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You are here: BAILII >> Databases >> England and Wales High Court (Technology and Construction Court) Decisions >> The Bodo Community & Ors v CW Law Solicitors [2014] EWHC 3675 (TCC) (09 October 2014) URL: https://www.bailii.org/ew/cases/EWHC/TCC/2014/3675.html Cite as: [2014] EWHC 3675 (TCC) |
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2014] EWHC 3675 (TCC) |
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QUEEN'S BENCH DIVISION
TECHNOLOGY AND CONSTRUCTION COURT
The Rolls Building 7 Rolls Buildings London, EC4A 1NL |
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2014 |
B e f o r e :
____________________
THE BODO COMMUNITY AND OTHERS |
Claimants |
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| - and - |
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| CW LAW SOLICITORS |
Defendant |
____________________
1st Floor, Quality House, 6-9 Quality Court,
Chancery Lane, London WC2A 1HP.
Telephone No: 020 7067 2900. Fax No: 020 7831 6864
MS. JACQUELINE A. PERRY QC and MR. FULLERTON (instructed by Hogan Lovells International LLP) for the Defendant
MR. JOHN HEAPS (of Eversheds) appeared to represent the interests of Shell Petroleum Development Company Nigeria Limited
____________________
Crown Copyright ©
MR. JUSTICE AKENHEAD:
Bodo
community. Shell, which is the defendant in the proceedings in this country, has admitted liability for the oil spills, although there is a dispute as to the period of time over which the oil spills took place and the amount of oil which was discharged from the pipelines into the
Bodo
community area.
Bodo
area, are or have certainly been represented to be represented by the well-known solicitors firm Leigh Day. Shell and the claimants have agreed that the English court, and in particular the Technology and Construction Court, should have jurisdiction to resolve the disputes which have arisen between the parties. Over the past 12 months or more, I, as the judge charged with the case management and the eventual trying of the case, have made a number of procedural orders to lay down a timetable to bring the case on for trial on substantive issues between May and July next year, 2015. To that end, it has been largely agreed and resolved that the cases brought by the "lead claimants", numbering about 50, should be heard so that the court can give judgment on liability and quantum in relation to them. This is with a view to establishing what it is hoped will be representative findings so that the remaining thousands of claimants and Shell can then amicably resolve their disputes.
Bodo
Community and Others v Shell Petroleum Development Company of Nigeria Limited [
2014]
EWHC 1973 (TCC) on 20th June
2014.
This dealt largely with what were important Nigerian law issues and finally decided that the claimants' rights of compensation were fixed by reference to the compensation entitlements set out in the Oil Pipelines Act 1956. Shell has openly accepted that it is in principle liable to compensate appropriate claimants for damage and disturbance to the claimants' lands and/or to their livings. Although it could be said that on the preliminary issues dealt with on this judgment Shell were more winners than were the claimants, it cannot begin to be said that the claimants have lost the litigation. There remains, as I have indicated, their potentially significant entitlements to compensation under the Oil Pipelines Act 1956.
2014,
Shell informed Leigh Day that they had entered into a settlement agreement with the defendant in these injunction proceedings, namely CW Law Solicitors, in relation to what was said to have been over 7,400 individual residents from
Bodo
for losses allegedly suffered as a result of the 24-inch trans-Niger pipeline operational spills in 2008. I should say that those are exactly the same spills to which the English proceedings with which I am concerned relate.
Bodo
and I am told that a default judgment was entered against Shell, but there is an outstanding application by Shell to set that judgment aside.
2014.
It was becoming clear by or on 24 September that CW Law and Egbegi were in the process, so it was indicated, of seeking to sign up people who they indicated that they thought were their clients to get them to sign waiver forms which would demonstrate to Shell that Egbegi and CW Law acted for them and that they would abandon any claims which they otherwise had in relation to the financial settlement on offer from Shell.
2014
which has now been disclosed. It is clear on the face of the settlement agreement that CW Law and Egbegi, at least on its face, apparently acting as co-principals were representing the clients to which the settlement agreement was supposed to relate. There is no indication that one was inferior to another or that one was the agent of the other. Indeed the preambles and other parts of the settlement agreement appear to suggest, and I make no final finding on this, Preamble B, for instance, indicate that the claims brought by Harding Mitchell in this country in 2012 in respect of 7,450 individuals were now being conducted by CW Law on behalf of those individuals. It goes on in Preamble B to say that members of the "CW Law" group wish to settle their claims in the manner set out in this agreement. Preamble F says that CW Law hereby confirms that it will discontinue the English action set out below and hereby confirms that it acts for the individuals named in Appendix 1 hereto. It does not act or purport to act on behalf of the members of the
Bodo
Community in any representative capacity. Again, it would be surprising if CW Law were an agent of Egbegi if it would agree to wording such as that.
Bodo
community members.
"4. No individual listed in Appendix 1 hereto shall have the benefit of this Agreement or the offer herein by SPDC to settle his or her claim relating to the 2008 Oil Spills, unless or until it is established to the reasonable satisfaction of SPDC that such individual is exclusively represented by CW Law & Egbegi. CW Law undertakes to use all reasonable endeavours to co-operate with Leigh Day & Co to identify and resolve any issues which may arise in respect of Potential Overlap Claimants.
"5. No Leigh Day Lead Claimant shall have the benefit of this Agreement or of the offer herein by SPDC to settle his or her claim relating to the 2008 Oil Spills. SPDC should have the right to reject any Release signed by any such individual and/or which SPDC has reasonable grounds to believe might concern any such individual."
"IF YOU CW LAW SOLICITORS, INCLUDING YOUR PARTNERS, AGENTS, SERVANTS (INCLUDING PARTNERS, EMPLOYEES, AGENTS AND SERVANTS OF EGBEGI & CO.) DISOBEY THIS ORDER YOU MAY BE HELD TO BE IN CONTEMPT OF COURT AND MAY BE IMPRISONED, FINED OR HAVE YOUR ASSETS SEIZED."
"a. By 4 pm on 1 October2014,
CW Law Solicitors shall disclose the names of any persons who to their knowledge have signed a waiver or settlement agreement pursuant [to] the agreement between CW Law and the Shell Petroleum Development Company Nigeria Ltd of 12 August
2014
and shall provide copies of each signed waiver and settlement agreement.
b. CW Law Solicitors shall file any other evidence by 4 pm on 1 October2014.
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c. Leigh Day shall file any evidence in response by 4 pm on 6 October2014.
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d. The parties shall file skeleton arguments by 4 pm on 7 October2014."
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"Until the return date or further Order of the Court, the Respondent", that is CW Law, "must not take any steps in relation to the settlement of claims made by persons seeking compensation from the Shell Petroleum Development Company Nigeria Ltd or their Servants or Agents in respect of damages arising from oil pollution in theBodo
Creeks."
2014
a list of the names of all persons who signed a waiver or settlement agreement, pursuant to the agreements with Shell, and copies of the signature page of the agreement of each such individual and one full copy of the settlement agreement together with copies of any individual amendments or changes to the standard agreement. In addition, he ordered that the defendant was to file and serve, by no later than 12 noon on 6 October
2014,
a sworn affidavit from Mr. Amadin Nicholas Ekhorutomwen (the defendant's solicitor) explaining: (a) his non-compliance with the terms of the order made on 24 September; (b) the contents of paragraph 18 of his witness statement dated 29 September
2014
and further explaining why he was not therefore in contumelious default of the Order made on 24 September
2014;
and (c) why the agreement in the name of Promise Saafee was signed on 30 September
2014.
"I add that I am told by Mr. Egbegi that as at the time of the injunction, all persons signed up to what has been deemed List A had executed the releases and I am able to ask Mr. Egbegi if the court so directs, to make the executed releases available to the Court as soon as reasonably practicable."
2014,
and that explains why Stuart-Smith J asked for an explanation about that.
Bodo
community, that some of those who are apparently listed as being represented by CW Law and Egbegi have never instructed either of those two firms and certainly not authorised them to enter into any settlement agreement or that at least a large number of them have signed any release forms. When one looks at the release forms, it appears that Leigh Day believe that some signatures do not obviously relate to the signatures or marks which they have from the same people on letters of instruction and the like which they have had over the years. Leigh Day have contacted a not insignificant number of the people they believe are their clients whose evidence has indicated that they had never instructed CW Law and/or Egbegi and/or that they had never instructed them to settle on their behalf. There is a real belief that some or all of these releases or a not insignificant number of these releases are forged or fraudulent documents or at the very least for one reason or another have not been signed by the people who they purport to be from.
Bodo
community area and at least talking to a number of people misrepresenting the position in relation to the current English litigation with which I am concerned. For instance, a number of them appear to have been told by representatives either of the defendant or Egbegi that this English litigation has been lost by Leigh Day and therefore the implication is that in effect any settlement from Shell must be a good one. If that misrepresentation has been made to clients of the claimant and it has been made on behalf of the defendant or its co-principal, if indeed it is a co-principal, Egbegi, then that would be a very serious misrepresentation because, as I have already indicated, it cannot begin to be said that the claimant in these TCC proceedings has lost the case. Indeed it is almost inevitable, and I think Shell through their counsel have indicated in the past, that there will be compensation payable to a not insignificant number of individual claimants. Doubtless the battle will be fought hard on both sides, but it cannot begin to be said that the claimant has lost that litigation. Other misrepresentations, it is said, have been made to people whom Leigh Day believe are their clients.
Bodo
Creeks is to be continued. Further orders were sought at paragraph 10 of the draft produced by or on behalf of Mr. Hermer QC for the claimant.
2014,
shall have no effect in the courts of England and Wales in relation to any claims in the Bonny oil pipeline litigation. We need there to add the case references of this case, the TCC cases; (b) permission to the defendant and to SPDC to discharge or vary the orders upon giving Leigh Day no less than 14 days' notice in respect of each client; (c) by midday on 20th October
2014
the defendant shall serve upon the court and Leigh Day copies of letters or records of instruction together with any identity card numbers and any copies of the identity card documents of any claimant represented by Leigh Day in the Bonny oil pipeline litigation who the defendant claims to represent and who it asserts is or may be covered by the agreement between CW Law and SPDC; (d) by midday of 20th October
2014, CW Law is to clarify in writing to Leigh Day whether it still maintains that it represents any of the claimants in the current litigation and, if so, which; and (e) within seven working days of being notified in writing thereof by Leigh Day, CW Law shall provide the originals of waivers in respect of 100 persons selected by Leigh Day.
MS. PERRY: Sorry, my Lord, could your Lordship just repeat the timetable for that, please.
MR. JUSTICE AKENHEAD: Within three working days, that is by close of business on Tuesday, the claimant indicates those alleged non-compliances with the order upon which it would seek committal for contempt and then within 10 working days of receipt of that, if everything goes according to plan, 13 working days from now, CW files any further evidence it wishes.