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Owner of cargo vessel that hit US tanker creates UK fund for litigation

The owner of the cargo ship which struck a U.S.-contracted military tanker near England's northeastern coast last month has announced that it will set up a fund to cover potential lawsuits arising from the collision.

MS Solong Schiffahrtsgesellschaft M & Co KG, a subsidiary of Ernst Russ which owns the Portuguese-flagged container ship Solong, was sued at London's High Court on Monday by the operators of the Stena Immaculate, which the Solong hit on March 10, according to court records.

Last week, the Ernst Russ subsidiary filed a separate action at the Admiralty Court specialist court seeking "limitation in liability".

The case was brought against Dutch logistics company Samskip. They had previously claimed that the Solong carried Samskip containers. Also, "all others claiming or entitled to claim damage or loss" in relation to the collision.

In a press release, a spokesperson for Ernst Russ stated that the company was setting up a “limitation fund” which would be available to "parties with verified claims against Solong’s owner".

The incident took place in UK territorial waters and there are many interested parties, including public authorities in the UK. Therefore, setting up a fund is the best way to proceed.

Owners of the Solong want to ensure that a fund will be available for any claims. It is a standard procedure for large maritime accidents, and the fund offers security to potential claimants.

The Solong crashed into the Stena Immaculate tanker, a Crowley-operated tanker that was transporting jet fuel. Crowley refused to comment.

Unknown, but presumed dead, is a member of the crew of the Solong. Vladimir Motin has been charged with manslaughter through gross negligence. (Reporting and editing by Mark Porter, Jan Harvey and Sam Tobin)

(source: Reuters)