Landcatch Ltd v International Oil Pollution Compensation Fund [1999] ScotCS 116 (19 May 1999)

Landcatch Ltd v International Oil Pollution Compensation Fund [1999] ScotCS 116 (19 May 1999)

'Damage' and 'loss' under section 1(1) of the Merchant Shipping (Oil Pollution) Act 1971 do not extend to secondary or relational economic losses such as those claimed by Landcatch. The statutory scheme does not override the common law rule against recovery for such losses, and Landcatch's claim is too remote to be compensable. The reclaiming motion is refused.

Citation
[1999] ScotCS 116
Parties
Pursuer and Reclaimer: Landcatch Limited; Defenders and Respondents: The International Oil Pollution Compensation Fund
Jurisdiction
Scotland
Judgment Date
19 May 1999
Procedural Posture
Reclaiming Motion (appeal) / Inner House, Court of Session – Decision on Appeal
Outcome
Reclaiming motion refused; Lord Ordinary's interlocutor affirmed.
Legal Topics
Oil Pollution Liability, Pure Economic Loss, Statutory Interpretation, Remoteness of Damage
Maritime Law Environmental Law Statutory Compensation Oil Pollution Liability Pure Economic Loss Statutory Interpretation Remoteness of Damage

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Parties

Landcatch Limited

Pursuer and Reclaimer

The International Oil Pollution Compensation Fund

Defenders and Respondents

Procedural Posture

Reclaiming Motion (appeal) / Inner House, Court of Session – Decision on Appeal

Legal Issues

  1. 1 Whether Landcatch's claimed losses fall within 'damage' under section 1(1) of the Merchant Shipping (Oil Pollution) Act 1971 and section 4 of the Merchant Shipping Act 1974; specifically, whether pure economic loss of a secondary or relational nature is compensable under the statutory scheme.

Ratio Decidendi

'Damage' and 'loss' under section 1(1) of the Merchant Shipping (Oil Pollution) Act 1971 do not extend to secondary or relational economic losses such as those claimed by Landcatch. The statutory scheme does not override the common law rule against recovery for such losses, and Landcatch's claim is too remote to be compensable. The reclaiming motion is refused.

Court Disposition

Reclaiming motion refused; Lord Ordinary's interlocutor affirmed.

Orders

  • Landcatch's claim dismissed as irrelevant and bound to fail.
  • Claim for 'expenses in pursuing claim' also excluded from compensation.