P & O Scottish Ferries Ltd v Braer Corporation & Assuranceforeningen Skuld [1999] ScotCS 3 (7 January 1999)

P & O Scottish Ferries Ltd v Braer Corporation & Assuranceforeningen Skuld [1999] ScotCS 3 (7 January 1999)

Section 1 of the Merchant Shipping (Oil Pollution) Act 1971 does not provide compensation for purely relational economic loss; the losses claimed are too remote and not directly caused by oil contamination. Statutory interpretation must follow normal principles unless ambiguity exists, and the pleadings do not establish sufficient proximity for liability.

Citation
[1999] ScotCS 3
Parties
Pursuer: P. & O. Scottish Ferries Ltd.; Defender: The Braer Corporation; Defender: Assuranceforeningen Skuld; Minuter: The International Oil Pollution Compensation Fund
Jurisdiction
Scotland
Judgment Date
07 January 1999
Procedural Posture
Statutory Compensation Action / Preliminary Pleas to Relevancy and Specification
Outcome
Action dismissed
Legal Topics
Oil Pollution, Economic Loss, Statutory Compensation, Interpretation of International Conventions
Maritime Law Environmental Law Statutory Interpretation Oil Pollution Economic Loss Statutory Compensation Interpretation of International Conventions

Case Brief

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Parties

P. & O. Scottish Ferries Ltd.

Pursuer

The Braer Corporation

Defender

Assuranceforeningen Skuld

Defender

The International Oil Pollution Compensation Fund

Minuter

Procedural Posture

Statutory Compensation Action / Preliminary Pleas to Relevancy and Specification

Legal Issues

  1. 1 Whether purely relational economic loss is compensable under section 1 of the Merchant Shipping (Oil Pollution) Act 1971
  2. 2 Whether the statutory language should be interpreted broadly in light of the underlying international convention
  3. 3 Whether the pursuers' pleadings establish sufficient proximity for liability

Ratio Decidendi

Section 1 of the Merchant Shipping (Oil Pollution) Act 1971 does not provide compensation for purely relational economic loss; the losses claimed are too remote and not directly caused by oil contamination. Statutory interpretation must follow normal principles unless ambiguity exists, and the pleadings do not establish sufficient proximity for liability.

Court Disposition

Action dismissed

Orders

  • Sustain general pleas to relevancy for defenders and minuter
  • Dismiss the action