Compensation claim for toxic spill
The company, that links to the toxic spill that has affected cities in Hungary and now potentially countries in Europe could see it paying out millions in compensation for the effects of the toxic spill.
MAL Hungarian Aluminium is now the centre of concern as there are fears that a second lethal spill could take place. There are claims that areas in the company’s Ajka plant are showing signs of cracks in the walls.
The spill has affected cities such as Devecser and Kolonter, which are to the west of the capital Budapest. Over 180 million gallons of the substance described as red sludge
The initial spill has led to at least four deaths and 150 injuries; three people have also been reported as missing. There have also been reports of lethal affects to the natural environment such as to fish and plants.
Speaking about the environmental effects that the spill has had, the executive secretary to the International Commission for the Protection of the Danube River (ICPDR), a Vienna-based U.N. body, believes that most of the damage has been towards local.
Local community greatly affected
He said: "It is clear that the consequences of this are greatest in the local area and that the implications on a trans-boundary level, we understand, will not be significant which doesn't mean they don't exist."
"The Hungarian authorities took a number of measures to reduce the toxicity, they added substances to neutralize the material they also constructed some underwater weirs to slow the mud and maintain it and contain it as much as possible in the Hungarian territory of the river system."
It was confirmed that the Danube River had been contaminated by the toxic mud on Thursday 7 October. The red sludge substance contains high levels of aluminium and arsenic both of which are highly alkaline and dangerous in high quantities.
A personal injury lawyer specialist, states that, “how much the company pays out will depend on their assets and the level of insurance they have.
The company is owned by three of Hungary’s richest people and it reported profits of €715,000 (£623,000) and revenues of €157 million (£137 million).
The Hungarian government have said that tens of millions could be fund the cleanup bill and for compensation payouts.
Small payments made to affected citizens
The personal injury lawyer, reveals that only hundreds of Euros have been paid out to families that have been affected by the toxic spill.
He said of MAL’s rapid decision to compensate the families through local governments is: "Pleasing but payment of just €360 to each family is an insult to those who have had to evacuate their homes and those injured".
He believes that there should be a further injection of funds which can go towards funding personal injury claims, and the Hungarian government may have to provide this funding for the victims in order to make sure that "compensation payouts [are] sooner rather than later."
The issue of liability and professional negligence are yet to be negotiated.
He concluded by saying that there are rules of strict liability in environmental cases like this. Stating that: "if you are responsible for storing toxic chemicals and they escape and cause damage, you are responsible and have to compensate those affected. End of story. The fact they've escaped is enough to prove strict liability."
Source: http://www.postchronicle.com/news/breakingnews/article_212326331.shtml
Updated on 10/28/2010