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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

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
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