BHP Billiton Petroleum Ltd & Ors v Dalmine SpA [2002] EWHC 970 (Comm) (16 May 2002)

BHP Billiton Petroleum Ltd & Ors v Dalmine SpA [2002] EWHC 970 (Comm) (16 May 2002)

The court found that the incorporation of non-compliant pipes, as a result of Dalmine's fraudulent misrepresentations, was the cause of the pipeline failure at the six leak sites. The evidence did not establish that a pipeline constructed entirely of compliant pipes would probably have failed. The defendant's probabilistic analysis was found unreliable. Therefore, causation was established in favour of the claimants.

Citation
[2002] EWHC 970 (Comm)
Parties
Claimant: BHP Billiton Petroleum Limited (formerly BHP Petroleum Limited); Claimant: BHP Billiton Petroleum Great Britain Limited (formerly BHP Petroleum Great Britain Limited); Claimant: LASMO (ULX) Limited; Claimant: Monument Resources Limited; Claimant: Monument Exploration and Production Limited; Claimant: Monument (Liverpool Bay) Petroleum Limited; Claimant: Centrica Resources Limited; Defendant: Dalmine SpA
Jurisdiction
England and Wales
Judgment Date
16 May 2002
Procedural Posture
Commercial Court Claim (tort and Deceit) / Judgment on Preliminary Issue of Causation in Deceit
Outcome
Judgment for the claimants on the preliminary issue of causation in deceit; damages to be assessed.
Legal Topics
Causation, Reliance, Fraudulent Misrepresentation, Negligence, Pipeline Failure, Expert Evidence
Commercial Law Tort Law Fraud/deceit Product Liability Causation Reliance Fraudulent Misrepresentation Negligence +2 more

Case Brief

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Parties

BHP Billiton Petroleum Limited (formerly BHP Petroleum Limited)

Claimant

BHP Billiton Petroleum Great Britain Limited (formerly BHP Petroleum Great Britain Limited)

Claimant

LASMO (ULX) Limited

Claimant

Monument Resources Limited

Claimant

Monument Exploration and Production Limited

Claimant

Monument (Liverpool Bay) Petroleum Limited

Claimant

Centrica Resources Limited

Claimant

Dalmine SpA

Defendant

Procedural Posture

Commercial Court Claim (tort and Deceit) / Judgment on Preliminary Issue of Causation in Deceit

Legal Issues

  1. 1 Whether the incorporation of non-compliant pipes caused the pipeline to fail or whether it would have failed anyway even if only compliant pipes had been used
  2. 2 Whether the claimants relied on Dalmine's fraudulent misrepresentations
  3. 3 Whether the losses claimed were caused by Dalmine's fraud

Ratio Decidendi

The court found that the incorporation of non-compliant pipes, as a result of Dalmine's fraudulent misrepresentations, was the cause of the pipeline failure at the six leak sites. The evidence did not establish that a pipeline constructed entirely of compliant pipes would probably have failed. The defendant's probabilistic analysis was found unreliable. Therefore, causation was established in favour of the claimants.

Court Disposition

Judgment for the claimants on the preliminary issue of causation in deceit; damages to be assessed.

Orders

  • The claimants are entitled to judgment on liability for deceit, with damages to be assessed.
  • The claimants need not pursue their action in negligence.