Plaintiff(s): Nine Victims of the Beirut Port Explosion
Defendant(s): TGS ASA and TGS-NOPEC Geophysical
Court: District Court of Harris County (Texas, United States)
In November 2013, the ship Rhosus docked at the Beirut Port carrying 2,750 metric tons of military grade ammonium nitrate, which were purportedly bound for Mozambique.
Based on the information publicly available, the vessel’s stop in Beirut occurred because Spectrum Geo Ltd (Spectrum), a UK-based geophysical services company and regular contractor with the Lebanese authorities, had chartered the Rhosus to transport an additional 160 tons of seismic equipment to Jordan through a subcontracted Jordanian company, Geophysical Services Center (GSC).
According to the ship’s captain, he and his crew were ordered to load the machinery onto the vessel’s deck, despite the fact that the extra 160-ton load was beyond the ship’s capacity. As a result of the additional weight, the ship’s hatches began to buckle and the machinery could not be onloaded. In any case, the ship did not have the right equipment and ramps to onload such heavy machinery and it was already at full capacity. Rhosus was also deemed unseaworthy and had outstanding debts, causing its impoundment by Beirut’s Enforcement Department. The military grade ammonium nitrate was subsequently offloaded and improperly stored at the Beirut Port, where it remained for years until it exploded on August 4, 2020, killing at least 200 people, injuring more than 6,000, and causing extensive property damage across the city.
Since 2019, the American-Norwegian geophysical group TGS—which consists of TGS ASA and TGS NOPEC Geophysical Co—has owned Spectrum.
Summary of the Case
Nearly two years after the Beirut Port explosion, on July 11, 2022, lawyers on behalf of nine victims of the blast—all US citizens or green card holders—filed a civil lawsuit in the United States against TGS. TGS trades on the Oslo stock exchange with operational headquarters in Houston, Texas; accordingly, the case was brought before the District Court of Harris County, Texas. The Swiss foundation Accountability Now supported the victims in filing the case, with the law firm Ford O’Brien Landy LLP serving as lead counsel.
The lawsuit claims that since TGS acquired Spectrum in 2019, it became responsible for its liabilities. Therefore, TGS is responsible for Spectrum’s chartering of the Rhosus as part of an overarching contract with the Lebanese Ministry of Energy mired with opacity and corruption, as well as for its consequential failure to conduct proper due diligence and supervision when subcontracting GSC and other contractors and agents.
The victims, who are seeking $250 million in damages for the loss of life and property, presented several arguments to establish the liability of Spectrum and, consequently, TGS, including:
- The contract between Spectrum and the Ministry of Energy was kept secret and silent regarding its monetary terms, and therefore, it allegedly served as a façade to facilitate corrupt practices.
- Spectrum was aware of the vessel’s unseaworthiness and its incapacity to carry seismic machinery. The vessel was already overloaded with 2,750 tons of military grade ammonium nitrate when it was tasked with picking up additional heavy equipment from Beirut. The ship was inadequately equipped, missing ramps to load and offload such machinery, and experts noted that it had a history of poor maintenance and regulatory noncompliance.
- Spectrum failed to comply with Lebanese law, which requires the approval of the Ministry of Defense and the Council of Ministers, followed by the Ministry of Economy, for the importation of ammonium nitrate containing more than 33.5 percent nitrogen.
- Spectrum subcontracted GSC to run operations in Lebanon without conducting proper due diligence before selecting the company and without supervising its activities.
On July 13, 2022, TGS denied the allegations raised in the lawsuit, stating that its own investigation after the blast had cleared Spectrum of any responsibility. The company also affirmed its intention to defend the matter in court.
TGS motioned the court in Houston to dismiss the case, claiming that British courts, where Spectrum is registered, and Lebanese courts, where the incident occurred, were the appropriate jurisdictions. Nevertheless, the court rejected TGS’s motion in August 2023, confirming its jurisdiction over the case.
Procedural Status
The case is currently in the discovery phase, where both parties are required to disclose all documents, information, and evidence relevant to the case. Witnesses’ hearings have started. Following discovery, the case will eventually be heard by a jury.
Case Significance
At the time that it was filed, this case represented a strategic breakthrough amid the stalled domestic investigations into the Beirut Port explosion in Lebanon.
The case offers victims, particularly those holding nationalities other than the Lebanese one, a meaningful opportunity to pursue justice before the courts of their second countries. For victims of the blast who do not have American ties, cases like these still serve their interests by uncovering critical evidence and by creating platforms for victims to tell their stories.
This particular case points at a wider network of national and international actors whose corruption and negligence may have contributed to the blast, but who have been subject to less scrutiny in the media. Any ruling can be used in other legal proceedings, and could help hold those responsible accountable, ultimately advancing efforts to uncover the truth.