Case - France - Sherpa and Others v Bolloré SA

Sherpa and Others v Bolloré SA

Summary of facts

SOCAPALM is a palm oil production and rubber trees cultivation company in Cameroon. In 2010, French NGOs (Sherpa, CED, FOCARFE, and MISEREOR) filed a complaint against SOCIOPALM’s four holding companies, Bolloré (France), Socfin (Belgium), SOCFINAL (Luxembourg) and Intercultures (Luxembourg), at their respective National Contact Points (NCPs) for the OECD Guidelines for Multinational Enterprises. They alleged that the companies breached the OECD Guidelines by failing to prevent or address SOCAPALM’s adverse impacts on the environment, local communities, and workers like the expansion of palm operations into the territory of local communities and its detrimental effect on the availability of public services and natural resources; water and air pollution; inadequate health and safety measures; unfavorable working conditions; overcrowded housing facilities for workers; and physical abuse by Africa Security. After two years of refusing to participate, Bolloré engaged in the proceedings in 2011 and in 2013, representing Socfin and SOCAPALM, it accepted mediation. The NCP’s final statement concluded SOCAPALM breached the guidelines and in September 2013 validated the parties’ action plan to remedy the violations. This included a commitment by Bolloré to influence SOCAPALM to reduce its environmental damages, compensate local communities for loss of resources and land and improve working conditions. By November 2014, Bolloré stopped implementing the plan, saying that Socfin was not cooperating. Procedures through the NCPs were unsuccessful. After further exchanges and formal letters, the NGOs decided to initiate a contract law claim, arguing that the plan resulting from the NCP mediation is a contract that Bolloré must be made to perform

Timeline

2022 Versailles Court of Appeal

Jurisdiction
Pending
Applicable Law
French Contract Law
Legal issues
  • The defendant appealed the Nanterre Civil Court's ruling
Ruling / Outcome
  • 9 June 2022: The Court of Appeal confirmed Nanterre Civil Court’s ruling

2022 Nanterre Civil Court

Jurisdiction
Yes
Applicable Law
French Contract Law
Legal issues
  • The plaintiffs request that Bolloré be forced to enforce the action plan and to remedy the damages suffered as a result of its non-implementation.
Ruling / Outcome
  • The case is ongoing

2021 Nanterre Civil Court

Jurisdiction
Yes
Applicable Law
French Contract Law
Legal issues
  • Concerns liability of the parent company for its subsidiary and seeking injunctive relief
  • Contract law claim alleging that Bolloré’s lack of implementation of the action plan breached a legally binding contract
  • The defendant raised a procedural defense arguing the agreement is confidential and cannot be used in court
Ruling / Outcome
  • Court declared confidentiality does not apply to agreements resulting from NCP mediation as this would otherwise render them judicially unenforceable
Court case

Sherpa and Others v Bolloré SA

France
Filed: March 25, 2021
Status: Ongoing