Plaintiff(s): The Beirut Bar Association and the Families of Victims of the Beirut Port Explosion
Defendant(s): Savaro Limited
Court: The High Court of Justice in London (United Kingdom)
In November 2013, the ship Rhosus docked at the Beirut Port carrying 2,750 metric tons of military grade ammonium nitrate, which were allegedly purchased by the British chemical trading company, Savaro Limited (Savaro), from Rustavi Azot, a chemical factory in Georgia.
Purportedly bound for Mozambique, the ship docked at the Beirut Port to transport an additional 160 tons of seismic equipment to Jordan. As a result of the additional weight, the ship’s hatches began to buckle. The ship was also deemed unseaworthy and had outstanding debts, causing its impoundment by Beirut’s Enforcement Department. The 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 damage across the city.
Reporting by investigative journalist Firas Hatoum suggests that Savaro is a shell company potentially linked to Syrian-Russian businessmen who have been sanctioned by the United States for their ties to the former Syrian regime. According to Reuters, Marina Psyllou, the company’s listed owner, stated that she was “acting as an agent on behalf of another beneficial owner, whose identity she could not disclose.” Psyllou also claimed that the company had remained dormant since its registration, denying any connection to the Beirut Port blast.
On January 12, 2021, Psyllou submitted a request for liquidation to the Companies House (the United Kingdom’s corporate registry)—an action that the Beirut Bar Association viewed as a potential attempt to evade accountability. On January 25, 2021, the Association’s then-president Melhem Khalaf addressed a letter to British parliamentarian Margaret Hodge urging the halt of Savaro’s liquidation. Consequently, Hodge, along with parliamentarian John Mann, called for a British-led investigation into the company, and the Companies House suspended Savaro’s liquidation process.
Summary of the Case
In August 2021, the Beirut Bar Association, along with families of victims of the blast, filed a civil lawsuit against Savaro before the London High Court of Justice through the law firm Dechert LLP. The British court exercised jurisdiction over the case because Savaro is a company registered in England and Wales, but it applied Lebanese law to the case because the damage occurred in Lebanon.
The lawsuit alleged that Savaro is the owner of the imported stockpile of military grade ammonium nitrate, and that the company failed to ensure its proper storage at the Beirut Port, which led to the catastrophic August 4 explosion. Pursuant to Articles 122, 123, and 131 of the Lebanese Code of Obligations and Contracts, Savaro, as the guardian of the ammonium nitrate, bears responsibility for any unjust damage caused by the stockpile it owns, provided that such damage resulted from its actions or negligence. Accordingly, the claimants sought compensation for the deaths, personal injuries, and property damage caused by Savaro’s negligence.
While Savaro denied its responsibility, the court issued an order in June 2022 compelling the company to reveal its ultimate beneficial owner. If it does not do so, Savaro’s defense will be struck out. The company has since breached the court order by failing to reveal its owner.
Procedural Status
On February 1, 2023, the High Court of Justice in London found Savaro liable for the deaths, personal injuries, and property damage resulting from the Beirut Port explosion. Four months later, on June 13, the court awarded each claimant who is a relative of a deceased victim £100,000 (about $126,000, based on the exchange rate at the time) in damages. Additionally, one claimant, a surviving victim of the explosion, was awarded £125,000 (about $157,000) for pain and suffering, along with more than £400,000 (around $500,000) for past and future medical expenses. The court also ordered Savaro to pay £760,000 (around $950,000) in court costs, which will be donated to charity.
Savaro is unable to pay the damages awarded in the case. On December 4, 2024, the court ordered winding up Savaro due to its insolvency.
Case Significance
Despite Savaro’s insolvency, this case marks the first court-based decision to hold an actor accountable for the Beirut Port explosion. It underscores that, even more than a decade after the military grade ammonium nitrate was shipped to Beirut in 2013, accountability is still possible, and that justice for the victims can be pursued through several legal avenues.