Supreme Court grants permission to appeal to Nigerian Communities in their fight against Shell

The decision will allow the two communities from Bille and Ogale in the Niger Delta to appeal to the UK’s highest court, havi­­ng suffered from decades of pollution from Shell’s pipelines.
 
They have taken their case to the English Courts on the basis that Royal Dutch Shell (RDS), which is headquartered in London, is legally responsible for the environmental failures of the Shell Petroleum Development Company of Nigeria (SPDC), a subsidiary of RDS.
 
The Supreme Court hearing will appeal a judgment from February 2018, from the Court of Appeal in London, which upheld an earlier High Court judgment, that the English Court does not have jurisdiction over the claims.
 
The original High Court Judgment from January 2017 ruled that RDS was merely a holding company which did not exercise any control over its “wholly autonomous” Nigerian subsidiary, SPDC.
 
Lawyers from Leigh Day immediately appealed the decision from the Court of Appeal and although the Judges agreed that the High Court’s decision was flawed, by a majority the Court ruled that there was insufficient evidence to hold RDS legally liable (with a strong dissent from Lord Justice Sales).   
 
The claimants applied for permission for the case to be heard in the Supreme Court. The decision on whether the Shell case could proceed was stayed whilst the Supreme Court heard a similar case brought by Leigh Day on behalf of almost 2,000 Zambian villagers against Konkola Copper Mines and its parent company Vedanta Resources Plc.
 
In April this year the Supreme Court ruled in the Vedanta case that companies can be held to account for the commitments they make publicly, regarding their subsidiaries and their commitments to the communities they serve.
 
Following this judgment in the Vedanta case, the case against Royal Dutch Shell has been allowed to proceed to the Supreme Court.
 
Daniel Leader, a partner at Leigh Day who is representing the Nigerians, said: “We are delighted to have been granted permission to take this case against Shell to the Supreme Court. We hope that the Court will apply the principles set out in the Vedanta judgment to this case and allow this case to proceed in London”.
 
“We believe the era of corporate impunity is drawing to a close.  It is no longer acceptable for companies to make billions out of developing world resources whilst causing devastating damage to the environment and local communities.”
 
King Okpabi, the Ruler of the Ogale Community said: “The English Courts are our only hope because we cannot get justice in Nigeria. So let this be a landmark case.  I will not run away from my responsibility to defend the people of Ogale against one of the largest corporations of the world which treats us with contempt.” 

Background

Leigh Day is representing two Nigerian communities (the Ogale Community and the Bille Community), in claims against Shell’s parent company, RDS, and its Nigerian subsidiary, SPDC.
 
Both communities allege that they have suffered systematic and ongoing oil pollution for years because of Shell’s operations. Indeed, the oil pollution to Ogale’s water wells was carefully documented by the United Nations Environment Programme in 2011 and signs have been erected around the town prohibiting the use of water wells.
 
Shell does not dispute that both communities have been severely polluted by its oil, or that there is yet to be an adequate clean up. The communities are seeking justice through the English Courts against the parent company because they maintain that there is sadly no prospect of justice in Nigeria.
 
Cases of this kind in Nigeria tend to take 20 years or more, a situation the English Court of Appeal recently described as “beyond catastrophic” (IPCO (Nigeria) Limited v Nigerian National Petroleum Corporation [2015] EWCA). 

The Ogale Community

The Ogale community is a rural community of about 40,000 people situated in Ogoniland in the Niger Delta.
 
The people of Ogale have traditionally been either crop farmers and fishermen who rely on Ogale’s tributaries and waterways as fishing areas. Shell has a long legacy of oil pollution in Ogale.
 
According to Shell’s own records, the community has been impacted by at least 40 oil spills from Shell’s pipelines and equipment since 1989, including 23 spills in the past 4 years. Shell’s pipelines and infrastructure in Ogale are several decades old and in a poor state of repair making the area vulnerable to oil spills which have caused, and continue to cause, long-term contamination of the land, swamps, groundwater and waterways in the Community.
 
In 2011 the United Nations Environmental Programme (UNEP) published an Environmental Assessment of Ogoniland which included extensive testing of the Ogale Community.
 
UNEP’s testing of Ogale reported serious contamination of agricultural land and waterways in the community as well as its groundwater, exposing Ogale’s inhabitants to serious health risks. Groundwater oil contamination in Ogale was found to be 1,000 times higher than levels permitted under Nigerian law and water in the community was found to be unfit for human consumption.
 
Community members report that the oil contamination has impacted on their farming productivity, and fishing has all but ended in the community.
 
Residents are not being provided with clean drinking water – the water scheme that had been introduced in the community has not functioned for several years and community members who are not able to pay for alternative water often have to drink contaminated water.

The Bille Community

Bille is located in the Degema Local Government Area (LGA) in Rivers State, Nigeria. Populated by nearly 13,000 residents, it is comprised of a number of island towns and fishing settlements that are surrounded entirely by water.
 
Residents of Bille have traditionally relied on fishing to sustain their way of life. According to the legal action, the creeks, mangroves and island communities in Bille have been devastated by oil emanating from an oil pipeline known as the Nembe Creek Trunkline (NCTL) since the replacement of the Bille Section of the pipeline in 2010. It is alleged that 13,200 hectares of mangrove have been damaged by oil spilled from the NCTL and other oil infrastructure. This is the largest loss of mangrove habitat in the history of oil spills, which has destroyed the livelihoods of the Bille people.