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The Courts as Environmental Champions: The Norwegian Hempel Cases

10 Pages Posted: 7 Dec 2016 Last revised: 2 May 2017

Beate Sjåfjell

University of Oslo, Faculty of Law, Department of Private Law

Date Written: December 5, 2016

Abstract

This article presents the Hempel cases from the Norwegian courts, where a Danish parent company (Hempel AS) first was ordered to pay the costs for investigating the extent of pollution in ground previously owned by its Norwegian subsidiary, and then to pay the costs for cleaning up the pollution. The article argues that these decisions, although formally based on provisions in the Norwegian Pollution Control Act, de facto are innovative examples of case-law based liability, where society’s interest in environmental protection is prioritised over society’s and shareholders’ interest in protecting shareholders’ limited liability. Enhanced due diligence may be the result.

Suggested Citation

Sjåfjell, Beate, The Courts as Environmental Champions: The Norwegian Hempel Cases (December 5, 2016). European Company Law vol. 13, no. 5, 2016; University of Oslo Faculty of Law Research Paper No. 2016-28; Nordic & European Company Law Working Paper No. 16-21. Available at SSRN: https://ssrn.com/abstract=2880514

Beate Sjåfjell (Contact Author)

University of Oslo, Faculty of Law, Department of Private Law ( email )

PO Box 6706 St Olavs Plass
Oslo, N-0130
Norway

HOME PAGE: http://www.jus.uio.no/ifp/english/people/aca/beatesj/index.html

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