Burmah Oil Co Ltd V Lord Advocate
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''Burmah Oil Company Ltd v Lord Advocate'' 965AC 75, was a court case, raised in
Scotland Scotland is a Countries of the United Kingdom, country that is part of the United Kingdom. It contains nearly one-third of the United Kingdom's land area, consisting of the northern part of the island of Great Britain and more than 790 adjac ...
, and decided ultimately in the
House of Lords The House of Lords is the upper house of the Parliament of the United Kingdom. Like the lower house, the House of Commons of the United Kingdom, House of Commons, it meets in the Palace of Westminster in London, England. One of the oldest ext ...
. The case is an important decision in British constitutional law and had unusual legal repercussions at the time.


Facts

This case concerned the destruction of
oil field A petroleum reservoir or oil and gas reservoir is a subsurface accumulation of hydrocarbons contained in porous or fractured rock formations. Such reservoirs form when kerogen (ancient plant matter) is created in surrounding rock by the prese ...
s in
Burma Myanmar, officially the Republic of the Union of Myanmar; and also referred to as Burma (the official English name until 1989), is a country in northwest Southeast Asia. It is the largest country by area in Mainland Southeast Asia and ha ...
belonging to the Burmah Oil Company by
British British may refer to: Peoples, culture, and language * British people, nationals or natives of the United Kingdom, British Overseas Territories and Crown Dependencies. * British national identity, the characteristics of British people and culture ...
forces during the Japanese invasion of Burma in 1942. The destruction was ordered in order to prevent the installations from falling into the hands of the advancing
Imperial Japanese Army The Imperial Japanese Army (IJA; , ''Dai-Nippon Teikoku Rikugun'', "Army of the Greater Japanese Empire") was the principal ground force of the Empire of Japan from 1871 to 1945. It played a central role in Japan’s rapid modernization during th ...
. Burmah Oil brought an action against the UK government, represented by the
Lord Advocate His Majesty's Advocate, known as the Lord Advocate (), is the principal legal adviser of both the Scottish Government and the Crown in Scotland for civil and criminal matters that fall within the devolution, devolved powers of the Scottish P ...
. In the
Outer House The Outer House (abbreviated as CSOH in neutral citations) is one of the two parts of the Scottish Court of Session, which is the supreme civil court in Scotland. It is a court of first instance, although some statutory appeals are remitted ...
of the
Court of Session The Court of Session is the highest national court of Scotland in relation to Civil law (common law), civil cases. The court was established in 1532 to take on the judicial functions of the royal council. Its jurisdiction overlapped with othe ...
, Lord Kilbrandon found in favour of Burmah Oil. The Crown appealed, and the First Division of the
Inner House The Inner House is the senior part of the Court of Session, the supreme civil court in Scotland; the Outer House forms the junior part of the Court of Session. It is a court of appeal and a court of first instance. The chief justice is th ...
of the Court of Session unanimously reversed the decision below. Burmah Oil then appealed to the House of Lords.


Judgment

Five
Lords of Appeal in Ordinary Lords of Appeal in Ordinary, commonly known as Law Lords, were judges appointed under the Appellate Jurisdiction Act 1876 to the British House of Lords, as a committee of the House, effectively to exercise the judicial functions of the House of ...
sitting in the House of Lords held by a 3–2 majority that although the damage was lawful, it was the equivalent of requisitioning the property. Any act of requisition was done for the good of the public, at the expense of the individual proprietor, and for that reason, the proprietor should be compensated from public funds. Viscount Radcliffe and Lord Hodson dissented.


Significance

In the end, the result was frustrated by the passing of a retroactive Act of Parliament, the
War Damage Act 1965 The War Damage Act 1965 (c. 18) is an act of United Kingdom Parliament which exempts the Crown from liability in respect of damage to, or destruction of, property caused by acts lawfully done by the Crown during, or in contemplation of the outbr ...
, which retroactively exempts the Crown from liability in respect of damage to, or destruction of, property caused by acts lawfully done by the Crown during, or in contemplation of the outbreak of, a war in which it is engaged.


See also

*
UK company law British company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directive (European Union), Directives and court cases, the company is th ...
*
UK public services law The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...


References

{{Reflist 1965 in Scotland House of Lords cases Court of Session cases 1965 in United Kingdom case law Burmah-Castrol United Kingdom administrative case law 1965 in the environment United Kingdom constitutional case law Japanese invasion of Burma