Colour Quest Ltd & Ors v Total Downstream UK Plc & Ors (Rev 1)

Colour Quest Ltd & Ors v Total Downstream UK Plc & Ors (Rev 1)

Total was vicariously liable for the negligence of on-site staff (not HOSL), as Total exercised actual control and management over operations, employment, and safety systems at Buncefield. Economic loss claims by beneficial owners (e.g. Shell) without immediate right to possession are not recoverable. Consent does not bar claims in Rylands v Fletcher or nuisance where the escape is caused by negligence. Indemnities in the JVA and Operating Regulations do not cover a party's own negligence. Both public and private nuisance can arise from a single catastrophic escape.

Parties
Claimants: Colour Quest Limited and Others; Defendant/part 20 Claimant: Total Downstream UK PLC; Defendant/part 20 Claimant: Total UK Limited; Defendant/part 20 Defendant: Hertfordshire Oil Storage Limited (HOSL); Part 20 Third Party: Chevron Limited; Part 20 Defendant: TAV Engineering Limited; Part 20 Defendant: Motherwell; Claimants: Douglas Jessop & Others; Claimants: West London Pipeline and Storage Ltd and United Kingdom Oil Pipelines Ltd; Claimant: BP Oil UK Limited; Claimant: Shell UK Limited
Jurisdiction
England and Wales
Judgment Date
20 March 2009
Procedural Posture
Commercial Court Trial of Preliminary Issues (multi Party Tort Claims) / Judgment After Trial of Preliminary Issues
Outcome
Judgment for claimants on vicarious liability and nuisance; economic loss claims by beneficial owners (e.g. Shell) dismissed; indemnity claims by Total dismissed.
Legal Topics
Vicarious Liability, Negligence, Nuisance (private and Public), Rylands V Fletcher, Economic Loss, Indemnities, Joint Venture Liability, Consent as Defence, COMAH Regulations

Case Brief

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Parties

Colour Quest Limited and Others

Claimants

Total Downstream UK PLC

Defendant/part 20 Claimant

Total UK Limited

Defendant/part 20 Claimant

Hertfordshire Oil Storage Limited (HOSL)

Defendant/part 20 Defendant

Chevron Limited

Part 20 Third Party

TAV Engineering Limited

Part 20 Defendant

Motherwell

Part 20 Defendant

Douglas Jessop & Others

Claimants

West London Pipeline and Storage Ltd and United Kingdom Oil Pipelines Ltd

Claimants

BP Oil UK Limited

Claimant

Shell UK Limited

Claimant

Procedural Posture

Commercial Court Trial of Preliminary Issues (multi Party Tort Claims) / Judgment After Trial of Preliminary Issues

  1. 1 Who is vicariously liable for the negligence causing the Buncefield explosion: Total or HOSL?
  2. 2 Is economic loss recoverable by claimants with beneficial but not possessory interests?
  3. 3 Does consent bar claims in Rylands v Fletcher and nuisance for 'inside the fence' claimants?

Ratio Decidendi

Total was vicariously liable for the negligence of on-site staff (not HOSL), as Total exercised actual control and management over operations, employment, and safety systems at Buncefield. Economic loss claims by beneficial owners (e.g. Shell) without immediate right to possession are not recoverable. Consent does not bar claims in Rylands v Fletcher or nuisance where the escape is caused by negligence. Indemnities in the JVA and Operating Regulations do not cover a party's own negligence. Both public and private nuisance can arise from a single catastrophic escape.

Court Disposition

Judgment for claimants on vicarious liability and nuisance; economic loss claims by beneficial owners (e.g. Shell) dismissed; indemnity claims by Total dismissed.

Orders

  • Total is vicariously liable for the negligence causing the Buncefield explosion.
  • Claims in Rylands v Fletcher and nuisance succeed against Total (including for 'inside the fence' claimants).