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 Recycling, Clohamon Mills, Bunclody, had previously secured €38.7 million damages against a Northern Ireland company and, by agreement yesterday, secured an award of €38 million against Newtown Lodge Ltd, Fairview, Dublin.
Millstream had claimed dioxins or PCBs banned in the 1970s were contained in oil purchased by it 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 December last, Mr Justice Peter Kelly ordered O’Neill Fuels Ltd, of Coalisland, Co Tyrone, to pay €38.7 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 Mr Tierney and Newtown Lodge had been settled. He asked that the case against Mr Tierney be struck out with no order. He also asked that €38 million damages order be made in favour of Millstream against Newtown Lodge, plus costs, including reserved costs.
Counsel for Mr 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.
Mr Lanigan O’Keeffe said Millstream was happy to accept the oil was supplied by O’Neill Fuels Ltd.
