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Shell REUTERS Rick Wilking

Nigerians seek $1 bln from Shell over oil spills

10/24/2011 COMMENTS (0)

ABUJA, Oct 24 (Reuters) - A Nigerian community from the oil-rich Niger Delta has filed a lawsuit in the U.S. District Court for the Eastern District of Michigan, seeking $1 billion in compensation from Anglo-Dutch oil company Shell for decades of pollution caused by oil spills. The case was filed in Detroit last week, citing the Alien Tort Statue.

The suit was brought on behalf of the people of Ogale in the Eleme local government area of the Niger Delta, where a United Nations environmental report earlier this year found people were drinking water contaminated with carcinogens at 900 times the World Health Organization's safety limit.

Shell operates "well below internationally recognized standards to prevent and control pipeline oil spills, the complaint lodged by the Nigerian plaintiffs said. "(The company) has not employed the best available technology and practices that they use elsewhere in the world."

Shell declined to comment. It has said in the past that the majority of oil spills in the Niger Delta are caused by oil theft and sabotage to its facilities but it clears up spills whatever the cause as quickly as possible.

The Alien Tort Statute, which dates back to 1789, was revitalized in the 1980s with a series of civil suits in the United States against individuals and corporations for alleged breaches of international law in their operations abroad. Last year however, the U.S. Court of Appeals for the Second Circuit upheld a finding by the U.S. District Court for the Southern District of New York that corporations could not be sued under the Alien Tort Statute. Plaintiffs in that case, which also involves Shell oil operations in Nigeria, petitioned the U.S. Supreme Court to address the question of corporate liability under the statute.

Last week the U.S. Supreme Court agreed to hear the issue, which has created a split at the circuit court level. In contrast to the Second Circuit, the D.C. Circuit, Seventh Circuit and Eleventh Circuit have all found that corporations can be held liable under the statute.

The new case is Obe et al v. Royal Dutch Shell, PLC et al in the U.S. District Court for the Eastern District of Michigan, no. 11-14572.

For the plaintiffs: Kayode Oladele of Juris International and Benjamin Whitfield of Benjamin Whitfield, Jr. Assoc.

For Royal Dutch Shell: Not immediately available.

(Reporting by Joe Brock; additional reporting by Rebecca Hamilton in New York)

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