Archived press release

It could be you! GM directors warned over legal liability

19 July 1999

Directors of companies involved in producing and selling genetically-modified food and crops have been warned that they may face personal legal liability for any damage their products cause to human health or the environment.

The stark warning comes in letters to more than 200 company directors from Charles Secrett, Executive Director of Friends of the Earth. Companies whose directors have been written to include Monsanto, AgrEvo, Novartis, Zeneca, and Plant Breeding International.Letters have also gone to directors and chief executives of institutes involved in GM development, including the John Innes Centre.

The letters state that

“It is Friends of the Earth's considered view that in addition to [the] company,[directors] personally should be legally liable if damage is caused by the release of GMOs. In our view you should not be able to hide behind a corporate veil in this respect ... We are also advised that you would incur civil liability at common law if you have personally authorised, directed or procured the commission of a civil wrong, even though you may not be aware that the acts so authorised were actionable ... We will make this letter available to anybody who might wish to bring legal proceedings at any time in the future against you as a result of any damage they or the environment may suffer as a result of the release of GMOs by your company ... as evidence that you have been put on notice of your potential liability.”

FOE is already receiving outraged replies to its letter from GM company directors, who are clearly shaken by the prospect of liability ending up at their front door.

The law on liability for the release of GMOs is not clear. If cross-pollination occurs, and a new hybrid plant is created, for example a weed that is resistant to conventional herbicides,the extent of environmental damage is completely unpredictable, but could be enormous. One result is that insurance companies are facing serious problems in designing policies to cover companies involved in GM food and crops.

The UK Government has asked the European Commission to consider developing a liability regime to cover the release and marketing of GMOs. But at present in the UK, liability for

environmental damage is covered by the normal rules of tort law, and there have not yet been any cases to determine how these rules should apply to GMOs.

An example of a potential liability issue could be where pollen from a GM crop grown in a farm-scale trial contaminates a nearby organic farm, threatening that farm's organic certification. Who should the organic farmer sue? The GM company that designed the crop or the farmer who grew it, even if that farmer has followed all environmental advice to minimise the risk of cross-pollination? In the event of any health damage from GM food,liability might be faced by the GM company, the food manufacturer who has used GM ingredients, or the retailer who sold the food to the consumer.

FOE has drafted a Genetically Modified Food and Producer Liability Bill, introduced to the House of Commons by Alan Simpson MP (Labour, Nottingham South). The Bill would ensure that where liability is incurred by a company, directors would also be liable unless they could show that they did everything in their power to prevent the deliberate release or marketing which did the damage. In an adjournment debate on 30th June, Mr Simpson said that:

“Today's campaign is led by the Women's Institute, by Prince Charles and by the collectivity of environmental organisations around the country. They are telling [GM companies] that we intend to hold their boards of directors corporately and personally liable for every aspect of environmental damage or damage to human health that follows from the introduction of GM crops into the environment. That responsibility needs to be locked into the centre of the debate taking place in this country, which also needs to take place in this House”.

FOE Food Campaigner Pete Riley commented:

“It is quite clear that the absolutely fundamental issue of legal liability for any damage caused by GM food and crops has not been resolved. How can any responsible Government even consider releasing GMOs into the environment until this question has been answered? In the meantime, we are putting all directors of GM companies on notice. Just because the law is not yet clear, do not assume that you can avoid liability for any damage your products may cause. We will do our bit to make sure that you foot the bill. And that means not just your company. You personally. Do you really want to take that risk?”

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust