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Fund on oil pollution damage applies as additional executor

 

Abstract

After the Fund paid the compensation for oil pollution damage to victim and the victim transferred his rights legally to the Fund, the Fund is entitled to apply execution for its compensation. When amending the Maritime Law of PRC, the Shanghai Maritime Court recommends that explicitly conferring the Fund on oil pollution damage the right of recourse after compensation.

Case

The ship ‘Shanhong 12’sank in December 2012 and caused oil pollution that spread in relevant waters. The accident caused 1,301,700yuan cost for eliminating the pollution and the cost was paid by Xiyang Ltd. that was ordered by relevant administrative organization.

Then Xiyang Ltd. applied for compensation from the Fund on oil pollution damage and the Fund paid Xiyang Ltd. 469,419yuan. Afterwards, Xiyang Ltd. transferred its right of recourse to the Fund legally.

The controversy is whether the Court allows the Fund to be the additional executor.

Judgment

The Shanghai Maritime Court judged that the Fund is entitled to execute the debtor’s assets based on its right of recourse from Xiyang Ltd. It is because Xiyang Ltd. is entitled to transfer its right to anyone it agrees. When Xiyang Ltd. has already got the effective judgment against the debtor, the Fund can directly apply as additional executor based on relevant law on enforcement.   


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