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CORRECTED-UPDATE 2-Dutch ruling on Nigeria could prompt more environmental cases

Fri, 18th Dec 2015 14:28

(Removes erroneous reference to overturning of 2013 ruling, par2)

* Shell ordered to provide documents on cause of spills

* Shell disappointed court assumes internationaljurisdiction

* Netherlands may be used for cases against Dutch companiesabroad

* Court has not yet ruled on Shell parent company liability

By Thomas Escritt

THE HAGUE, Dec 18 (Reuters) - A Dutch appeals court ruled onFriday that Royal Dutch Shell may be held liable foroil spills at its subsidiary in Nigeria, potentially opening theway for other compensation claims against multinationals in theNiger Delta and elsewhere.

The ruling was hailed by rights groups as a victory forvictims of environmental pollution worldwide, while Shell saidit was disappointed.

Judges in The Hague ordered Shell to make available to thecourt documents that might cast light on the cause of the spillsand whether leading managers were aware of them.

A lower Dutch court in 2013 had found that Shell'sDutch-based parent company could not be held liable for leakagesof oil at its Nigerian subsidiary.

The legal dispute dates back to 2008 when four Nigerianfarmers and campaign group Friends of the Earth filed suitagainst the oil company in the Netherlands, where its globalheadquarters is based.

"Shell can be taken to court in the Netherlands for theeffects of the oil spills," the court stated on Friday. "Shellis also ordered to provide access to documents that could shedmore light on the cause of the leaks."

The court still has to decide if Royal Dutch Shell is infact resposible for the Nigerian spills. The court will continueto hear the case in March 2016.

Judge Hans van der Klooster said the court had also foundthat it "has jurisdiction in the case against Shell and itssubsidiary in Nigeria".

Shell's Nigerian subsidiary, Shell Petroleum DevelopmentCompany of Nigeria Ltd (SPDC), said in a statement: "We aredisappointed the Dutch court has determined it should assumeinternational jurisdiction over SPDC."

"We believe allegations concerning Nigerian plaintiffs indispute with a Nigerian company, over issues which took placewithin Nigeria, should be heard in Nigeria," it said.

UNIQUE RULING

Shell has always blamed the leakages on sabotage which underNigerian law would mean it is not liable to pay compensation.But the Dutch court said on Friday: "It is too early to assumethat the leaks were caused by sabotage."

"The ruling is unique and can pave the way for victims ofenvironmental pollution and human rights abuses worldwide toturn to the Netherlands for legal redress when a Dutch companyis involved," Friends of the Earth Netherlands said in astatement.

In January 2013, the district court in The Hague ruled thatone of the farmers in the original suit was eligible forcompensation from Shell's Nigerian division for spills on hisland in the Niger Delta, the heart of Nigeria's oil industry.

The farmer appealed over whether the parent company shouldalso be liable.

In a separate case, Shell agreed in January to pay out 55million pounds ($82 million) in out-of-court compensation fortwo oil spills in Nigeria in 2008 after agreeing a settlementwith the affected community in the Delta. (Additional reporting by Anthony Deutsch; editing by RichardBalmforth)

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