Council sues Shell for €5m over office site pollution

Meath County Council is seeking damages of up to €5 million in High Court proceedings against Irish Shell Limited over the company…

Meath County Council is seeking damages of up to €5 million in High Court proceedings against Irish Shell Limited over the company's admitted contamination, through the leakage of petrol and diesel hydrocarbons from a Shell filling station, of the adjoining site of the council's new civic offices at Trim.

Pat Butler SC, for the council, said Shell accepted responsibility for the cost of cleaning up the site arising from the contamination, which was detected in January 2001, but the site had still not been cleaned to a standard which, he contended, was agreed between the sides.

A further entry of contaminant was indicated in July 2003, he added. Shell had tried to renegotiate the clean-up standards, but the Environmental Protection Agency had held there was no reason to alter those standards.

Mr Butler said Shell was also refusing to accept responsibility for the costs incurred by the council through the continuing failure to have its civic offices constructed although, he contended, Shell had agreed in correspondence with the council to meet those costs.

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Solicitors for Shell had said in May 2001 that, as a "responsible" body, it would, if found liable for the contamination, act appropriately, Mr Butler said. However, it was not until legal proceedings were initiated, and then only during the discovery process, that the company had disclosed certain documents to the council regarding contamination incidents, including earlier incidents in 1998 and 1999.

He was opening proceedings before the President of the High Court, Mr Justice Joseph Finnegan, brought against Irish Shell Limited, owner of a site which includes a petrol filling station at Watergate Street, Trim, which adjoins the council's site.

The council wants up to €5 million damages, plus legal costs, for the costs incurred through the continuing failure to construct the civic offices. This claim is separate from the actual costs of cleaning the site.

The council also brought the action against Patrick Kavanagh and Patrick Kavanagh (Trim) and Sons Ltd, who had leased the filling station site from Shell. They denied liability or any responsibility for maintenance of the fuel tanks and pipes. Hugh Mohan SC, for the Kavanagh defendants, said yesterday Shell has given a full indemnity to his clients for any claims against them by the council.

After objections yesterday by Bill Shipsey SC, for Shell, that the council was in effect seeking specific performance of an alleged agreement to meet the costs arising from failure to construct the civic offices, although it had not pleaded such in legal documents, the case was adjourned to March 9th to allow the court consider whether to permit the council to amend its case.

Shell is opposing any such amendment.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times