Decision ID: 001440

In February 2003 the 1992 Fund Executive Committee noted the legal advice which the shipowner’s insurer had received that if it were to make compensation payments to claimants in line with past practice it was highly likely that these payments would not be taken into account by the Spanish courts when the shipowner set up the limitation fund, with the result that the insurer could end up paying twice the limitation amount, which left the insurer no alternative but to deposit the limitation fund with a competent court in Spain or France, recognising that this would result in the money becoming unavailable for the payment of claims for several years.

Date: 01.02.2003
Category: Financial limits, limitation proceedings and indemnification
Subject: Establishment of the shipowner's limitation fund