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“Agios Dimitrios” oil pollution case

Release Date:2013-04-07 Hits:

On 15 Sept 2009, a container vessel AGIOS DMITRIOS flying Panama flag was impacted by a severe typhoon, the vessel drifted to ZhuHai Gaolan dao and grounded. The oil tank was broken, and the leakage of bunker oil continued for one month which led significant amount of bunker oil spill (771.071 ton). The coast line and beach of Gaolan Dao have been seriously polluted.

 

This is an expensive accident. The cleaning operation has cost the Zhuhai MSA 77,569,849 RMB. Besides, the pollution is devastating to fishing industry. The loss of coastal fishery farm has amounted to 69,811,900RMB. The fishery farmers suffered great loss and they are no longer live on their fishery firm, then they petitioned to the upper government for help. The accident has also led to the tourism loss of 2,822,720 RMB, including loss of business and shutting down the construction project of hotel. Moreover, the direct loss and recovery expense of national natural resource has amounted to 41,633,300RMB, constituting the total loss of 191,837,769RMB.

 

In order to recover the damage, ZhuHai MSA, GuangDong Marine and Fishery Bureau,the tourism company and the 50 fishery farmers claimed against the shipowner and its P&I Club. Mr Xu Guangyu and Ms Lin Xiaomei have been appointed as agent of the parties suffering damage.

 

The vessel suffered serious damage in the accident, hence it was impossible to refloat it. However the vessel pose damage to the navigation of other vessel using the ship route, it had to be cut-off and moved. The shipowner of “ARGOS DIMITRIOS” was a single ship company and it went bankrupt and it became incapable to compensate, which made it harder for the claimants to recover their loss. After tough and protracted negotiation with the correspondent counsel and P&I Club, we convinced North of England P&I Club set up the fund for limitation of liability of maritime claim in Guangzhou Maritime Court. Claimants registered their rights in the Court and started the claim-confirming proceeding, thus their rights have been duly preserved. 

 

Apart from this, it was difficult to collect and organize evidence which was crucial to prove the loss but was dispersed and was in huge quantity. Under our instruction, the report of oil inspection, the report of loss of ecological resources, estimation of loss of fishery farm, report of loss of tourism company and the report of cleaning operation, etc. have been given. Expert witness was invited for cross-examination. After the oral hearing of maritime court, we negotiated with our opponent and advise our client a project of settlement under the mediation of the court. Finally, the parties agreed a settlement which stated that the shiponwer and North of England P&I Club would make payment in total of 9,500,000 as compensation for the damaged caused by the accident.

 

It only takes two years for Guangyu & Co to close such a complicated case effectively and efficiently. The prompt action is significantly important to preserve the marine ecological environment and recover the loss of fishery farmers who are relatively vulnerable party in the claim. Guangyu & Co have also contribute in avoiding protracted court proceeding which are crucial for stability of the society. 

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