November 2006
Pollution Costs The World
Trafigura, a London-based multinational commodities company is facing a £100m compensation claim over allegations that it arranged to dump 400 tonnes of toxic waste in Ivory Coast, causing the deaths of 10 people and injuring up to 100,000 more.
It is alleged that the supertanker Probo Koala, having failed to rid itself of its toxic cargo in Europe because of high disposal costs, set sail to Africa to find a cheaper alternative. According to the claimants, this cheaper alternative involved contracting with "Tommy", a local Ivorian company who agreed to dispose of the waste. Tommy then proceeded to dump the toxic waste in open air sites, polluting the ground, water-table, and waterways of Abidjan, Ivory Coast’s economic hub. This action has resulted in the launching of a £100m claim in the British courts and the imprisonment of two Tafigura executives in the Ivory Coast.
Having learned from the Union Carbide disaster at Bhopal, lawyers acting on behalf of the claimants began proceedings at the High Court, viewing it as a preferable forum to the Ivory Coast’s courts. They are citing negligence by Trafigura and the resulting nuisance caused by its actions as the foundation for their claim. Treading this path of well worn concepts in the English common law provides several distinct advantages for both the victims of the dumping and environmental groups. It also provides a stark warning to other would-be polluters.
First and foremost, the standard of care against which the company is held is that expected of a company operating on British territory. With the dearth of domestic, European and international legislation on waste control, this would undoubtedly be of a higher level than environmental protections currently operated by the Ivory Coast
Secondly, the case sets a clear precedent for the holding to account by UK courts of UK companies operating throughout the world. Although still ruled by issues of jurisdiction relating to private international law, a successful prosecution would sound warning bells for astute companies to plan their environmental policy at a level greater than the traditional de minimis local standard of environmental protection, which often provide protection in name only.
Lastly, and perhaps of greatest concern to the victims is the amount of damages to be paid. As proceedings are being conducted in the UK, following UK law, damages payable would naturally be commensurate with those expected in this country regardless of the end benefactors. The paltry sums previously dispensed in foreign cases based upon the relative purchasing power of those affected by environmental disasters will be conspicuously absent from this case. Martin Deigh of Leigh Day & Co, one of the law firms leading the international case against Trafigura, summed up the principle well:
"Although the events took place thousands of miles away it is right that this British company is made to account for its actions by the British courts, and made to pay British levels of damages for what happened. A British company should act in Abidjan in exactly the same way as they would act in Abergavenny."
Thus corporate responsibility is no longer a buzz word, but something that all firms need to reflect and act upon with the utmost urgency. That is unless they have a spare £100m in the bank.
If you would like to examine any possible waste issues your company face, or, would like more information about the benefits of Corporate and Social Responsibility (CSR) contact Steve Stones on 01788 538 150.
Print this page