Decision ID: 001514

In February 2004 the 1992 Fund Executive Committee noted that in December 2003 the Commercial Court in Lorient had rendered a judgement in respect of a claim for loss of income by a claimant whose property in the affected area was let to other businesses (but not directly to tourists). It was noted that the Fund had rejected the claim on the grounds that it was a second degree (indirect) loss and that the claimant had not proven that he had suffered a loss. It was noted that the Court had stated that it was not bound by the Fund’s admissibility criteria, that under French law a claim was admissible if the loss was direct and certain, provided there was a sufficient link of causation between the event and the damage. The Committee noted that the Court had held that the Erika incident was the sole cause of the pollution and its economic consequences, that a letter from an estate agent showed that a contract for the lease of the property had been cancelled due to the incident and had therefore ordered the shipowner/insurer and the 1992 Fund to pay compensation for loss of rental income. The Executive Committee decided that, in view of the importance of the issue for the proper functioning of the compensation regime based on 1992 Conventions, the Fund should pursue an appeal against the judgement.

Date: 01.02.2004
Category: Pure economic loss (tourism)
Subject: Link of causation between the loss and the contamination