MSC settles with Amplify Insurers

Haifa, Israel - October 11, 2021: MSC Mega Container Ship docked at Haifa shipping port.

MSC has entered into a settlement agreement with the subrogated insurers of Amplify Energy Corporation related to the 2021 Orange County oil spill incident.

As per MSC’s latest announcement, the settlement amount will be jointly funded by itself and shipping corporation Costamare without admission of responsibility or liability for the environmental damage that took place due to Amplify’s mismanagement of its underwater pipeline.

MSC has maintained that Amplify is solely responsible for the events that led up to the oil spill and that the insurers’ actions further worsened the pollution substantially.

According to MSC, Amplify failed to take reasonable preventative steps to better protect its pipeline despite becoming aware of deficiencies with the pipeline for months prior to the spill.

For these reasons, a preventable pollution event occurred which negatively impacted San Pedro Bay.

Amplify pleaded guilty to criminal negligence for its role in the oil spill.

Despite this, MSC has nonetheless agreed to the settlement to move forward from the incident productively.

READ: MSC accepts $45 million oil spill settlement

This announcement comes almost three months after the US Federal Maritime Commission (FMC) ordered MSC to pay furniture maker MCS Industries almost $1 million in reparations.

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