council also noted that, following meetings between the shipowner and the Fund and in the light of additional information provided by the shipowner, the Director considered that some of the studies related to damage falling within the definition of ‘pollution damage’ laid down in the Conventions and did not duplicate the work already undertaken by the Fund’s experts and that he was therefore of the view that the costs associated with some of these studies were admissible in principle. Notwithstanding that the Court in charge of the limitation proceedings had rejected the claim, the Council, while endorsing the Director’s view that parts of the claim were not admissible, decided therefore to authorise the Director to settle the claim to the extent that it was admissible.

Date: 01.03.2001
Category: Financial limits, limitation proceedings and indemnification
Subject: Limitation proceedings, subrogated claims and distribution of the shipowner's limitation fund under Article V of the 1969 and 1992 Civil Liability Conventions