The Court of Appeal ruled Tuesday that Dutch company, Otjiaha B.V., previously called Melchemie, is not liable for supplying Iraq with mustard gas in the 1980s. Five Iranian nationals have sued the company for supplying the gas that was used against them when they served in the Iranian army.

When Iraq and Iran were at war in the first half of the 1980s, Iraq, under Saddam Hussein, used banned chemical weapons, including mustard gas. The five Iranians say they suffered serious physical injuries from the gas. According to them, Otjiaha and its now-deceased managing director, Hans Melchers, and the majority shareholders are liable for their injuries, as they provided hionyl chloride, a precursor for mustard gas, to Iraq.

In November 2023, the court had already ruled that Otjiaha and Hans Melchers were not liable for the injuries. That verdict was then appealed, with the Court of Appeal also finding that the company is not liable.

On the other hand, in 2023, the court in The Hague ordered Forafina Beleggingen, formerly KBS Holland, to compensate the Iranians for their injuries. The company was accused of supplying TDG, another chemical used in mustard gas production. It is not known whether the damages were paid.

When Otjiaha was being sued in 2023, Melchers, who was a billionaire at the time, was accused of supplying 1,850 tons of thionyl chloride to Iraq between 1982 and 1984 as an “agricultural pesticide.” It was said that Melchers had overlooked the misuse of the chemicals.