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Animal feed maker gets €38.7m in dioxin scare case

A LONG-running legal action arising from the 2008 animal feed contamination scare ended at the Commercial Court yesterday with another multimillion-euro damages award.

Millstream Recycling Ltd, Clohamon Mills, Bunclody, in Wexford had previously secured €38.7m damages against a Northern Ireland company and, by agreement yesterday, secured a further award on consent of €38m against Newtown Lodge Ltd, Fairview, Dublin.

The contamination led to the recall of all Irish pork products in late 2008 at a cost of more than €180m.

Millstream had claimed dioxins banned in the 1970s were contained in oil purchased by it for use in animal feed manufacturing.

It sued Gerard Tierney of Newtown Park Avenue, Blackrock, and his company, Newtown Lodge Ltd, Fairview, Dublin, alleging they supplied it with defective oil that contaminated its pig feed with dioxins.

Mr Tierney and Newtown had denied the oil supplied by them to Millstream was defective.


Alternatively, they pleaded, if the oil was contaminated, it was not their fault as, they alleged, it was supplied to them by O'Neill Fuels Ltd, Annaghmore Hill, Coalisland, Co Tyrone, which was joined as a third party to the case.

O'Neill's had denied any fuel provided by it contained dioxins or PCBs.

In December last, Mr Justice Peter Kelly ordered O'Neill's to pay €38.7m damages to Millstream arising from the contamination.

He did so after granting Millstream's application to dismiss O'Neill's defence to the case due to O'Neills' failure to discover documents in the proceedings by Millstream.

Millstream had complained O'Neill's actions had deprived Millstream's creditors of a substantial indemnity (via insurance) as O'Neills' failure to instruct its solicitors led its insurance company to notify O'Neill's it would repudiate the insurance policy.

Yesterday, Stephen Lanigan O'Keeffe SC, for Millstream Recycling, said his client's proceedings against Mr Tierney and Newtown Lodge had been settled.

Irish Independent