Chevron/Buncefield

Client: Chevron
Practice areas involved: dispute resolution, energy, insurance and reinsurance
Value: claims exceed £1 billion



The explosion in December 2005 at the Buncefield Terminal owned by Chevron and Total made headlines around the world. It was the biggest explosion in Europe since the Second World War and led to claims from 4,000 individuals and businesses exceeding £1 billion.

Herbert Smith is one of five firms on Chevron’s panel of external legal advisers and our exceptional reputation for contentious work and our strength in the energy sector made us a clear choice to advise the American business.

In June 2008 Total and the joint venture company, Hertfordshire Oil Storage Limited, admitted that much of the damage could have been foreseen, exposing themselves to significant payouts. We advised Chevron on every aspect of the civil and criminal proceedings that the explosion has given rise to.

The civil proceedings ran from 1 October 2008 into December 2008 and brought together a wealth of legal talent including arguably the country’s top three commercial QCs. The Herbert Smith team was led by partners Ted Greeno, Caroline Kehoe and Howard Watson of our dispute resolution practice.

We were delighted when judgment was given in favour of Chevron in March 2009, the judge finding that Total was vicariously liable for the negligent employee at the site and that Chevron’s construction of the various contractual agreements was correct. Total has appealed in relation to the issues surrounding the contractual agreements and the appeal is expected to be heard in 2009/2010.

Howard Watson’s team continues to act in the ongoing criminal proceedings against the joint venture company and partner Martin Bakes (insurance and re-insurance) continues to advise Chevron on the insurance-related aspects of the matter.