R J Tilbury & Sons (Devon) Ltd. (t/a East Devon Shellfish) v Alegrete Shipping Co Inc & Ors [2003] EWCA Civ 65 (07 February 2003)

R J Tilbury & Sons (Devon) Ltd. (t/a East Devon Shellfish) v Alegrete Shipping Co Inc & Ors [2003] EWCA Civ 65 (07 February 2003)

The claimant's loss was not sufficiently proximate to the physical contamination; it was a secondary economic loss resulting from the inability of local fishermen to supply whelks due to the fishing ban. The statutory scheme does not extend to such relational losses, being focused on direct physical consequences of contamination. The appeal is dismissed on the basis that the loss claimed falls outside the intended scope of recoverable damage under the Merchant Shipping Act 1995.

Citation
[2003] EWCA Civ 65
Parties
Claimant/appellant: R J Tilbury & Sons (Devon) Ltd T/a East Devon Shellfish; First Defendant and Respondent: Alegrete Shipping Co Inc (Owners of the Ship 'Sea Empress'); Second Defendant: Assuranceforeningen Skuld (Gjensidig); Third Defendant (effective Respondent): The International Oil Pollution Compensation Fund 1971; Fourth Defendant: The Secretary of State for the Environment, Transport and the Regions; Other Defendants: All other persons claiming or being entitled to claim compensation and/or damages by reason of, or arising out of, the grounding of the ship 'Sea Empress'
Jurisdiction
England and Wales
Judgment Date
07 February 2003
Procedural Posture
Civil Appeal / Appeal From Preliminary Issue Determination in Admiralty Court
Outcome
Appeal dismissed
Legal Topics
Oil Pollution Liability, Economic Loss, Strict Liability, Remoteness of Damage, Compensation Fund Claims
Admiralty Law Environmental Law Statutory Interpretation Oil Pollution Liability Economic Loss Strict Liability Remoteness of Damage Compensation Fund Claims

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Parties

R J Tilbury & Sons (Devon) Ltd T/a East Devon Shellfish

Claimant/appellant

Alegrete Shipping Co Inc (Owners of the Ship 'Sea Empress')

First Defendant and Respondent

Assuranceforeningen Skuld (Gjensidig)

Second Defendant

The International Oil Pollution Compensation Fund 1971

Third Defendant (effective Respondent)

The Secretary of State for the Environment, Transport and the Regions

Fourth Defendant

All other persons claiming or being entitled to claim compensation and/or damages by reason of, or arising out of, the grounding of the ship 'Sea Empress'

Other Defendants

Procedural Posture

Civil Appeal / Appeal From Preliminary Issue Determination in Admiralty Court

Legal Issues

  1. 1 Whether the claimant's loss of profits constituted 'damage caused by contamination resulting from the discharge or escape' of oil under section 153 of Schedule 4 to the Merchant Shipping Act 1995
  2. 2 Whether the statutory scheme allows recovery for pure economic loss by parties not directly engaged in local fishing activities

Ratio Decidendi

The claimant's loss was not sufficiently proximate to the physical contamination; it was a secondary economic loss resulting from the inability of local fishermen to supply whelks due to the fishing ban. The statutory scheme does not extend to such relational losses, being focused on direct physical consequences of contamination. The appeal is dismissed on the basis that the loss claimed falls outside the intended scope of recoverable damage under the Merchant Shipping Act 1995.

Court Disposition

Appeal dismissed

Orders

  • Claim for loss of profits rejected as not recoverable under section 153 of Schedule 4 to the Merchant Shipping Act 1995
  • No order as to further relief