16-Jun-2010

Nuclear Liability: Do As We Say, Not As We Do

Siddarth Varadarajan writes in The Hindu:
The irony is that even as it has pushed the regime of legal channelling on the rest of the world, the U.S. system of economic channelling of liability allows tort claims as well as an unrestricted right of recourse for the operator. That is how, for example, Metropolitan Edison, the operator of the Three Mile Island reactor, sued its supplier, Babcock & Wilcox, after the 1979 accident.
What is it that makes the U.S. so hypocritical?

He also considers some alternatives that India could consider in terms of making a liability law:
In a recent article, Evelyne Ameye has confronted the flawed logic of channelling, making a safety-cum-engineering argument in favour of suppliers remaining liable for accidents their products may cause. (“Channelling of nuclear third party liability towards the operator,” European Energy and Environmental Law Review, 2010). This can be done in two ways. Liability for an accident can still be channelled on to the operator but his right of recourse in the event of supplier negligence is left unrestricted. The Russian Federal Act on Atomic Energy, for example, does not impose a limit upon the operator's right of recourse. (Alexander Matveev, “The Russian approach to nuclear liability,” International Journal of Nuclear Law, 2006). South Korea's liability legislation also allows operators to recover damages from suppliers in the event of negligence. A second way would be to allow victims to sue suppliers for fault-liability under tort law so as to win damages over and above what the operator pays through strict liability. Thus Germany, a party to the Vienna Convention on nuclear liability, entered a reservation stressing its right, under national law, to hold persons other than the operator liable for nuclear damage. Besides, several conventions on environmental damage — such as the 2003 Kiev Protocol on industrial accidents in transboundary waters — now explicitly provide for strict as well as fault-liability to run side by side.

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