Supreme Court decision: AbitibiBowater not responsible for environmental cleanup costs in Newfoundland and Labrador
December 7th, 2012 | Posted in Environmental News, Mill Closures & Layoffs | 5 comments »
The Supreme Court of Canada has sided with AbitibiBowater (now Resolute Forest Products) over the environmental cleanup of its operations in Newfoundland and Labrador, including the former Grand Falls-Windsor mill.
AbitibiBowater/Resolute Forest Products will not be responsible for any environmental clean-up in the the province.
AbitibiBowater (and its predecessor companies) operated in Newfoundland for over 100 years. In 2008, AbitibiBowater announced it was closing the Grand Falls-Windsor mill, the last of its operations in the province.
The province expropriated the assets of the company to secure the timber and water assets, but argued AbitibiBowater should still be responsible for the environmental cleanup costs. There are 5 sites in Newfoundland that require environmental clean-up, including the Grand Falls – Windsor mill site. 3 of the sites were expropriated by the province.
The clean-up cost is estimated to be between $50-100 million.
AbitibiBowater was under creditor protection in 2009-2010. The province wanted the Supreme Court to decide it a company’s environmental contamination responsibilities were extinguished under the Companies’ Creditors Arrangement Act like a commercial debt.
The Supreme Court ruled 7-2 against the province.
Read the Ruling:
Newfoundland and Labrador v. AbitibiBowater Inc. 2012 SCC 67
Read media coverage:
N.L. loses Abitibi case in Canada’s top court (CBC)
Canada’s top court says province can’t force insolvent company to clean up contamination (National Post)
AbitibiBowater wins Canada case on environmental cleanup costs (Reuters)
Supreme Court sides with Abitibi in environmental cleanup case (Globe and Mail)
Related Posts
- Tomorrow the Supreme Court will rule on Grand Falls-Windsor clean-up responsbility
- Old Grand Falls-Windsor mill is a hazard
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- Company interested in producing wood pellets at the old Grand Falls-Windsor mill
- Supreme Court of Canada refuses to hear Fibrek and Mercer appeal
- Supreme Court of Canada grants Fibrek's request
- Grassy Narrows First Nation has filed their Supreme Court appeal
- AbitibiBowater Changing Name to Resolute Forest Products
So they change their name and duck out of $100 million in cleanup costs. Cost that will not have to be covered by taxpayers. It’s these kind of practices that make people distrustful of forestry (and oil) companies. Clean up your mess. Take responsibility for your actions. Business is about more than just profits.
right on bro
Just shows how the conservatives protect business’s at the expense of everyone else. The citizens get to clean up Reaolutes mess which is bullshit.
Same thing happened here in TBay this summer when the old Superior site was sold to a guy out of Toronto that has been to court on fraud charges. I guess once he’s finished scrapping out the building, he will go belly up too and no one in T Bay saw this coming, again?????
This one you can blame on Danny Williams ….. he was so quick to expropriate that he never thought of the costs … just saying !!!