Financial news

Nigerian residents join suit against Shell plc in UK High Court – JURIST

Residents of Ogale and Bille communities in Nigeria Thursday joined the lawsuit against Shell plc seeking compensation for oil spillage in the Niger delta. The suit has been filed in UK’s High Court with the plaintiffs being represented by Leigh Day Law firm. This follows Shell’s report which claims to have made almost  $40 billion in revenue last year, hence begging the question of corporate responsibility in environmental protection.The residents of these communities claim that Shell Development Company of Nigeria Limited is responsible for oil spillages in the Niger Delta which have occurred as a result of its operations. According to a report by Amnesty International, the spillages have been occurring since 2009 and have costed the residents their livelihoods. The report states that the numbers of oil spillages have often been massively misrepresented and therefore, cannot account for proper compensation of residents. They seek to sue the Royal Dutch Shell Company claiming that the parent company has a duty of care to the residents of these communities despite differences in location.The suit follows a judgement by the UK Supreme Court which allowed the applicants to file a lawsuit against the Royal Dutch Company in the UK. The Court dismissed Shell’s argument that sought to absolve themselves of their duty of care on the basis of them being a parent company. The Supreme Court stated that the Court of Appeal’s decision to allow their claim was based on erroneous reasoning.Amnesty International has pledged its support for the legal action undertaken.