Decision ID: 001293

In October 2001 the 1971 Fund Administrative Council noted developments in respect of the legal action against the shipowner/insurer and the 1971 Fund by a company (Shetland Sea Farms) farming salmon within the exclusion zone which had been contracted to buy smolt at a predetermined price to place in cages, but due to the contamination had been forced to sell the smolt at a loss and had also suffered loss of profit through not growing the fish. The Council noted that in a decision in July 2001 the Court had concluded that responsible officers of the company had knowingly presented to the Court false documents in support of the claim. It was noted that the 1971 Fund and the shipowner’s insurer had argued that, since the claimant had used the court process to further an unlawful purpose, the claim should be refused without further procedure. It was also noted that the company had argued that to refuse the claim would unfairly penalise it and had stated that it was now prepared to seek to prove its claim without reference to false documents. The Council noted that the Court had decided that the company should be given the opportunity to present a revised case which should not depend on the false documents and that not to allow the revised claim to proceed would be an excessive punishment. It was further noted that the Court had decided that the case should proceed to a hearing restricted to the question of whether Shetland Sea Farms could prove that a contract existed before the Braer incident occurred for the supply of smolts to the company without reference to false letters or invoices.

Date: 30.09.2001
Category: Pure economic loss (fisheries and mariculture)
Subject: Specific claims considered by the governing bodies