The International Oil Pollution Compensation Funds, 1992, has signed a global settlement with Steamship Mutual, Registro Italiano Navale (RINA) and Total, in respect of the 'Erika' incident.
'Erika' sank on December 12, 1999, in the Bay of Biscay, some 60 nautical miles off the coast of Brittany, France. Some 400 kilometres of shoreline were polluted by the oil, causing a considerable impact, in particular on businesses in the fisheries and tourism sector.
The total amount available to pay compensation for the incident under the 1992 Civil Liability and Fund Conventions is some €184.7 million (US$255.5 million). Payments of compensation have been made for a total of €129.7 million. Therefore, there remains some €55 million available for compensation. The main objective of the global settlement is to ensure that civil parties who, by the judgement of the Criminal Court of Appeal in Paris in March 2010, had been awarded compensation for damage caused as a result of the incident, receive such compensation as soon as possible.
Under the general four-party agreement, the 1992 Fund, Steamship Mutual, RINA and Total have undertaken to withdraw all proceedings against the other parties to the agreement and, in addition, have waived any right to bring any claim or action in relation to the 'Erika' incident against any of the other parties to the agreement. Under the agreement the 1992 Fund will continue to handle the 13 pending legal actions brought against it, totalling some €19.9 million, and will pay in accordance with judgements.
The 1992 Fund's executive committee said the conclusion of such a settlement will facilitate prompt payment of compensation to victims.
