Amoco Cadiz litigation: Summary of the 1988 court decision

Abstract

In January 1988, Judge Frank McGarr of the United States District Court in Chicago presented the decision concerning ail claims by the French government, local communes, fisheries groups, and other parties, concerning the financial liability of the Amoco par-ties for damages related to the Amoco Cadiz oil spill of March 1978. Several categories of claims, including lost image, lost enjoyment, and ecological damage were eliminated as being uncognizable under French law. Claims for unpaid volunteers who worked on the spill were also eliminated. Most other categories were substantially reduced for a variety of factors including exaggeration, lack of evidence, double billing of certain claims against Amoco Cadiz and the Tanio spill of two years later, and the inability to attribute damage directly to Amoco Cadiz. This paper summarizes the major claims and awards, and discusses the court's decision. Altogether, the court recognized 252.8 million francs of claims against Amoco, plus interest compounded annually at the rate of 7.22 percent since December 31, 1979. Utilizing the current exchange rate (6.28 francs/U.S. dollars) yields an approximate judgment of $40.26 million in claims and $35 million in interest through December 1988. The judgment is expected to be appealed by both sides.