Total loses out twice in Buncefield High Court appeal
10 Mar 2010
London – Total UK Limited has lost a High Court appeal against a judgement last year making it wholly responsible for the damages caused by the explosions and fires at the Buncefield oil depot. At the same hearing, the judge also ruled that Shell was entitled to claim for loss of earnings due to the disruption caused by the accident on 11 Dec, 2005.
In his ruling on 4 March Lord Justice Walker upheld the decision that Total was in charge of operations at the Buncefield, rather than as it had contested site owner Hertford Oil Storage Ltd – a joint venture owned 60% by Total and 40% by Chevron. The decision confirms that claims for damages – estimated at up to £750 million – must be met by Total and will not be distributed in line with the shareholding of the two companies.
The judge also upheld a claim being made by Shell that Total should be liable for the loss of profits – reportedly put at £100 million – that Shell suffered as a result of the destruction of, or damage to, the tanks or pipelines. In doing so, he dismissed Total’s legal argument that ’only a legal owner or someone with an immediate right to possession has the right to claim damages for economic loss the consequence of damage to property.’
