VILLA DE PITANXO

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Three insurers ruled to pay more than €5.1 million in compensation to the owner

The Commercial Court No. 2 of Pontevedra has issued a ruling requiring three insurers to pay more than €5.1 million in compensation to the owner of the 'Villa de Pitanxo', which sank on Feb 15, 2022, in the waters of Newfoundland, leaving 21 of the 24 sailors on board dead. The judge fully upheld the shipowner's claim and ordered the Mapfre España Compañía de Seguros y Reaseguros to pay €3,104,408, while the Sociedad de Seguros Mutuos Maritimos de Vigo and the Mutual Insurance Company of Fishing Vessel Owners in Spain must each pay €1,034,802. The total sum amounts to €5,174,012, which includes both the value of the vessel and the cargo of fish lost in the shipwreck. The ruling was based on the Maritime Navigation Law, which enshrined the principle of universal risk. This establishes that, unless proven otherwise, damages caused during navigation are covered by the policy. The judge reminded that the insured must only proved that the damage, in this case the total loss of the vessel, occurred during navigation, without having to prove the exact cause. The ruling emphasized that the insurance and validity of the policies were not discussed in the proceedings, and that the contractual terms were clear regarding coverage for the total loss of the vessel. In this context, the responsibility fell on the insurers, who had to prove a cause for exclusion, something that, according to the ruling, they failed to prove. The insurance companies had attempted to avoid payment by claiming that the 'Villa de Pitanxo' had serious deficiencies. They pointed out that there was a permanent list to port, that unauthorized modifications had been made to store extra fuel, that the ship was carrying excess cargo, that it was sailing in prohibited ice formation areas, and that the crew was depleted due to COVID-19 infections. However, the judge rejected each of these arguments. Regarding the ship's technical condition, it was found to have passed all regulatory inspections and to have valid certificates issued by the Maritime Authority and the Bureau Veritas classification society just days before the accident.

Investigation into sinking to be extended

The National Court involved in the case of the sinking of the “Villa de Pitanxo”, plans a new extension of the investigation, pending the publication of its report on what happened by the Permanent Commission for the Investigation of Maritime Accidents and Incidents (CIAIM). Judge Ismael Moreno asked them about the possibility of extending the investigation by six months, after having already extended it for another six months last summer (ending next March). In this way, the investigation would be extended until the beginning of September of 2025, if the parties accept this proposal. According to legal sources consulted, the deadline for response ends this week. However, some of the lawyers, and even the prosecutor of the case, have already requested the extension, because the CIAIM report is still missing.

Inspector testified at National Court

On Feb 9 an inspector testified at the National Court and explained that there were life vests for all the crew members aboard the 'Villa de Pitanxo'. The inspector from the Vigo Maritime Captaincy who inspected the ship before it set sail for Newfoundland on its last voyage, assured that the ship fully complied with the required navigability and safety measures. The inspector testified before the Central Court of Instruction number 2 of the National Court.