The Bodo Community & Ors v Shell Petroleum Development Company of Nigeria Ltd
2014
TECHNOLOGY AND CONSTRUCTION COURT
UK
CORAM
- MR JUSTICE AKENHEAD
Areas of Law
- Civil Procedure
- Environmental Law
2014
TECHNOLOGY AND CONSTRUCTION COURT
UK
CORAM
AI Generated Summary
The legal proceedings concern costs related to preliminary issues of compensation claims under the Oil Pipelines Act 1990 for oil spills. Issues examined included claims under OPA, Shell's liability for illegal bunkering, valuation of damages, and the court's jurisdiction. Ultimately, Shell succeeded on most issues, warranting a costs award predominantly in its favor. The judgment emphasized avoiding complex cost assessments and adhering to general rules for awarding costs to the successful party. Issue-based cost orders, however, should be sparingly used due to practical complications.
Judgment
Mr Justice Akenhead:
Introduction
I handed down judgment on 8 preliminary issues on 20 June 2014 and issues arise on the question of the costs of the preliminary issues exercise. Much of the argument surrounded the extent to which each party won or lost on a number of the issues and as to whether an issues based costs order should be made. Reference can be made to the judgment reported on Bailii at [2014] EWHC 1973 (TCC) .
The Outcome
The issues were:
Issue 1: Whether the Claimants are only entitled to claim compensation in respect of the 2008 spills under the Oil Pipelines Act 1990 (“OPA 1990”)?
Issue 2: Whether SPDC can be liable under Section 11(5)(b) of the OPA 1990 to pay just compensation for damage caused by oil from its pipelines that has been released as the result of illegal bunkering and/or illegal refining?
Issue 3: Whether compensation under the following pleaded heads of loss is recoverable by individual claimants under the OPA: shock and fear; annoyance, inconvenience, discomfort and illness; distress and anxiety; aggravated damages; exemplary damages?
Issue 4: Whether the amount of just compensation recoverable under the OPA in relation to damage arising from oil spills (save in respect of the claims for loss of earnings) will be assessed in accordance with the diminution in value of the land and/or interest in land which have been damaged and/or the loss of the amenity value of that land or interests therein and/or consequential loss? If not, what alternative measure should be used?
Issue 5: Whether awards of just compensation under the OPA, or awards of general damages at common law, should be valued by reference to previous awards made by the English Courts or by reference to the value of land and/or the cost of living in Nigeria?
Issue 6: Whether the Court lacks jurisdiction to try some or all of the claims (as pleaded) on behalf of the Bodo Community and the claims by the individuals under the OPA 1990 and/or in nuisance and/or in negligence and/or Rylands v Fletcher by reason of Section 30 of the Civil Jurisdiction and Judgments Act 1982 ?
Issue 7: Whether the damage - both pecuniary and non-pecuniary - alleged to have been suffered by the claimants, in both the individual and community claim, are recoverable in claims (whether brought individually or by representative action) for damages in public nuisance?
Issue 8: Whether interest is recoverable on awards of just compensation and/or damages at common law for