Environmental Clean Up Costs - Who Pays? (Revisited)

In March 2011, the Irish High Court temporarily reversed a 10 year practice of imposing personal liability on company officers to pay for environmental clean up of the company's waste. Since 2002, the Irish High Court has made what are called "fall-back orders", imposing personal liability on those who "controlled" and benefited from an activity to pay for environmental clean-up costs. These orders were designed as a "fall-back" if the limited company did not have adequate funds to pay.

This practice was reversed in the decision in Environmental Protection Agency v Neiphin Trading Ltd & Others (and was reported on by MOP in our update on 16 June 2011). This decision had added significance given the increasing number of insolvencies in Ireland. As a result of this March decision it appeared that directors might no longer be held personally liable to pay for clean up.