Claims against animal feed supplier expected to exceed €6.5m indemnity

A CO Wexford company alleged to have supplied animal feed containing dioxins is insured for a maximum €6.5 million but expects claims against it to be substantially higher, the Commercial Court has been told.

Brian Kennedy, for Millstream Recycling, Clohamon Mills, Bunclody, said potential claimants should be aware his client was subject to an indemnity for a maximum €6.5m and it was anticipated claims would well-exceed that amount.

Counsel also said investigationsinto the alleged contamination have concluded and the company would be able to deliver its defence to the claims against it by July 31.

Mr Justice Peter Kelly, who dealt with procedural matters in two actions against Millstream, noted counsel’s remarks.

The investigations into the course of the alleged contamination were carried out by, amongst others, the Garda and Police Service of Northern Ireland (PSNI).

Millstream has said it is making no admissions in relation to the claims made against it and was advised there were various unresolved issues in relation to the cause of the contamination.

It added that it was awaiting completion of the various investigations before it could properly assess whether to join other parties to the action.

Among those suing the company are two Northern Ireland farmers.

Damian Conlon and his company, DC Cattle, of Newry Road, Crossmaglen, Co Armagh, are seeking some €2.6m damages after some 1,512 cattle at their farm were destroyed.

This followed tests on some animals which showed unacceptably high levels of dioxins were present.

Mr Conlon claims Milltown supplied him between May and October 2008 with biscuit meal feed material which had elevated levels of dioxins and polychlorinated byphenyls (PCBs).

Mr Conlon said he understood oil used in the creation of the biscuit meal feed sold to him was the source of the contamination.

In his action, Co Tyrone farmer William Fulton, is claiming €1.9m damages.

Mr Fulton, of Victoria Road, Bready, Strabane, Co Tyrone, and his company, W&F Fulton, brought their claim arising from the supply of biscuit meal feed purchased from Millstream between May and November 2008.

Mr Fulton claims the biscuit meal was fed to his animals in October, November and until December 8 2008, when it was discovered the meal was contaminated by dioxins to an extent exceeding the maximum limits permitted by the Feeding Stuffs Regulations (Northern Ireland) 2005.

His herd later had to be destroyed, causing consequential losses of €1.9m, Mr Fulton claims.