The Civil Liability Convention (CLC)

The Civil Liability Convention (CLC) as amended, primarily by the 1992 Protocol, contains several salient features designed to ensure adequate compensation for oil pollution damage. Here’s a breakdown of the key aspects:

1. Strict Liability of the Shipowner:

• The registered owner of a ship is held strictly liable for pollution damage resulting from the escape or discharge of persistent oil from their ship. This means liability is imposed regardless of fault, with limited exceptions.
• The owner is liable at the time of the incident or, if the incident consists of a series of occurrences, at the time of the first occurrence.

2. Limited Exceptions to Liability:

• The shipowner can be exonerated from liability only in very specific circumstances, such as:
  • Damage resulting from an act of war, hostilities, civil war, insurrection, or a natural phenomenon of an exceptional, inevitable, and irresistible character.
  • Damage wholly caused by an act or omission done with the intent to cause damage by a third party.
  • Damage wholly caused by the negligence or other wrongful act of any government or other authority responsible for the maintenance of lights or other navigational aids in the exercise of that function.
  • If the claimant themselves caused the damage wholly or partially through intentional acts or negligence, the owner may be exonerated wholly or partially.

3. Limitation of Liability:

• Shipowners are entitled to limit their liability to an amount determined by the tonnage of the ship. The 1992 Protocol significantly increased these limits compared to the original 1969 Convention.
• As of the 2000 amendments, the limits are:
  • For a ship not exceeding 5,000 gross tonnage: 4.51 million Special Drawing Rights (SDR).
  • For a ship between 5,000 and 140,000 gross tonnage: 4.51 million SDR plus 631 SDR for each additional unit of tonnage.
  • For a ship of 140,000 gross tonnage or over: 89.77 million SDR.
• However, the owner loses the right to limit liability if the pollution damage resulted from their personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result.

4. Compulsory Insurance and Financial Security:

• Ships carrying more than 2,000 tons of oil as cargo are required to maintain insurance or other financial security to cover their liability under the Convention.
• This ensures that there are funds readily available to compensate victims of oil pollution damage.
• Claimants have a right of direct action against the insurer or other person providing financial security.

5. Scope of Application:

• The 1992 Protocol broadened the scope of the Convention to cover pollution damage caused in the exclusive economic zone (EEZ) or equivalent area of a State Party, in addition to the territory and territorial sea.
• It applies to all seagoing vessels constructed or adapted to carry oil in bulk as cargo, including both laden and unladen tankers, and covers spills of persistent oils.
• The definition of “pollution damage” includes:
  • Loss or damage caused outside the ship by contamination.
  • Costs of reasonable measures to reinstate the environment (limited to the costs actually incurred).
  • Costs of preventive measures taken to minimize or prevent pollution damage, even when no actual spill occurs, provided there was a grave and imminent threat.

6. Right of Action and Jurisdiction:

• Claims for compensation can only be brought in the courts of a Contracting State where the pollution damage occurred.
• A time limit is established for bringing claims (generally three years from the date the damage occurred and no more than six years from the date of the incident).
• Judgments given by a competent court in a Contracting State are recognized and enforceable in other Contracting States.

7. Focus on Persistent Oil:

• The Convention primarily applies to pollution damage caused by persistent oils (e.g., crude oil, fuel oil, heavy diesel oil, lubricating oil), which are moreLong-lasting in the marine environment.

In summary, the amended Civil Liability Convention establishes a robust framework for compensating victims of oil pollution damage from ships by ensuring strict liability for shipowners, requiring compulsory insurance, and providing mechanisms for claiming and securing compensation.