US Dow faces no liability from new Bhopal ruling

20 July 2004 17:44  [Source: ICIS news]

HOUSTON (CNI)--Dow Chemical, which purchased Union Carbide in 2001, does not face any new liability as a result of an Indian Supreme court ruling earlier this week that found the number of victims of the Bhopal tragedy was closer to 15 000 than an earlier tally of 3 000, a company spokesman said Tuesday.

 

In December 1984, toxic gas leaked from a Union carbide plant in Bhopal, killing thousands and injuring tens of thousands. Union Carbide settled with the Indian government and residents in 1989, paying $470m (Euro379.7m) into a trust but all of those funds were not distributed due to legal challenges and bureaucratic red tape.

 

The Indian Supreme Court earlier this week ordered disbursement of the remaining $330m of the settlement funds, and acknowledged that the death toll was likely closer to 15 000 and that about 550 000 victims were eligible for compensation as a result of the leak of methyl isocyanate gas into the atmosphere.

 

John Musser, Dow spokesman at the company’s Midland, Michigan headquarters, said the company faces no financial liability as a result of the court ruling.

 

“The settlement was signed in 1989 and we purchased Union Carbide in 2001,” Musser explained. “We think this is a good outcome for the people there.”

 

A group representing victims of the leak named the Committee for Struggle for Bhopal Gas Victims, said it plans to file a plea with the Indian Supreme Court asking the government to pay more to the victims.

 

In 1991, the high court said if the tragedy was found to be broader than initially estimated, the Indian government would pay any additional compensation. India continues to pursue criminal charges against Union Carbide’s ex-chairman Warren Anderson.

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