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Five Seafood Companies Withdraw From Lawsuit Against Icelandic State

Five seafood companies have decided to withdraw from a joint lawsuit against the Icelandic state due to a dispute over the allocation of mackerel quotas between 2011-2018, RÚV reports. Seven companies had decided to jointly sue the state, demanding over ISK 10 billion ($69.6 million/€63.9 million) in compensation. A statement from the five companies says the decision was made due to the impact COVID-19 will have on the Icelandic treasury.

Eskja, Gjörgur, Ísfélag Vestmannaeyja, Loðnuvinnslan, and Skinney-Þinganes are the five companies that have dropped out of the joint lawsuit. A statement from Supreme Court Attorney Sigurbjörn Magnússon on behalf of the five companies says the COVID-19 pandemic will have a profound effect on Iceland’s treasury and the entire Icelandic community.

“Widespread solidarity and mettle have characterised the community in the past weeks and months. Now everyone needs to work together,” the statement reads. “For this reason, the five undersigned fishing companies have decided to waive their claims against the Icelandic state.”

The seven companies (the final two being Vinnslustöðin and Huginn ehf.) filed the lawsuit last year, claiming that the state’s mackerel quota distribution between 2011-2018 was based on incorrect information and led to losses for the companies. Two Supreme Court rulings in 2018 recognised the state’s liability for damages Ísfélag Vestmannaeyja and Huginn ehf. believed to have incurred due to how the quota was distributed between 2011-2014.

Minister of Finance Bjarni Benediktsson stated earlier this week that he was optimistic the state would win the case, but in the unlikely situation that it did not, the damages would not be paid using tax money, rather would be financed via the fishing industry itself.

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