Landcatch Ltd. v. International Oil Pollution Compensation Fund

2 Lloyd’s Rep. 316 (1999)

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Landcatch Ltd. v. International Oil Pollution Compensation Fund

Scotland Inner House
2 Lloyd’s Rep. 316 (1999)

AR

Facts

A vessel ran aground and spilled oil at Garth Ness, Shetland. Landcatch Ltd. (Landcatch) (plaintiff) sued the International Oil Pollution Compensation Fund (fund) (defendant) for payment of compensation. The fund was part of the Merchant Shipping Act 1974, a British act that regulated international shipping and provided relief for those harmed by oil spills. The act made defendants strictly liable for “damage” caused by oil spills. Landcatch raised fish in the zone of the spill and received compensation from the fund for those damages. However, Landcatch argued that it was also entitled to compensation from the fund for the reduced price in fish it sold due to the change in market conditions caused by the spill. The act stated that a vessel was liable for any damage caused by an oil spill without proof of fault.

Rule of Law

Issue

Holding and Reasoning (Cullen, L.)

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