French Oil Company Guilty But Not Responsible for ERIKA oil Spill

The Paris Court of Appeal ruled this week that Total is not responsible for negligence at a civil level for the 1999 ERIKA spill off of Brittany. In 2008, the French oil giant was ordered to pay 192 million Euros ($250 million) to plaintiffs that suffered when the tanker broke apart off the country’s coastline.

Total’s appeal argued the ship’s owners and its classification society, Rina, were responsible for issuing a certificate of good health for the ERIKA, and the oil company was not to blame for the shipping disaster and its negligence.

The Court President Joseph Valantin said the ERIKA sank because of heavy corrosion directly linked to insufficient maintenance of the ship and Total did not properly inspect the vessel, which was its responsibility. But, the ruling stated Total was only the charter company, which under international regulations protects it from civil responsibility.

While, Total has already paid some $200 million to the victims of the spill, the payment was not mandatory due to the recent ruling. Total was responsible for penal aspects of the spill and did pay several hundred thousand in fines. Additionally, Total’s attorneys made it clear the company has already spent a total of 370 million Euros ($499 million) in compensations and repairing damages from the accident.

Moreover, the ruling could have a monumental impact on the relationship of charter and owner especially considering oil charterer would only be responsible for penal causes and not civil impacts. France’s shipowners group ‘Armateurs de France’ stated that the appeals court should have relied on MARPOL’s convention rather than the 1983 French anti-pollution legislation in its ruling. The association also said, “if international law is insufficient on dealing with polluters, it must be modified by the IMO and not a French judge.” Additionally, the association also criticized the court for failing to bring the ERIKA’s flag state to justice.

Essentially, Armateurs de France states the French court has found a way around international compensation regimes on the basis of implied “control” of the vessel, which will have a profound impact on IMO conventions.