Decision ID: 001364

In May 2002 the 1971 Fund Administrative Council endorsed the position of the Director that the proposal by the P&I insurer and the hull insurer of the Singapura Timur to proceed against the colliding vessel (Rowan) interests in Japan had merit, since it would ensure that the 1971 Fund would recover at least part of any compensation payments made without having to incur any substantial legal costs. It was noted that in the Director’s view, a condition of an agreement with the insurers in this regard should be that any amount paid as a result of a judgement or settlement would be placed in an escrow account until the liabilities of the P&I insurer, the hull underwriters and the Fund had been established and that once these liabilities had been determined, the money in the escrow account would be distributed on a pro rata basis. It was also noted that a further condition of such an agreement should be that the 1971 Fund would waive its rights to pursue any further claim against the owner of the Rowan to recover any amounts the Fund had paid in compensation.

Date: 31.03.2002
Category: Legal actions
Subjects: Legal actions against third parties, Legal actions against shipowners