Overview
KENNA has secured a landmark victory before the Federal High Court in Uyo, successfully defending Seplat Energy Producing Nigeria Unlimited (SEPNU) in a high-value representative suit seeking NGN54,044,516,760.00 in damages over an alleged oil spill. The suit, filed by representatives of the Barracks, Nditia, and Okposo 2 Communities, sought to hold SEPNU liable for an alleged spill from its facility dating back to 2014. A central issue in the proceedings was whether the claim was statute-barred, with the Plaintiffs arguing that the environmental damage constituted a “continuing injury” that extended the limitation period. KENNA rose to the occasion, deploying a sophisticated legal strategy that resulted in a decisive dismissal of the suit.
In a critical submission, Ms Abasiemediong Etuk, MCArb, Senior Associate at KENNA, drew a vital distinction between continuing injury and the continuing effect of a legal injury. Ms. Etuk successfully argued that a continuing injury requires a repeat or recurrence of the wrongful act itself, whereas the lingering aftermath of a single past event—no matter how persistent—constitutes only the “continuing effect” of a legal injury, which does not reset the limitation period. She maintained that because the alleged spill was a completed act in 2014, the cause of action was fixed to that date. Adopting KENNA’s arguments in its entirety, the Court held that the alleged oil spill was not a continuous act but a completed act with residual effects.
Consequently, the exception of continuing injury did not apply, and the suit was dismissed as statute-barred. This ruling represents a significant legal precedent, reinforcing the principle that litigation must have an end date to ensure certainty and fairness. By settling the distinction between continuing injury and the continuing effect of an injury, the decision provides crucial clarity for future oil spill litigation. The KENNA team was led by Ituah Imhanze FCArb and Ms. Abasiemediong Etuk, MCArb
