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Civil Liability for Bunker Oil Pollution Damage

Series:

Malika Gunasekera

This book deals with the liability conventions brought into existence by the International Maritime Organization and concentrates on the newly adopted instrument dealing with bunker oil pollution as an area of great concern for every stakeholder involved in shipping business. The work covers a wide spectrum ranging from the Convention itself to its scope of application, liable and aggrieved parties, jurisdiction, requirements of liability and admissibility of claims, defences and exoneration from liability. It addresses many areas of interest and of importance to international and national legal advisors, lawyers, law students and anyone interested in the relevant field such as shipowners, charterers, shipbrokers, ship personnel and associated contractors and sub-contractors.

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Contents

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Preface ............................................................................................................ 13 Abbreviations .................................................................................................. 15 Introduction .................................................................................................... 19 Public International Law v. private interests ............................................ 21 Role of the IMO and the historical development of the area of concern .. 23 ‘Run’ to the ‘Bunkers’ ............................................................................... 26 Interpretation of the text ........................................................................... 28 Introduction to the relevant Chapters ....................................................... 28 Chapter 1: The Convention ............................................................................. 29 The Need ................................................................................................... 31 The Underlying Doctrines ........................................................................ 33 Polluter Pays Principle .............................................................................. 34 Imposition of Strict Liability .................................................................... 35 The prevailed tools .................................................................................... 36 The evolution of the concept ..................................................................... 40 The Instrument .......................................................................................... 45 “Bunker Oil” ............................................................................................. 46 “Ship” ........................................................................................................ 52 Chapter 2: Scope of Application ..................................................................... 59 (a) Geographical Scope: jurisdiction ratione loci ..................................... 59 (b) Pollution Damage and Preventive Measures: jurisdiction ratione materiae ............................................................................................... 66 Components of Damage ............................................................................ 68 The important characteristics: Externality ............................................... 70 Contamination ......................................... 71 Escape or discharge ................................. 74 “Preventive measures” .............................................................................. 76 The notion of ‘reasonableness’ ................................................................. 78 The right to act .......................................................................................... 80 The appropriate instance ........................................................................... 81 8 Further loss or damage by Preventive measures ...................................... 82 Exclusions ................................................................................................. 84 Situation under the CLC ........................................................................... 84 State immunity and its effects .................................................................. 86 Chapter 3: Status Quo – Liable and Aggrieved Parties .................................. 89 Personal Scope of Application: jurisdiction ratione personae ............... 89 The Liable Party ........................................................................................ 89 “Ship Owner” ............................................................................................ 90 The ultimate compromise ......................................................................... 95 Legal implication on responsible corporate entity ................................... 96 (a) The owner / registered owner .............................................................. 99 Application of ‘alter ego’ .......................................................................... 100 The role of Mortgagee and Financial Security Provider .......................... 102 Situations of cessation and abandonment of ownership ........................... 103 (b) Bareboat charterer ............................................................................... 104 (c) Manager ............................................................................................... 106 (d) Operator ............................................................................................... 109 Joint and Several Liability ........................................................................ 110 Multiplicity of ships .................................................................................. 111 Multiplicity of ‘shipowners’ ...................................................................... 113 Convention being the supreme...

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