• Friday, March 29, 2024
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UK Supreme Court rules Zambians can sue miner Vedanta

Vedanta

Thousands of Zambian villagers can bring a legal challenge in the English courts against mining company Vedanta over alleged pollution in Zambia, the UK’s highest court ruled on Wednesday.

The Supreme Court said that the lawsuit brought by 1,800 Zambian villagers can be heard in London despite arguments by Vedanta that the case should be tried by the Zambian courts. It ruled that the lawsuit could proceed in England because the claimants, who are all living in poverty, would struggle to access justice in Zambia and the country does not permit “no-win, no-fee” arrangements for claimants to pay legal fees.

The ruling is significant because it paves the way for more environmental claims to be brought in London against large multinationals with global operations — particularly from claimants living in poorer countries where there is a difficulty in accessing legal funding. The ruling also indicates that companies have a duty of care to third parties for the commitments they make publicly regarding their subsidiaries.

Lord Briggs, a Supreme Court justice, said that “the non-availability of access to justice in Zambia means that the proceedings against both defendants must continue in England”. He added that the parent company of a subsidiary has a duty of care to third parties “if in published materials, it holds itself out as exercising that degree of supervision”.

The Zambian case relates to allegations by those living near the huge Nchanga Copper mine, owned by KCM that is a subsidiary of UK-based Vedanta. The Zambian villagers claim their health has been damaged and their livestock, farms and drinking water have been affected by poisonous emissions from the mine into local rivers over many years. The villagers are suing Vedanta and KCM for compensation.

Martyn Day, senior partner at Leigh Day and representing the Zambians, said the ruling “will send a strong message to other large multinationals that their Corporate and Social Responsibility (CSR) policies should not just be seen as a polish for their reputation but as important commitments that they must put into action”.

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Samarendra Das of Foil Vedanta, an activist group, said the ruling could make it possible for many of the Indian communities affected by alleged pollution and human rights abuses by Vedanta to also to seek justice in the UK.

“As the UN’s Sustainable Development Goals recognise, sustainable development and access to justice go hand in hand. The judges ruling today recognises and enforces that principle,” she said.

Vedanta said that Wednesday’s ruling was “procedural” on whether the English courts could hear the claim. “It is not a judgment on the merits of the claims. Vedanta and KCM will defend themselves against any such claims at the appropriate time,” it said.

The ruling could also affect a number of ongoing cases. Leigh Day also represents 40,000 Nigerian fisherman who are bringing a claim against Royal Dutch Shell about alleged oil spills in the Niger Delta. The Nigerian claimants are appealing to the Supreme Court about whether the case can be heard in London.

 

Jane Croft , FT