St. Petersburg Court Increases Estonia's Compensation for Runner 4 Costs
11.04.2007
The St. Petersburg Court of Arbitration ruled that Estonia was to receive 564 011 USD (ca 6.5 million EEK) from the limitation fund of Svjatoi Apostol Andrei, a vessel that collided with the freighter Runner 4 last March.
The amount is by 58 000 USD higher than the sum initially indicated by the court at the end of March.
Estonia brought an action with the court claiming almost 34 million EEK to cover the costs of liquidating the pollution at the accident site and pumping fuel from the wreckage. The court accepted the whole claim. However, Estonia was not awarded the whole amount, since the limitation fund was distributed among the claimants in proportion to their claims.
The other claimants were Fortis Corporate Insurance, owner of the cargo of aluminium that Runner 4 was carrying and Fertis International Corporation, owner of Runner 4. Estonias share amounted to 16.8%. The owner of cargo was deemed to have incurred the biggest losses and was granted 77% of the fund.
The size and distribution rules of the limitation fund of Svjatoi Apostol Andrei were determined on the basis of the 1976 Convention on Limitation of Liability for Maritime Claims. Pursuant to the convention shipowners have the right to limit their liability for claims depending on the tonnage of the vessel and the fund is to be distributed in proportion to the claims.
The Ministry of Economic Affairs and Communications represents Estonia in cases involving Runner 4. According to Aivo Lind, Head of the Aviation and Maritime Department of the Ministry, Estonia considers filing new actions against the owner of Runner 4 and its insurer, Ingosstrakh, in order to recover all costs incurred in connection with eliminating pollution and pumping out the fuel.
Said Lind, The amount awarded to Estonia with this ruling may still grow, if the cargo of Runner 4 is raised. In this case the losses of the owner of the cargo will be reduced. A group of insurance firms, led by Fortis Corporate Insurance, has acquired the cargo of aluminium. They have approached the Ministry with the request to raise the cargo during this summer. The Ministry of Economic Affairs and Communications has granted its initial permission, but the final decision rests with the Estonian Maritime Administration.
It is good for Estonia, if the cargo is raised, Lind said. In the process of raising the cargo the wreckage of Runner 4 shall be checked once again and any fuel found shall be pumped out. The Ministry has made environmental safety and removal of any remaining fuel a precondition for raising the cargo.
