Britain’s top court ruled weekend that Shell can be held liable in the English courts for oil pollution allegedly caused by its subsidiary in Nigeria, a landmark decision on the accountability of British parent companies for their operations overseas.
She’ll had earlier appealed ruling that it pays claims for oil spillage in the Niger-Delta region of Nigeria.
Royal Dutch Shell might owe a duty of care to 42,500 Nigerian citizens whose property was polluted, the Supreme Court in London has ruled.
The U. K. Supreme Court held that Royal Dutch Shell PLC could owe a duty of care to 42,500 Nigerian citizens whose property was polluted, allegedly as the result of leaks from oil pipelines operated by the oil giant.
Senior judges said there was an arguable case that UK-domiciled Shell, one of the world’s biggest energy companies, is responsible, in the latest test of whether multinationals can be held to account for the acts of overseas subsidiaries.
Represented by law firm Leigh Day, the group of Nigerians have argued that the parent company Shell owed them a duty of care because it either had significant control of, and was responsible for, its subsidiary SPDC. Shell countered that the court had no jurisdiction to try the claims.
“(The ruling) also represents a watershed moment in the accountability of multinational companies. Increasingly impoverished communities are seeking to hold powerful corporate actors to account and this judgment will significantly increase their ability to do so,” Daniel Leader, partner at Leigh Day, said.
“UK common law is also used in countries like Canada, Australia and New Zealand so this is a very helpful precedent.”
