The High Court has ruled that Shell plc and its former Nigerian subsidiary can be held legally responsible for legacy, or historic, oil pollution which has devastated the environments of two communities in Nigeria. The judgement means that Shell, and its former Nigerian subsidiary, can be held liable for oil spills and leaks going back many years.
Years of chronic oil spills have left the Bille and Ogale communities, which have a combined population of 50,000, without clean water, unable to farm and fish and with serious ongoing risk to public health. Shell tried to prevent these claims from getting to trial with a range of technical, legal arguments that have now been firmly rejected by the Court.
After a four-week High Court preliminary issues trial from 13 February to Friday 7 March 2025, Mrs Justice May ruled on Friday 20 June 2025 that Shell’s attempts to restrict the scope of the upcoming full trial, to be held in 2027, had failed. She made several findings that are important for environmental claims generally.
· Shell had argued that there was a strict five-year limitation period and that the communities were barred from claiming in relation to any oil spills that took place more than five years ago, even if they had not cleaned up the pollution. The judge rejected this and left it open to the communities to claim for oil spills which occurred more than five years ago, including if Shell has failed to clean them up properly.
· The judge found that a failure to clean up could be an ongoing breach of Shell’s legal obligation to clean up and could create a fresh right to make a legal claim for every day that the pollution remained. The judge also considered that an oil spill could be a trespass and, where that was the case, “a new cause of action will arise each day that oil remains on a claimant’s land”.
· This is a very significant development in these claims and more broadly for legacy environmental pollution caused by multinational corporations around the world.
The legal position following the UK Supreme Court case of Jalla v Shell International Trading and Shipping Vo Ltd [2024] AC 595 appeared to be that corporations could not be held liable for legacy pollution if the claimants failed to file their claim within the relevant limitation period.
However, the Judge distinguished this claim from Jalla and made it clear that the claimants are not prevented from bringing claims if a polluter has left contamination on their land, even if a spill happened many years ago.
(Premium Times)
