Decision ID: 003647
In October 2009 the 1992 Fund Executive Committee and the 1971 Fund Administrative Council recalled that in a judgement rendered in March 2008 the Abu Dhabi Court of first instance had decided that the owner of the Al Jaziah should pay the 1992 Fund and the 1971 Fund the amount of Dhs 6.4 million (£870 000), the amount to be distributed equally between the two Funds. It was recalled that the Funds had been informed by their lawyers in the United Arab Emirates that the shipowner had debts of some Dhs 63 million(£9.8 million), including the amount awarded to the Funds, and that it would in the present circumstances be very difficult to recover the amounts awarded by the Court. It was also recalled that in October 2008 the Executive Committee and the Administrative Council had instructed the Director to approach the shipowner to discuss a settlement, taking into account his financial situation. It was noted that these negotiations had not progressed. The Executive Committee and the Administrative Council noted the Director’s view that, since there was not a matter of principle involved, it was not in the interest of the 1971 Fund, the 1992 Fund or their contributors to continue to incur costs in executing the judgement which might well exceed the amounts which would be recovered. The Executive Committee and the Adminstrative Council decided, as proposed by the Director, that the Funds should continue to try to recover what they could from the shipowner but that the Director was authorised to discontinue the execution of the judgement once it was clear that the costs would exceed the recoverable amount and that the Funds should then write off the debt.