[Basic details of the case] The Panamanian ship “EL ZORRO” owned by Dominion Glory S.A. was an oil/chemical cargo ship of the Marshall Islands, with the gross tonnage of 8,539 tons. The disputed voyage was to ship oil of 4,978.767 tons from the Port of Taesan to the Port of Zhapu, China. On December 24, 2018, when waiting for berthing and unloading at the anchorage ground of Chenshan of the Port of Zhapu, China, the ship “EL ZORRO” was it by the Singaporean ship “ELLINGTON”. As a result, the cargo hold No. 6 of the starboard of the ship “EL ZORRO” was damaged, and the SHELL-500N base oil loaded therein leaked. According to the captain, the quantity of oil that had leaked was around 400 tons. After the accident happened, the Jiaxing Maritime Bureau arrived at the site of accident promptly for investigation, launched the contingency plan immediately , and at the same time instructed Jiaxing Jieyang Environmental Protection Co., Ltd. and other organizations to conduct emergency marine cleaning work. The SHELL-500N base oil is highly refined mineral oil, used for the production of paints, cleaning agents, lubricating oil, etc. It is persistent oil. By the time when the application was filed, Dominion Glory S.A. had already paid and provided guarantees totaling RMB 48.895 million and USD 9 million. On March 20, 2019, regarding the liquidated damages for oil pollution caused by the foregoing collision accident, Special Drawing Right, Dominion Glory S.A. applied with the Ningbo Maritime Court for the establishment of an oil pollution damage liability fund with Special Drawing Right 6,743,109, and provided the permanent nationality registry certificate, international tonnage certificate, captain’s statement, possible liabilities for third parties, list of stakeholders and other evidence of the ship “EL ZORRO.”

[Main idea of adjudication] The marine environment of China was damaged due to the leak of a large amount of persistent cargo oil in the collision accident that happened to the ship owned by the applicant, as prescribed by the International Convention on Civil Liability for Oil Pollution Damage, 1992, the applicant applied with a maritime court of China for the establishment of an oil pollution damage liability limitation fund. As long as the application complies with the international convention and the Chinese law, the maritime court must approve the establishment according to law.

[Typical significance] This case is China’s first case tried by a maritime court where a foreign party applied for the establishment of an oil pollution damage liability limitation fund in accordance with the International Convention on Civil Liability for Oil Pollution Damage, 1992. The handling of this case fully demonstrates that a Chinese judicial organ undertakes to fulfill their obligations under international conventions and equally protect the legitimate rights and interests of both domestic and foreign parties, and provides reference of documents and experience for the handling of such cases by maritime courts across the country.