Court Rules Nigerians Cannot Pursue Shell Spill Claim In England

The Court of Appeal in London ruled on Wednesday that two
Nigerian communities cannot pursue Royal Dutch Shell in English
courts over oil spills in Nigeria’s Delta region.

The split decision upheld a High Court ruling in 2017 that was a
setback to attempts to hold British multinationals liable at home
for their subsidiaries’ actions abroad.

The court rejected the appeal from law firm Leigh Day on behalf
of Nigeria’s Bille and Ogale communities and upheld a ruling that
English courts do not have jurisdiction over claims against Shell’s
Nigerian subsidiary Shell Petroleum Development Company (SPDC).
SPDC is jointly operated with the Nigerian government.

Shell said the court “rightly upheld” the earlier ruling, and
said Nigeria’s “well-developed justice system” was the correct
place for the claims. Leigh Day said the two Nigerian communities
intended to bring the case to Britain’s Supreme Court.

“We are hopeful that the Supreme Court will grant permission to
appeal and will come to a different view,” Leigh Day partner Daniel
Leader said. Newsmen report that n 2012 the European Court of
Justice ruled that Shell parent companies “…in fact exercised
decisive influence over their joint subsidiary’s conduct”; Shell
Petroleum NV v. European Commission [2012] at para 51.

Further, in 2015 the Dutch Court of Appeal ruled that
“Considering the foreseeable serious consequences of oil spills to
the local environment from a potential spill source, it cannot be
ruled out from the outset that the parent company may be expected
in such a case to take an interest in preventing spills… The
communities appealed against the ruling.

Day is representing over 40,000 Nigerian from two communities
(the Ogale Community and the Bille Community) in claims against
Royal Dutch Shell plc (RDS) and its Nigerian subsidiary, the Shell
Petroleum Development Company of Nigeria (SPDC). Both communities
allege that they have suffered systematic and ongoing oil pollution
for years because of Shell’s operations.

Shell does not dispute that both communities have been severely
polluted by its oil, or that it has yet to clean up the oil.
However, in November 2016, Shell sought to block the claims in
London on the grounds the London based parent company (Royal Dutch
Shell) was not legally responsible for the pollution caused by its
Nigerian subsidiary and that it was open to the communities to seek
redress through the Nigerian courts.

By contrast, the claimants argued that Royal Dutch Shell
exercised significant direction and control over its’ Nigerian
subsidiary and was, therefore, liable for its systematic pollution
of Ogale and Bille.

The Court of Appeal in London ruled on Wednesday that two
Nigerian communities cannot pursue Royal Dutch Shell in English
courts over oil spills in Nigeria’s Delta region.

The split decision upheld a High Court ruling in 2017 that was a
setback to attempts to hold British multinationals liable at home
for their subsidiaries’ actions abroad.

The court rejected the appeal from law firm Leigh Day on behalf
of Nigeria’s Bille and Ogale communities and upheld a ruling that
English courts do not have jurisdiction over claims against Shell’s
Nigerian subsidiary Shell Petroleum Development Company (SPDC).
SPDC is jointly operated with the Nigerian government.

Shell said the court “rightly upheld” the earlier ruling, and
said Nigeria’s “well-developed justice system” was the correct
place for the claims. Leigh Day said the two Nigerian communities
intended to bring the case to Britain’s Supreme Court.

“We are hopeful that the Supreme Court will grant permission to
appeal and will come to a different view,” Leigh Day partner Daniel
Leader said. Newsmen report that n 2012 the European Court of
Justice ruled that Shell parent companies “…in fact exercised
decisive influence over their joint subsidiary’s conduct”; Shell
Petroleum NV v. European Commission [2012] at para 51.

Further, in 2015 the Dutch Court of Appeal ruled that
“Considering the foreseeable serious consequences of oil spills to
the local environment from a potential spill source, it cannot be
ruled out from the outset that the parent company may be expected
in such a case to take an interest in preventing spills… The
communities appealed against the ruling.

Day is representing over 40,000 Nigerian from two communities
(the Ogale Community and the Bille Community) in claims against
Royal Dutch Shell plc (RDS) and its Nigerian subsidiary, the Shell
Petroleum Development Company of Nigeria (SPDC). Both communities
allege that they have suffered systematic and ongoing oil pollution
for years because of Shell’s operations.

Shell does not dispute that both communities have been severely
polluted by its oil, or that it has yet to clean up the oil.
However, in November 2016, Shell sought to block the claims in
London on the grounds the London based parent company (Royal Dutch
Shell) was not legally responsible for the pollution caused by its
Nigerian subsidiary and that it was open to the communities to seek
redress through the Nigerian courts.

By contrast, the claimants argued that Royal Dutch Shell
exercised significant direction and control over its’ Nigerian
subsidiary and was, therefore, liable for its systematic pollution
of Ogale and Bille.