Formosa Ha Tinh Steel Plant Marine Pollution Damage Compensation Civil Lawsuit
Case Story
A total of 7,875 fishermen and aquaculture operators from Ha Tinh province, Vietnam, have filed a civil lawsuit in a Taiwanese court against Formosa Ha Tinh Steel Corporation and 24 of its directors and shareholders. The case stems from a severe marine pollution incident that occurred at Formosa’s Vietnam plant in 2016, which severely damaged local fishing livelihoods and the health of residents. The plaintiffs argue that although the Formosa Group has paid compensation to the Vietnamese government, the affected people have not received substantial compensation, and the environment has not been restored. Having repeatedly failed in their lawsuits in Vietnam and facing suppression, the victims turned to the Taiwanese courts for relief. They claim that the defendants should bear joint liability for damages, jointly compensate the plaintiffs for their economic losses, and request the court to order the defendants to cease their polluting activities and restore the damaged marine environment.
Plaintiff
7,875 fishermen, seafood restaurant owners, etc. in Ha Tinh, Vietnam (number at the time of the indictment in 2019).
Appointed attorney
Attorneys: Lin Sanjia, Zhang Yuyin, Guo Hongyi, Huang Xinwen, and Lü Guanhui
Defendant
Formosa Ha Tinh Steel Corporation, its directors, and shareholders from 2014 and 2016, totaling 24 people.
Where is the case currently progressing?
Four plaintiffs successfully appealed, and their cases are still under review by the Taipei District Court.
As for the remaining plaintiffs whose appeals and subsequent appeals were rejected by the Taiwan High Court, one plaintiff filed a constitutional lawsuit, but the Constitutional Court ruled that it would not accept the case (Ruling No. 743 of 2015).
What happened? Why was a civil lawsuit filed against the Formosa Plastics Group?
In early April 2016, a serious marine pollution incident occurred at the Formosa Ha Tinh Steel Plant in Vietnam, causing the death of marine life along a large area of more than 200 kilometers of coastline in central Vietnam. This severely impacted local fisheries, salt production, tourism and related industries, and also endangered the health of residents.
According to a report submitted to the National Assembly by the Vietnamese Minister of Natural Resources and Environment on July 26, 2016, Formosa Steel Vietnam was found to have committed 53 violations. The most serious violation was the unauthorized replacement of a newer and more environmentally friendly dry quenching system with an outdated and polluting wet quenching system. The report estimated that 17,682 fishing vessels and 40,966 people were directly affected by the pollution, while 176,285 workers were indirectly affected. Furthermore, the actual numbers are likely much higher than the official report, with an estimated 4 million people affected in the central coastal provinces of Vietnam. Many were forced to leave their homes and become transnational migrant workers in order to make a living.
This incident sparked large-scale peaceful demonstrations by the Vietnamese people. However, the Vietnamese government responded with repression and silencing. Dozens of human rights defenders, journalists, bloggers, and students who participated in protests or reported on the Formosa Plastics Vietnam Steel pollution incident were arrested, detained, and even severely punished by the Vietnamese government.
Regarding this large-scale pollution incident, while the Formosa Plastics Group admitted its wrongdoing and reached an agreement with the Vietnamese government, claiming it would pay the Vietnamese government US$500 million in compensation, it failed to investigate the actual damage caused by the pollution, took no measures to ensure that the victims actually received compensation, and did not address the environmental damage. The Vietnamese victims filed three lawsuits locally, all of which failed. Even the parish priests who assisted the victims in filing the lawsuits faced intimidation tactics such as house arrest and imprisonment. Given the political and social situation in Vietnam, the overseas victims chose to file a civil lawsuit in the Taipei District Court in June 2019, marking the first cross-strait lawsuit filed by a company against human rights in Taiwan.
What demands do we have for the court?
Formosa Ha Tinh Steel Corporation, its directors, and 24 shareholders from 2014 and 2016, shall bear joint and several liability for damages as joint tortfeasors, and shall compensate the plaintiff for the damages suffered (NT$140,297,034), cease the polluting activities, take appropriate measures to remove the pollution, and improve and restore the environment.
What are the main legal issues in this case?
1. Does the Chinese court have international jurisdiction over this case?
The original trial court and the appellate court adopted a negative view, and their reasoning was roughly as follows: (1) By analogy with the provisions of Article 15, Paragraph 1 and Article 20, Proversial, of the Civil Procedure Law, when the domiciles of the defendants in a joint lawsuit involving tort are not in the jurisdiction of the same court, only the court in the place where the joint tort occurred has joint jurisdiction. Therefore, this case should be under the jurisdiction of the Vietnamese court; (2) The litigation interests involved in this case are more closely related to Vietnam, and it is more conducive to the substantive fairness between the parties and the speed and economy of the procedure to be heard in the Vietnamese court.
After the plaintiff filed a second appeal, the Supreme Court issued its first remand ruling, holding that the High Court’s ruling, which cited the provisions of the Code of Civil Procedure regarding jurisdiction as its legal basis, conflicted with the nature of international judicial jurisdiction norms: “The plaintiff’s decision to directly determine which country’s court has common jurisdiction based on the provisions of our country’s law, thereby denying the judicial jurisdiction of the country where the defendant resides due to the connection factor of the defendant’s domicile, is inconsistent with the aforementioned international judicial jurisdiction norms, which only directly stipulate under what circumstances a domestic court can adjudicate a certain foreign-related dispute, and lacks appropriateness, and cannot serve as a basis for determining international judicial jurisdiction.”
The appellate court subsequently issued its first revised ruling, holding that: the Chinese courts have international jurisdiction over the 13 defendants, including Formosa Plastics Corporation, which has offices, places of business, or domiciles in Taiwan; however, they have no international jurisdiction over the 11 foreign legal persons and natural persons, including Formosa Ha Tinh Steel Corporation and other shareholders.
It should be emphasized that the plaintiff’s legal team has consistently urged the court to consider the following:
The victims were suppressed by the Vietnamese government and could not enjoy the protection of fair litigation in Vietnam.
The victims in this case were subjected to violent suppression, improper arrest, and detention by the Vietnamese government during the litigation process. Furthermore, the Vietnamese court participated in negotiations between Formosa Plastics and the Vietnamese government before the case was filed, suggesting it may have already taken a special stance on the case and was not independent. Therefore, requiring the victims to litigate in Vietnam is neither substantive fairness nor procedural economy.
This case is sufficiently related to Taiwan, and the Taiwanese court should have jurisdiction.
Formosa Ha Tinh Steel Company is a company established by the Formosa Plastics Group in Vietnam. Except for Japan Steel, its shareholders are all Taiwanese companies, including Formosa Plastics, Formosa Chemicals, Taiwan Petrochemical, Sinosteel, etc. According to the principle of “defeat for the original”, this case is fully implicated in Taiwan.Furthermore, the Formosa Plastics Group adopts a highly centralized decision-making model, and all major policies and investment projects of the companies within the group must be discussed and decided through the administrative center. The operational details of Formosa Plastics Yuegang Company that are closely related to this lawsuit are all coordinated by the Formosa Plastics General Management Office. Therefore, the important decision-making evidence, construction plans, project contracting, project management, and key operation and management evidence of environmental safety and health in this lawsuit are all concentrated in Taiwan, so this lawsuit is closely related to our country.
2. Is the power of attorney for litigation agent issued by the plaintiff genuine?
The power of attorney for litigation agent issued by the plaintiff in this case comes in several different forms. Some have been certified by the Chinese Embassy in Vietnam, while others have not been certified, but the lawyers personally went to Vietnam to confirm the authenticity of the authorization, sign the power of attorney, and take photos and record the entire process as evidence.
The Supreme Court’s second remand ruling held that, according to Article 69, Paragraph 1, a litigation agent must submit a power of attorney at the outset of the litigation. A power of attorney issued by a party abroad to appoint a litigation agent is a private document. If another party disputes its authenticity, it must be authenticated by a Taiwanese overseas mission in accordance with the regulations for notarization by consular personnel abroad to be considered genuine; otherwise, the agency authority is lacking.
The High Court subsequently issued a second revised ruling, dismissing the plaintiff’s appeal as unlawful because the plaintiff failed to provide an authenticated power of attorney from an overseas mission within the stipulated time.
However, the plaintiffs’ legal team has consistently urged the court to address the following:
To have Vietnamese-issued documents sent to Taiwan for trial, the parties involved must first have their identities verified by the Vietnamese government (this step was later waived after a human rights group advocated for it, and a legislator coordinated with the diplomatic authorities), before they can have the documents authenticated at the Taipei Economic and Cultural Office in Vietnam. However, for the protesters to have their identities verified by the Vietnamese government themselves is tantamount to throwing themselves to the wolves. Even if they only go to the Taipei Economic and Cultural Office in Vietnam for authentication, the lack of protection from a diocesan priest still presents challenges such as the long distance and personal safety concerns. The plaintiffs’ failure to amend the power of attorney within the stipulated timeframe is due to subjective and objective obstacles that make it difficult for them to travel to our overseas offices for authentication.
Furthermore, using authentication by our overseas offices as the sole method of proving the authenticity of documents adds a legally unnecessary restriction to Article 357 of the Code of Civil Procedure, which states that “private documents should be proven authentic by the person presenting the evidence.” This unnecessarily increases the burden on the petitioners and effectively restricts their right to seek relief from the courts.
What effect/goal does this lawsuit hope to achieve?
We demand that Formosa Plastics Group take responsibility for the environmental damage and human rights abuses at its Ha Tinh plant in Vietnam, and assist overseas victims in obtaining judicial relief in Taiwanese courts.
You can search for the judgment document if you wish to read it.
Taipei District Court, Taiwan, 2019, Retrial Ruling No. 674
Taiwan High Court, 2019, Appeal Ruling No. 1466
Supreme Court, 2020, Appeal Ruling No. 1084
Taiwan High Court, 2020, Appeal Retrial Ruling No. 39
Supreme Court, 2020, Appeal Ruling No. 1019
Taiwan High Court, 2023, Appeal Retrial Ruling No. 13
Taiwan High Court, 2024, Sound Ruling No. 243