A Court of Session judge has rejected a £50 million compensation claim by waste management firm Biffa against the Scottish Government over the failed deposit return scheme. Lord Sandison dismissed the lawsuit on Friday, ruling that a 2022 letter from former minister Lorna Slater did not constitute negligent misrepresentation.
Biffa had sought £51.4 million in damages, arguing that Slater's May 2022 letter misled the company about the scheme's viability. The waste firm claimed the letter failed to mention the necessity of an exemption from the UK Government's Internal Market Act, which would have allowed the inclusion of glass bottles in the scheme.
Lord Sandison firmly rejected this argument. He said he could «not accept that a reasonable person could have looked at» the letter as «amounting to a general statement that there was no risk that the scheme would not be proceeding and that all would be well». The judge ruled ministers «did not breach the duty incumbent on them» and that «the matters which they stated in the letter were true and accurate».
The Scheme's Collapse
The deposit return scheme, planned for launch in August 2023, would have charged shoppers a deposit when buying drinks with cash returned upon recycling empty containers. The initiative collapsed after then Scottish Secretary Lord Jack refused to grant the necessary exemption from the Internal Market Act.
Lord Sandison emphasized the court's narrow focus. «The court is not concerned with the question of who (if anyone) ought to be regarded as bearing political responsibility for the failure of the Scottish deposit return scheme to launch in August 2023», he stated. Instead, the court examined only «the legal questions of whether the defenders owed a duty of care to the pursuer» and whether any such duty was breached.
Political Fallout
The ruling has intensified criticism of Westminster's role in Scottish devolution. A Scottish Green spokesperson said «devolution is not working for Scotland», arguing the case demonstrated «the worst of Westminster and the contempt the Tories have for the Scottish Parliament and for our environment».
The spokesperson added: «MSPs voted to introduce a recycling scheme, with businesses investing money to make it happen. There are bottles, cans and glass littering our parks, beaches and streets. This scheme would have led to more of them being recycled. The fact that one person in Westminster was able to topple the scheme against the will of the Scottish Parliament underlines the urgent need for our country to have the same powers as every other self-governing nation.»
Biffa responded cautiously to the decision. A spokesperson said: «We note today's decision and are reviewing our position with our legal advisers.» The Scottish Government declined to comment on the ongoing legal proceedings.
Note: This article was created with Artificial Intelligence (AI).
