UK Supreme Court Confirms Jurisdiction Over Claims Brought Against UK Parent Companies for Acts Committed Abroad by Foreign Subsidiaries
On 12 February 2021, the UK Supreme Court (the Supreme Court) handed down judgment in the Okpabi and others (Appellants) v. Royal Dutch Shell Plc and another (Respondents). The case follows from a decision of the English Court of Appeal (the Court of Appeal) on 14 February 2018 which was discussed here.
The preliminary question before the Supreme Court regards the admissibility, before U.K. courts, of legal proceedings brought by a Nigerian farming and fishing community of approximately 40,0000 individuals against Royal Dutch Shell (RSD) – a UK-domiciled parent company – for oil pollution in the Niger Delta allegedly caused by RDS’s Nigerian subsidiary (Shell Petroleum Development Company of Nigeria Ltd (SPDC)).
In 2018, the Court of Appeal rejected the claim finding – among other things – that the claimants had failed to demonstrate an arguable case that RDS controlled SPDC’s operations in the Niger Delta or that RDS was otherwise responsible for the latter’s failures.
In its decision of 12 February 2021, the Supreme Court rejected the decision of the Court of Appeal as having erred in law.READ MORE