February 2, 2011
Millstream firm gets another US$53.56 million for pork contamination
Millstream Recycling had previously secured EUR38.7 million (US$53.56 million) damages against a Northern Ireland company and by a new agreement, it also secured an award of EUR38 million (US$53.56 million) against Newtown Lodge Ltd.
A legal action by a Co Wexford company arising from the animal feed contamination which led to the recall of all Irish pork products in 2008 has ended at the Commercial Court with another damages award to the company.
Millstream had claimed dioxins or PCBs banned in the 1970s were contained in the oil purchased for use in animal feed manufacturing. It sued Gerard Tierney, Newtownpark Avenue, Blackrock, and his company, Newtown Lodge Ltd, Fairview, Dublin, alleging it supplied it with defective oil which contaminated its pig feed with dioxins.
In last December, Justice Peter Kelly ordered O''Neill Fuels Ltd, of Coalisland, Co Tyrone, to pay EUR38.7 million (US$53.56 million) damages to Millstream arising from the contamination.
Millstream had complained that the actions of O''Neill''s had deprived Millstream''s creditors of a substantial indemnity (via insurance) as its failure to instruct its solicitors on discovery led its insurance company to notify O''Neill''s that it would repudiate the insurance policy. The court also heard O''Neill''s had ceased trading and may have limited assets.
Stephen Lanigan O''Keeffe SC, for Millstream, yesterday said his client''s proceedings against Tierney and Newtown Lodge had been settled. He asked that the case against Tierney be struck out with no order. He also asked that EUR38 million (US$53.56 million) damages order be made in favour of Millstreamagainst Newtown Lodge, plus costs, including reserved costs.
Counsel for Tierney and Newtown Lodge said it was accepted by Millstream the oil did not originate with his clients and was not processed by them in any way. There were "commercial realities" involving his client''s consent to judgment against it.