Firm sued over alleged dioxin in feed

A CO WEXFORD company, which is alleged to have supplied animal feed containing dioxins, is insured for a maximum €6.5 million but expects claims against it to be substantially higher, the Commercial Court has been told.

Brian Kennedy, for Millstream Recycling Ltd, Clohamon Mills, Bunclody, said potential claimants should be aware that his client was subject to an indemnity for a maximum €6.5 million and it was anticipated claims would well exceed that amount.

Mr Kennedy also said investigations into the alleged contamination had concluded and the company would be able to deliver its defence to the claims against it by July 31st.

Mr Justice Peter Kelly, who dealt yesterday with procedural matters in two actions against Millstream, noted Mr Kennedy’s remarks.

The investigations into the course of the alleged contamination were carried out by, among others, the Garda and the PSNI, the Police Service of Northern Ireland.

Millstream Recycling had previously said it was making no admissions in relation to the claims made against it and was advised there were various unresolved issues in relation to the cause of the contamination.

It added that it was awaiting completion of the various investigations before it could properly assess whether to join other parties to the action.

Among those suing the company are two Northern Ireland farmers.

Damian Conlon and his company, DC Cattle Ltd, Newry Road, Crossmaglen, Co Armagh, are seeking some €2.6 million damages after 1,512 cattle at their farm were destroyed following tests on some animals which showed unacceptably high levels of dioxins were present.

Mr Conlon claims Milltown supplied him between May and October 2008 with biscuit meal feed material which had elevated levels of dioxins and polychlorinated byphenyls (PCBs).

Mr Conlon said he understood oil used in the creation of the biscuit meal feed sold to him was the source of the contamination.

Co Tyrone farmer William Fulton, is claiming €1.9 million damages. Mr Fulton, Victoria Road, Bready, Strabane, Co Tyrone, and his company, W F Fulton Ltd, brought their claim arising from the supply of biscuit meal feed purchased from Millstream Recycling between May and November 2008.

Mr Fulton claims the biscuit meal was fed to his animals in October, November and until December 8th, 2008, when it was discovered that the meal was contaminated by dioxins to an extent exceeding the maximum limits permitted by the Feeding Stuffs Regulations (Northern Ireland) 2005.

His herd had to be destroyed, Mr Fulton claims , causing consequential losses of €1.9 million.