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05 July 2007
Issue: 7280 / Categories: Legal News , Environment , Commercial
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Utility companies not liable for contaminated land

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
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MOVERS & SHAKERS

Laytons ETL—Maximilian Kraitt

Laytons ETL—Maximilian Kraitt

Commercial firm strengthens real estate disputes team with associate hire

Switalskis—three appointments

Switalskis—three appointments

Firm appoints three directors to board

Browne Jacobson—seven promotions

Browne Jacobson—seven promotions

Six promoted to partner and one to legal director across UK and Ireland offices

NEWS

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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