A District Court judge in New York sided with Union Carbide Company (UCC) and its erstwhile CEO Warren Anderson in denying that they faced any direct liability towards the victims of the 1984 Bhopal gas tragedy.
The ruling stunned many of those pressing for compensation for the devastating injury and thousands of deaths resulting from the leakage of poisonous methyl isocyanate and other toxic pollutants into the soil and water surrounding the UCC’s plant in Bhopal.
In particular, plaintiffs Janki Bai Sahu and others alleged that “toxic substances seeped into a ground aquifer, polluting the soil and drinking water supply in residential communities surrounding the former Bhopal Plant site”.
In dismissing the case, Judge John Keenan argued that “there can be no individual liability for defendant Anderson,” because he did not personally approve the location of the Bhopal plant of Union Carbide India Limited (UCIL). Instead, the ruling hinted that it was the Government of Madhya Pradesh that was responsible for allotting the land for the plant.
Similarly, Judge Keenan declined to apply a corporate veil-piercing approach linking Indian and New York state law when he said, “There is no need to pierce the corporate veil to prevent fraud or injustice because, even if there were evidence that UCC dominated UCIL, there is no allegation or evidence that UCC did so to commit a fraud or wrong that harmed the plaintiffs.”
In arguing this, the Court essentially voiced its support for the separation of corporate identity between the UCC and UCIL, in the process clearing the UCC of what is known as “Alter Ego liability” under local laws in the process.
Keywords: Bhopal Gas tragedy, Union Carbide
Indian life is cheaper than american life, and american courts give less compensation to indians. Our courts also discriminate and the Indian court allowed UCC to wash its hands. This doesn't mean we should stay as silent spectators, allowing Americans to get away with one of the worst industrial accidents in human history.
US extracted billions from British gas for an accident in the gulf of mexico, and US president was directly involved in pressurising the multinational. Indian politicians unfortunately try to make the best out of a tragedy for themselves, and one can't be totally sure, in the light of corrupt dealings at the time that the process was straight forward.
"A District Court judge in New York sided with Union Carbide Company (UCC) and its erstwhile CEO Warren Anderson....." Sided!!! Really!!! Do courts take sides? Isn't it the stupid way this case has been handled, the real reason for this failure to hold the concerned people liable? So the Hindu wants the District court to hold UCC liable for any faults that UCIL (the Indian co.) might have committed. On what basis should it do that?
When our own govt's response to the disaster was to whisk Mr Anderson
out of the country under (if I remember correctly) police protection
and accept a pittance as compensation or whatever, how can you expect
justice from a foreign court more than a quarter of a century after
the disaster? Its one thing to keep a man under police protection to
save him from being thrashed by a mob, its another to provide him a
govt plane to leave the country. 28 years have passed. The accused has
grown old. Union Carbide paid a $470 million settlement to the Indian
govt that terminated any liabilities it had, a decision of our own
Supreme Court. It also funded in entirety the construction of a
hospital for treatment of the victims. All of these are powerful
mitigating factors. Our elected representatives have failed to
organize a clean-up of the affected areas in 28 years. In view of this
extraordinary performance of our esteemed govt, the US verdict isn't
surprising at all!
In the light of indifference by the US govt, and the callous US
judgement (looking after only US self-interest), it seems only fair
that Indians, PARTICULARLY THE MEDIA assisted by experts must
scrutinise the environmental impact of EVERY AMERICAN COMPANY
operating in India, and the citizens must insist upon proper
safeguards, and that INDIAN LAWS MUST BE CHANGED to make them US
STYLE, so that US and other foreign (and domestic) global corporations
do not treat Indian workers as disposable garbage.
It is a matter of shame that the Indian govt has failed to take care
of its own citizens. But then what do you expect from dynastic
politicians interested only in getting rich by plundering the nation,
ie everyone in the country, and just focusing on perpetuating their
rule over Indians for ever and ever, legally or illegally? It is a
matter of shame highly educated Indians have sold their souls for
their own greed and assist these families/parties. Such is democracy &
rule of law in India!!
As noted by a reader in this column above, with the present case as the example, one can easily think of the fate of liability clause(s) that would perhaps be agreed to, in principle, with the Indian Government for enactment in cases of nuclear accidents vis a vis the multibillion dollars nuclear deals being struck with the Western companies by India, while implementing.
Due to the forceful demands from President Barack Obama, BP Plc agreed
on 16th June,2010 to set up a $20 billion fund for damage claims from
its huge Gulf of Mexico oil spill by suspending dividend payments to its
shareholders. This deal gave Obama his most tangible success to the
crisis lasting two months. It also relieved U.S. pressure on BP, whose
share price has withered amid uncertainty over the spill's cost to the
British energy giant.
It will be a redundant question -whether any one from India could see the CEO- Andrew Levis there afterwards? Because the answer is known
even to a child amongst the victims! But who cares and worries about
it, in India or U.S, top democracies in the world.
We know how the U.S regime was disheveled due to a similar situation
couple of years back when due to the Oil spill in the Gulf of Mexico
lead to a series of issues, political maneuverings and threat of
environmental catastrophe etc. It was a different story that U.S
contemplated to summon even the CEO of British Petroleum before an
enquiry commission. BP Plc Chairman Carl Henric Syanberg was summoned
to Washington for a meeting with President Barack Obama while there
was pressure on the company to settle damage claims.
The CEO Forum with 12 selected CEOs from U.S and India co-chaired by
David M. Cote, CEO of Honeywell , U.S.A and Ratan Tata, Chairman,Tata
Group, India at each side had to initiate for a mutual stand and
influence both Timothy Geithner, U.S Treasury Secretary and Pranab
Mukherjee, Finance Minister of India for arriving at a consensus in
their bilateral meetings.Pranab Mukherjee who was a member of GoM had
attended the said U.S-Indo CEO Forum summit in U.S held at Washington
on June 22, 2010. Before we think whether the Minister will have any
interface with Andrew Levis, CEO of Dow Chemicals, news are being
flashed in TV channels stating that the CEO is skipping the summit due
to previous commitments. Thus India lost a chance to informally
prevail on the MNC not to deviate from its commitments at Bhopal.
As advised by the Panel, GoI had filed a curative petition in the Supreme Court against the 1996 Supreme Court judgment which diluted charges that undermined punishment to offenders. The critical point is to secure a rigorous sentence towards the guilty and all process involved for getting this done will be a challenge to the law of the land and the judicial system while Section 304 of IPC can be easily distorted into 304 A, leading to lessening the gravity of the crime.
At this juncture while President Barack Obama had landed India with
250 C.E.Os of MNCs to control Indian market, I would like to mention
on the interesting incidence of CEO Form held in Washington in
June,2010 wherein CEO of Dow Chemical deliberately avoided to attend
the said Meet in the eleventh hour.
The burying of the toxic waste in Caverns will be as challenging as
the collection and stuffing and the recommendation for a global tender
will be pertinent but again it should not lead to another disaster if
not done fittingly. The government should not spare any endeavor to
pursue the case against the Michigan based Dow Chemicals in the
Jabalpur High Court for not complying with the condition of clean-up
operation and successfully recover cost.
The panel recommendation to the takeover of BMHRC (Bhopal Memorial
Hospital & Research Centre) jointly by Dept. of Biotechnology and the
TMH (Tata Memorial Hospital, exclusively handling Cancer Patients) is
fine. If the said BMHRC was originally established after the disaster
with the direct or indirect support of UCC as agreed to do with the
sales proceeds of the factory, then it is to be complemented for the
same. Further Bhopal is getting a new Centre of the ICMR (Indian
Council for Medical Research).
Of course, initially MEA did start to catch up with his concern and
plan for the extradition of Warren Anderson. Instead of wasting the
valuable time and money for interaction with U.S regime, India should
gracefully ignore the octogenarian executive who is officially still
on the loose, and look forward with a concerted vision to stop
reoccurrence of Bhopal type of industrial disasters.
The U.S based parent Company UCC was very keen on keeping aloof from
the Indian Subsidiary. It had agreed for a reasonably modest
compensation of US$ 470 million as per the deal in 1989 on the
condition that it would construct a hospital upon the sales proceeds
while disposing of Indian operations in 1992. I have no idea whether
the hospital is built or not even after it's takes over by DOW
CHEMICALS in the year 2001 from the Indian subsidiary.
The interpretation of Law had happened at the Court when the case
booked by CBI under Sec.304 of IPC finally distorted into Sec.304A,
thus relaxing the gravity of offences giving only two years'
imprisonment virtually extinguishing the criminal offences. But the
question unanswered is that why the judiciary wanted to ignore Warren
Anderson, then Chairman of UCC (Union Carbide Corporation) of U.S who
was apparently at large after leaving from India? When he came down to
Bhopal after the tragedy of gas leak, though he was arrested , he was
let off and allowed to leave India on the condition that he will be
available as and when required.
On 07 June,2010 the Chief Judicial Magistrate in the court at Bhopal
convicted the former Chairman of Union Carbide of India, Keshub
Mahindra and other six accused in the Gas tragedy case but could award
them only a paltry punishment. ' maximum of two years' imprisonment.
The tragedy had happened on the night of 02 - 03 December in 1984 and
it is ironical that it took around 26 years to convict the accused.
Warren Anderson, the Chairman of UC Group in U.S was also named as
accused. Despite this he was absconding throughout the trail period.
Interestingly he was totally out of picture while the court verdict
just ignored him and did not mention anything about him!
The Bhopal disaster had killed thousands instantly as well as slowly
during the past two and half decades due to the chronic illnesses.
More than 500,000 people were affected by gas-related diseases. The
cry of villagers to the Michigan-based Dow Chemical, the company that
bought UCC to clean up the soil and underground water at the factory
site and the surrounding shanties, which were contaminated with
carcinogenic chemicals such as benzene and mercury, had fallen into
deaf ears. Many unfortunate families in the surrounding villages
continue to suffer from chronic illnesses such as poor eyesight and
respiratory and gynecological problems. What is the remedy for their
plight? GOI must come out with a white paper on this episode of the
tragedy and its course of action to support them.
Why Indian media does not cover the culprits like Mahindra and 7-8 other industrialists who are responsible for this???
Why are not the UCIL officials convicted by the Bhopal court not in jail?
Ridiculous Decision of US Judiciary, >1.A thing which simply visible is denied by complexity of arguments & erroneous judgement delivered.That brings in the point how did the judge arrived at this decision that company was sold to Dow Chemicals & present location in India is now in possession of another Company Eveready which is conducting a business of FMCG The compensation of over 450Million US$ demanded for sufferings of people who survived & 22000 who died as result of Pollution caused by the company (Union Carbide) has been denied after 28 years 1st of all it is not justice that is delayed for so many years It is no justice if that does not appear to do justice, doing paper work is not enough Any Company works under the instructions & in the knowledge of its CEO & Owner,but it may be they unaware for a while not for more time and must take decision to rectify as soon it is detected, 2. The case here & many other places is that these same responsible people try use loop holes to do.
american court's verdict not applicable in india,when headly was not given to india for interrogation why shall we accept such verdict for such henious crime against humanity.americans should know they dealing with india, it is not iraq, we are the only well wishers of americans in this region, an such decisions by courts is mockery with indian lives.justice is bargained in american courts as i had heard from my maternal uncle in law who practicsed there, better they hand over anderson to india and headley as well.
This is the real colour of MNCs. This is the real colour of Globalization, where a few are making profit at the expense of the vast majority who do not have the basic needs in life. There is no question of Justice. There is no question of Environment. By hook or by crook they make profit.Corruption is part and parcel of these MNCs. This bis the kind of Development both UPA and NDA wants.The creation of 40 nuclear by 2032 will be the next Bhopal Gas Tragedy. There is no morality. There is no ethics. Enough is enough.We need a `second Dandi March to stop second Globalization. The life of the planet and the dependent health of the whole humanity should not be sacrificed by the greed of a few.
Outrageous!
This is just another racist ruling!
Warren Anderson should have never left India.
If Americans allow this judgement to stand, it will only fuel the
claim that rich Americans do not care about what damage they inflict
on the local poor communities where they operate. By all accounts, the
only sin the people of Bhopal seem to have committed was to look up to
the rich Americans to give them a chance to earn a living by working
in their factories. This was no greedy act - this is what we all do!
No bargain was ever struck with them to sacrifice their lives for the
privilege of working for a US owned company.
One hopes the American people and their Govt will STOP ANY FURTHER
FEET DRAGGING, and live up to their humanitarian and moral
responsibilities, not hide behind weasel legalese, and ACT BEFORE THE
FEW REMAINING VICTIMS ARE DEAD - and deliver the help directly to the
victims - without middlemen.
If there was any case where magnanimity was called for - this is it.
In the name of humanity, Americans, don't let the unfortunate victims
down!!!
A body blow for all of us Indians from the arrogant and impudent americans who claim us as their vassals.
An eye opener for all our sycophantic politicians who cozy up to american firms who buy them off.
A telling reminder that this judgement is symptomatic of the american world view : we can kill and pollute in any corner of the world.
A wake up call for all our smart kids who head off to the USA as a kind of finishing school.
The tragedy is that our servile government never lent a hand to contest this case. What use is our worthless dollar reserves when we cannot win the self respect, dignity and rights for our dead and dying in Bhopal. An abysmal failure of our government, our diplomatic servics and our law system to protect the rights of Indians from corporate predators.
What sort of a justice is this. Our government will need to consult their
legal pundits and ensure that an appeal is filed timely top the higher
court in the US. It is funny that while the management and corporate
social responsibility pundits in the west in seminar after seminar point
out that UCC was not only responsible but also accountable for the gas
tragedy, these courts are holding otherwsise. Let not government be
slack in pursuing further higher legal remedies in the higher court in
the US.
This decision has implications for nuclear liability legislations being proposed in India. They may have to be tightened to reduce loopholes for the nuclear industry to evade liability.
Absolving of UCC from its liability for environment is a lesson to the Indian Government who is always anxious to allow the foreign companies to do what ever business they want to do without bother ing to the consequences. If the p.c. is good everything is good. On the other part verdict of the US court is also not judiceous in this era of globalisation. because here every body is trying to business in another country in partnership form of in other form to earn profit. If they only be alowed to take the sweet leaving behind them the salt, it will create a lot problem for those have not paupers specilly in a country like us that is a country of daridranarayan.
You got to admire the US court system. An old lady can sue McDonalds for serving very
hot coffee and win a multi million dollar case and Exxon Valdez deserves 5 billion dollars to
cleanup the shore line and get rid of oil patches from the bodies of each and very bird and
fish.
And the Indian court system is even worse it takes a life time to settle any case. Right or
wrong you get to see the judgement in your life time in US at least.
I would like to see what Manmohan Singh and others in the ruling
coalition have to say about this. Nothing different from their usual
callousness towards organised corporate crime I'd expect...still,
maybe the 2014 elections are too close?
This kind of legal interpretation would simply mean that any regional
chapter of a business could destroy or pollute a population and a
geographical area and then simply wrap and leave. And nobody would be
liable because the parent company is not liable. I would like to know
how the profits and assets were distributed between the Indian arm of
UCC and the parent company. Would we ever regulate foreign businesses?
And would this be the judicial attitude towards a similar case in the
USA? I bet American citizens would raise a whole lot more hell than
Indians are doing. At least a majority of Indians are not bothered -
didn't happen in their backyard, right! And what is the main
opposition - the BJP - doing?? This is not a meaty enough issue maybe?
I don't even know why the plaintiffs sued. It was obvious that Union Carbide and Dow are no longer responsible after the Indian government accepted $470 million in 1984 as "full and final settlement of all claims" relating to the accident.
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