header-logo header-logo

Utility companies not liable for contaminated land

05 July 2007
Issue: 7280 / Categories: Legal News , Environment , Commercial
printer mail-detail

Utility companies and their shareholders are not liable for certain environmental liabilities—including site clean-up costs—of their predecessor entities, the House of Lords has ruled.

In R (on the application of National Grid Gas plc (formerly Transco plc)) v Environment Agency, the law lords allowed an appeal by National Grid Gas (NGG)—formerly Transco—against a High Court decision that it should contribute towards the cost of cleaning up sites contaminated by former gas companies.

The Environment Agency’s claim that NGG was an “appropriate person” for the purposes of Pt 2A of the Environmental Protection Act 1990 (EPA 1990), and should therefore pay towards the remediation of a former public gasworks site, was rejected by the court.

CMS Cameron McKenna partner Paul Sheridan says the House of Lords has effectively ruled that when passing Pt 2A in 1995, the then Parliament did not intend that this retrospective liability would overreach the intent of the Parliament at the time of the British Gas and other privatisations.
“This will no doubt give rise to considerable academic and constitutional debate,” he adds.

In the ruling Lord Scott said: “I find it extraordinary and unacceptable that a public authority, a part of government, should seek to impose a liability on a private company, and thereby to reduce the value of the investment held by its shareholders, that falsifies the basis on which the original investors, the subscribers, were invited by government to subscribe for shares.”

Issue: 7280 / Categories: Legal News , Environment , Commercial
printer mail-details

MOVERS & SHAKERS

Gibson Dunn—London partner promotions

Gibson Dunn—London partner promotions

Firm grows international bench with expanded UK partner class

Shakespeare Martineau—six appointments

Shakespeare Martineau—six appointments

Firm makes major statement in the capital with strategic growth at The Shard

Myers & Co—Jess Latham

Myers & Co—Jess Latham

Residential conveyancing team expands with solicitor hire

NEWS
One in five in-house lawyers suffer ‘high’ or ‘severe’ work-related stress, according to a report by global legal body, the Association of Corporate Counsel (ACC)
The Legal Ombudsman’s (LeO’s) plea for a budget increase has been rejected by the Law Society and accepted only ‘with reluctance’ by conveyancers
Overcrowded prisons, mental health hospitals and immigration centres are failing to meet international and domestic human rights standards, the National Preventive Mechanism (NPM) has warned
Two speedier and more streamlined qualification routes have been launched for probate and conveyancing professionals
Workplace stress was a contributing factor in almost one in eight cases before the employment tribunal last year, indicating its endemic grip on the UK workplace
back-to-top-scroll