Alame and others v (1) Shell plc; (2) The Shell Petroleum Development Company of Nigeria Ltd

The Claimants include thousands of individuals, who allege that there have been numerous escapes of oil from the Defendants’ infrastructure, but (absent disclosure and expert evidence) cannot presently identify which specific escapes of oil caused them to suffer loss and damage. The High Court held that this meant that the Claimants are advancing a so-called ‘global claim’ (a concept borrowed from contractual disputes in the construction sector), and that the litigation cannot be progressed by way of lead Claimants, i.e. the usual method of managing complex group actions. The Court of Appeal allowed an appeal by the Claimants, holding that (i) absent any relevant pleading, “the concept of global claims should have no place in this litigation”; and (ii) the proceedings are “a paradigm example of a case which can only be progressed by reference to lead cases”.

The Court of Appeal also dismissed an appeal by the Defendants, who had sought to overturn a decision granting the Claimants permission to amend their Particulars of Claim to provide further particulars of alleged escapes of oil.

The Court of Appeal’s judgment has significant implications for group actions in respect of environmental damage, including in relation to (i) the pleading of such claims, especially in circumstances where Claimants have limited information at their disposal; (ii) the importance of disclosure, “to ensure that the parties are on an equal footing in relation to access to relevant information”; and (iii) the role of lead cases in enabling the efficient conduct of group litigation.

A copy of the Court of Appeal’s judgment is available here.

George Molyneaux acted for the Claimants, instructed by Leigh Day and with Anneliese Day KC (Fountain Court), Edward Craven (Matrix) and Alistair Mackenzie (2TG).