Faroese government wins 14-year fishing permit case

The Faroese government has won a dispute over experimental fishing permits that began more than 14 years ago, with the Supreme Court clearing the Ministry of Foreign Affairs and Fisheries of liability, KVF reported.

The Supreme Court upheld a 2024 ruling by the Eastern High Court, which had affirmed the judgment of the District Court of the Faroe Islands. The ministry does not have to pay compensation to Føroya Banki or fishing company Thor.

The case began in November 2008, when Føroya Banki bought the deepwater trawler Phoenix at a forced sale. Thor bought the vessel from the bank in late 2009. Phoenix had held an experimental permit to fish for stinglaks through 2008.

In late 2008, the number of experimental stinglaks permits was reduced from three to two, following a recommendation from the Marine Research Institute. Thor applied for a permit in 2009 but was turned down because the existing arrangement, with two permits already issued, remained in place.

The Supreme Court considered whether the government’s decisions on permits for 2009 and 2010 were invalid and whether the government was liable for damages. The claim was 3.7 million kroner, plus interest from 2014.

The court ruled that Føroya Banki had no right to an experimental permit after 2008 and had received neither a binding promise nor a legally protected expectation of one. For Thor, the decision on the 2010 permit was decisive; the court found that the Fisheries Ministry had legal authority for its decision.

Føroya Banki and Thor must pay the Ministry of Foreign Affairs and Fisheries more than 460,000 kroner in legal costs.