Shell lawsuit (re oil spills & Bodo community in Nigeria)
|In 2012, members of the Bodo community in Nigeria filed a lawsuit against Shell in London High Court. They seek compensation for two oil spills and losses suffered to their health, livelihoods, and land. They also request clean up of the oil pollution. In 2015, Shell accepted responsibility for the spill and agreed to a £55 million out of court settlement and to assist in clean up.|
Members of the Bodo community in Nigeria filed a lawsuit against Shell in London High Court on 23 March 2012, seeking compensation for two oil spills, which occurred in 2008 and 2009 in the Niger Delta. The 15,000 plaintiffs ask for compensation for losses suffered to their health, livelihoods and land, and they ask for clean-up of the oil pollution. They allege that the relevant pipelines caused spills because they were over 50 years old and poorly maintained, and that Shell reacted too slowly after being alerted to the spills. Shell admits that its Nigerian subsidiary, the Shell Petroleum Development Company (SPDC), is liable for the spills. However, it denies the allegations of the plaintiffs and argues that the cause of the oil spills was oil theft and sabotage. It further disputes the alleged volume of oil spilled and the size of the area affected.
Shell has made settlement offers to the plaintiffs, which they refused on the basis that they were too low in light of the alleged damages suffered.
A preliminary hearing took place from 29 April to 9 May 2014 to consider Shell’s duty to take reasonable steps to prevent spillage from their pipelines – whether from malfunction or from oil theft. The judge ruled on 20 June 2014 that Shell could be held responsible for spills from their pipelines if the company fails to take reasonable measures to protect them from malfunction or from oil theft (known as “bunkering”). In November 2014, it was revealed that documents produced in the UK High Court suggested that Shell had been warned about the “risk and hazard” of the pipeline before the oil spill that affected the Bodo community. Shell "dismisses the suggestion that it has knowingly continued to use a pipeline that is not safe to operate".
In January 2015, Shell accepted its responsibility and agreed to a £55 million out of court settlement to pay for cleaning up the spill. An internationally recognized clean-up operation, the Bodo Mediation Initiative sponsored by the Dutch Government, was also established. In turn, communities agreed to put a hold on an onoing legal claim they had brought in the London High Court, but nonetheless reserved the right to resume the claim should the clean up be inadequately conducted.
In June 2017, Shell tried to strike out the lawsuit alleging that some members of the community obstructed clean up. The Court dismissed the claim. Shell then sought to prevent the community from going back to court by requesting to include a clause in the settlement, according to which any disruptive act by any resident of the Bodo community would lead to termination of the lawsuit. On 24 May 2018, a UK judge ruled that the Bodo community should retain the right to revive the claim for another year with no conditions attached, in the event of the clean-up not be completed to an adequate standard.
- "Nigeria's Bodo community claims win over Shell after latest UK court ruling", Estelle Shirbon, Reuters via Thomson Reuters Foundation, 24 May 2018
- "Shell announces £55m payout for Nigeria oil spills", John Vidal, Guardian (UK), 7 jan 2015
-“Shell in preliminary Nigeria oil spill judgement”, BBC News, 20 Jun 2014
- “Niger delta oil spill victims reject 'derisory' Shell compensation offer”, John Vidal, Guardian (UK), 13 Sep 2013
- “Shell seeks settlement for Nigeria oil spill”, Sarah Kent, Dow Jones Newswires, 06 Sep 2013
- “Shell 'uses sabotage claims to avoid blame for Nigeria oil spills'”, Tom Bawden, Independent (UK), 19 Jun 2013
- “Shell accepts liability for two oil spills in Nigeria”, John Vidal, Guardian (UK), 3 August 2011
- “[PDF] The true tragedy: delays and failures in tackling oil spills in the Niger Delta”, Amnesty Intl. & Centre for Environment, Human Rights and Development (CEHRD), Nov 2011
- Shell's Nigerian subsidiary agrees £55 million settlement with the Bodo community, Shell, 7 Jan 2015
- Senior English judge delivers ruling in preliminary Bodo trial, Shell Nigeria, 20 Jun 2014
- [DOC] Open letter on oil spills from the Managing Director of the Shell Petroleum Development Company of Nigeria Ltd (SPDC), Managing Director of the Shell Petroleum Development Company of Nigeria (SPDC), 04 Aug 2011
Leigh Day (lawyers for the plaintiffs):
- Shell agrees £55m compensation deal for Niger Delta community, 7 Jan 2015
- London High Court rules that Shell Nigeria could be legally liable for bunkering, 20 Jun 2014
- Background to the Bodo claim, 25 Apr 2014
- [PDF] Leigh Day & Co 2012 Annual Review, Dec 2012 [see p.23]
Royal Courts of Justice:
- Bodo Community & others v. Shell Petroleum Development Company of Nigeria Ltd, 20 Jun 2014