Alegrete Shipping Co Inc (Owners of the ship "Sea Empress") and Anr v The International Oil Pollution Compensation Fund 1971 and Ors - QBD (Admlty Ct)(David Steel J) - 29 May 2002

Limitation - Merchant Shipping Act 1995 - Claim by processor of whelks against International Oil Pollution Compensation Fund for loss of profits caused by interference with business as a result of oil spill - Whether loss too remote in law

The vessel Sea Empress grounded off Milford Haven in February 1996, resulting in a substantial oil spillage. Claims were brought against the owners of the Sea Empress, who brought limitation proceedings to limit their liability, pursuant to section 157 of the Merchant Shipping Act 1995 ("the Act"). The totality of the claims arising out of the incident was substantially in excess of the owners' limitation figure calculated in accordance with section 157. By virtue of its obligation under the "top up" provision in section 175 of the Act, the International Oil Pollution Fund 1971 ("the Fund") was responsible for all claims above the owners' limit.