Decision ID: 001340

In May 2002 the 1971 Fund Administrative Council noted that the 1971 Fund and the shipowner’s insurer had commenced proceedings against the Milford Haven Port Authority (MHPA) in the Admiralty Court in London and had set out a detailed claim against MHPA, which included a number of allegations of negligence and/or breach of duty and also that the MHPA’s response to the grounding of the vessel had been improvised and negligent and had resulted in the unnecessary escape of some 69,300 tonnes of crude oil. The Council also noted that the insurer had authorised the 1971 Fund to pursue the recourse action in the insurer’s name, and after consultation, to take all decisions relating to the conduct of the proceedings, and that an agreement had been reached between the Fund and the insurer as to the distribution between them of any amount recovered through the recourse action. It was further noted that under the agreement the 1971 Fund would be entitled to retain any sums recovered up to a level at which the Fund had been reimbursed in full for all sums paid by it in compensation and costs, that any balance would be paid to the insurer and that the Fund would indemnify the insurer in respect of certain specified costs incurred by the insurer in connection with the recourse action. The Council endorsed the actions taken by the Director and instructed him to keep the Council informed of developments.

Date: 31.03.2002
Category: Legal actions
Subject: Legal actions against third parties