Focus

The is the first case of compensation for ship-sourced oil pollution against P&I Club after China acceded to 1992 CLC, the first case for Oceanic and Fishery Administrations to claim for pollution to marine ecological environment against overseas bodies, with claimants of over 1,500 people, and claimant amount of over RMB 170 million.

Facts

Early in the morning of 23 November 2002, a Malta-flag tanker M.V. TASMAN SEA collided with a China-flag coastal vessel M.V. SHUN KAI 1 in Tianjin offshore area, causing M.V. TASMAN SEA (“the vessel”) to leak nearly 205 tons of crude oil.

Proceedings

After the accident, the Tianjin Oceanic Administration, Tianjin Fishery Administration and adjoining fishermen applied to the Tianjin Maritime Court (“TMC”) for the arrest of the vessel.

Entrusted by the owner of the vessel, through several rounds of negotiations with TMC and submit expert opinions to the court, our firm has successfully persuaded TMC to release the vessel against a LOU in amount of USD 3 million.

Later, the Tianjin Oceanic Administration, Tianjin Fishery Administration and fishermen of up to 1,500 people bring up a lawsuit of compensation for ship-sourced oil pollution against the vessel and its P&I Club, at the claim amount of over RMB 170 million. Through the first trial, second trial and retrial proceeding, our firm has reached a settlement agreement with these Claimants at the mount of USD 3.2 million.

Comments

This is the first case for a Chinese court to trial a case with application of the 1992 CLC. Several legal issues has been discussed and decided in the case, such as the claimants’ title to sue, class action, compensation scope for environmental damages, ascertainment of aquaculture and fishing losses. After 8 years of trial, parties reached settlement agreements in 2010. Our Firm raises pleas on the application of 1992 CLC, the compensation scope for environmental damage and the calculation basis for the loss of aquaculture and fishing loss, which have been accepted by Chinese court. The case provides a significant reference to the formulation of Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Cases involving Disputes over Compensation for Vessel Oil Pollution Damage which was issued shortly after in 2011.

Our firm has been tracking tightly with the latest legislation dynamic of claims for ship-sourced oil pollution and marine ecological damage compensation. Our lawyers have attended several ship-sourced oil pollution seminars hold by the Ministry of Transportation, Maritime Safety Administration and the academic circles upon invitation as experts.