Case - France - Sherpa and Les Amis de la Terre France v Perenco SA

Sherpa and Les Amis de la Terre France v Perenco SA

Summary of facts

The Perenco group is a large family owned French oil and gas group. Through several companies, it is the sole operator in the Democratic Republic of Congo (DRC), which is regularly accused of causing severe environmental damage. Reports show crude oil spills, discharge of toxic products and gas flaring in unsafe conditions, as well as old and damaged pipelines. In 2019, two French NGOs initiated legal actions against Perenco SA before French courts to clarify Perenco SA’s relationship, influence and control over the activities of the oil exploiting companies (Perenco REP, MIOC, LIRED, Soreplico). The documents would then form part of a future legal case based on the environmental damages caused by Perenco SA in DRC. Following this initial “pre-trial” action, the NGOs took legal action against Perenco SA before the Paris Court. They ast that the company be ordered to remedy the environmental damage caused in the DRC. They also ask the court to order the company to take measures in order to end environmental harms and prevent any future damages to the environment.

Timeline

2022 French Supreme Court or ‘cour de cassation’

Jurisdiction

Yes

Applicable Law

Article 145 French Code of Civil Procedure; Regulation (EC) No 864/2007 of the European Parliament and of the Council of 11 July 2007 on the law applicable to non-contractual obligations (Rome II)

Legal issues

Plaintiffs appealed the Court of Appeal’s dismissal to the French Supreme Court
Plaintiffs argue that the first instance’s judge exceeded its role and that misconstrued the relevant applicable law by finding that the claimants did not have legal standing

Ruling / Outcome

The Court of cassation judged that the possibility for the CSOs to file the case was to be decided according to French law, and not foreign law as the company had argued.
Consequently, it overruled the Court of Appeal’s decision

2022 Paris Civil Court

Jurisdiction

Applicable Law

French civil liability law and provisions on environmental loss (Article 1247 French Civil code) ; Regulation (EC) No 864/2007 of the European Parliament and of the Council of 11 July 2007 on the law applicable to non-contractual obligations (Rome II)

Legal issues

Plaintiffs are seeking to hold the company liable for the environmental damages caused in the DRC.

Ruling / Outcome

The case is ongoing.

2020 Paris Court of Appeal

Jurisdiction

Yes

Applicable Law

Article 145 French Code of Civil Procedure

Legal issues

Plaintiffs appealed the first instance Court’s dismissal of their request

Ruling / Outcome

Court of Appeal dismissed the request and upheld the first instance’s ruling
Ruled that DRC law would later be applicable on the merits and that the NGOs did not have standing to sue given the specific nature of the contemplated legal claim

2019 Paris Civil Court

Jurisdiction

Yes

Applicable Law

Article 145 French Code of Civil Procedure (adversarial procedure)

Legal issues

Perenco opposed the execution of August 2019 Paris civil Court’s judicial decision and denied the court’s bailiff access to its premises
In September 2019, Plaintiffs filed a new expedited request for the documents, and asked that compliance with order be accompanied by a financial penalty

Ruling / Outcome

The NGO’s request was dismissed by the Court on the basis that the future lawsuit for which the documents were requested was “manifestly doomed to fail” as the plaintiffs would not have legal standing

2019 Paris Civil Court

Jurisdiction

Yes

Applicable Law

Article 145 French Code of Civil Procedure

Legal issues

Ex parte proceedings
Concerns the liability of the home company for the actions f of another company of its group
Plaintiffs request access to internal documents from the company in France, containing possible evidence confirming its role in the management of the oil operations in the DRC, as well as other documents related to its structure, and environmental policies

Ruling / Outcome