This article discusses the significant Supreme Court decision in Okpabi v Royal Dutch Shell Plc(1) which considered parent company liability. This decision on jurisdiction provides helpful guidance on the circumstances in which a UK-domiciled parent company may owe a common law duty of care in respect of the actions of a foreign subsidiary.
Facts
The claimants, comprised of 42,355 individuals from the Niger Delta region, brought a claim in negligence against Royal Dutch Shell (RDS), incorporated in England, and one of its Nigerian subsidiaries, Shell Petroleum Development Company of Nigeria Ltd (SPDC).
In summary, the claimants alleged that they had suffered substantial environmental damage as a result of oil spills and pollution from pipelines operated by SPDC in Nigeria, such that natural water sources used for drinking water, fishing, agricultural, washing or recreational purposes were no longer safe to use. The claimants argued that RDS owed them a common law duty of care on
Oil Pollution: UK Supreme Court Upholds Niger Delta Communities’ Case Against Shell Company
The court stated that the appeal was allowed, which means that the case was legal and could be resolved by a competent High Court.
by Saharareporters, New York
Mar 07, 2021
The Supreme Court of the United Kingdom Parliament Square in London has upheld the appeal of Okpabi and others, representatives of the Niger Delta communities in Nigeria, against the Royal Dutch Shell PLC over oil pollution and spillage in the region.
The court stated that the appeal was allowed, which means that the case was legal and could be resolved by a competent High Court.
Citi Bank and two other commercial banks are in big trouble for violating a court order freezing the accounts of Dutch Oil giant, Royal Shell, in a case involving the alleged theft of over two million barrels of crude.
A federal court in Lagos had issued an injunction barring Royal Dutch Shell’s Nigerian subsidiaries from withdrawing money at 20 local banks until it ringfences potential damages in a lawsuit brought against the oil major by Aiteo Eastern E&P.
Aiteo is accusing Shell of deliberate improper metering of the Nigerian company’s oil exports from the Bonny Light terminal. It is seeking $2.7 billion over the pipeline deal plus $1.28 billion for lost oil sales, the court documents show.
A Federal High Court in Lagos has fixed March 2 to rule on whether to first hear an application challenging its jurisdiction or committal proceedings against 2 banks for disobeying its order to freeze the accounts of Shell Petroleum Development Company, SPDC.
Justice Oluremi Oguntoyinbo fixed the date after hearing arguments of lawyers in the case on which application should be heard first.
AITEO Eastern E & P Company Ltd through its counsel, Kemi Pinheiro SAN had filed form 48 as provided under the Sherrif and Civil Process Act to initiate contempt proceedings against the banks and its officials.
Pinheiro told the judge that the alleged contemnors willfully disobeyed the court’s interim orders of January 25, 2021, directing them to block SPDC accounts, for allegedly “interfering, obstructing and/or frustrating compliance with the interim orders.”
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Justice Oluremi Oguntoyinbo of a Federal High Court, Lagos has fixed March 2 for ruling on whether to entertain a motion challenging its jurisdiction first or contempt proceedings against three banks for allegedly disobeying an order to block Shell Petroleum Development Company of Nigeria Ltd bank accounts.
Justice Oguntoyinbo fixed the date after hearing the argument of counsel on which application should be heard first.
The judge took arguments in favour of hearing a committal application filed by the plaintiff AITEO Eastern E & P Company Ltd through its counsel Kemi Pinheiro SAN, who led Oladapo Olanipekun SAN and Emeka Ozoani SAN.