ClientEarth v Shell Plc & Ors (Re Prima Facie Case) [2023] EWHC 1137 (Ch) (12 May 2023)

ClientEarth v Shell Plc & Ors (Re Prima Facie Case) [2023] EWHC 1137 (Ch) (12 May 2023)

ClientEarth failed to establish a prima facie case that Shell's directors acted outside the range of reasonable responses in managing climate risk or that the relief sought was appropriate. The evidence did not show that no reasonable board could have adopted the directors' approach, and the relief sought was too imprecise for enforcement. The application was refused under s.263(2)(a) CA 2006.

Citation
[2023] EWHC 1137 (Ch)
Parties
Claimant: ClientEarth; Defendant: Shell Plc; Defendant: Sir Andrew Stewart Mackenzie; Defendant: Wael Sawan; Defendant: Euleen Yiu Kiang Goh; Defendant: Sinead Gorman; Defendant: Arie Dirk (Dick) Boer; Defendant: Neil Andrew Patrick Carson OBE; Defendant: Ann Frances Godbehere; Defendant: Catherine Jeanne Hughes; Defendant: Jane Holl Lute; Defendant: Martina Therese Sophie Hund-Mejean; Defendant: Abraham (Bram) Schot
Jurisdiction
England and Wales
Judgment Date
12 May 2023
Procedural Posture
Derivative Claim / Application for Permission to Continue Claim (prima Facie Case Assessment)
Outcome
Permission to continue the derivative claim refused.
Legal Topics
Directors' Duties, Derivative Actions, Climate Risk Management, Shareholder Rights, Corporate Governance
Company Law Environmental Law Directors' Duties Derivative Actions Climate Risk Management Shareholder Rights Corporate Governance

Case Brief

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Parties

ClientEarth

Claimant

Shell Plc

Defendant

Sir Andrew Stewart Mackenzie

Defendant

Wael Sawan

Defendant

Euleen Yiu Kiang Goh

Defendant

Sinead Gorman

Defendant

Arie Dirk (Dick) Boer

Defendant

Neil Andrew Patrick Carson OBE

Defendant

Ann Frances Godbehere

Defendant

Catherine Jeanne Hughes

Defendant

Jane Holl Lute

Defendant

Martina Therese Sophie Hund-Mejean

Defendant

Abraham (Bram) Schot

Defendant

Procedural Posture

Derivative Claim / Application for Permission to Continue Claim (prima Facie Case Assessment)

Legal Issues

  1. 1 Whether ClientEarth established a prima facie case for permission to continue a derivative claim against Shell's directors for alleged breaches of duty relating to climate risk management and compliance with a Dutch court order.

Ratio Decidendi

ClientEarth failed to establish a prima facie case that Shell's directors acted outside the range of reasonable responses in managing climate risk or that the relief sought was appropriate. The evidence did not show that no reasonable board could have adopted the directors' approach, and the relief sought was too imprecise for enforcement. The application was refused under s.263(2)(a) CA 2006.

Court Disposition

Permission to continue the derivative claim refused.

Orders

  • Application dismissed under s.261(2)(a) Companies Act 2006.