Judge rules Biffa can continue with £160m case against Scottish Government
Judge rules Biffa can continue with £160m case against Scottish Government
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A judge has ruled that waste management company Biffa can proceed with suing the Scottish Government for about £160 million following the collapse of the deposit return scheme (DRS). Lawyers representing the Government had attempted to have the case dismissed, but Lord Clark ruled it can go ahead at the Court of Session.
Biffa’s lawyers say Lorna Slater, the green co-leader who was a minister at the time, “negligently misrepresented” the state of the scheme which led to the company investing significantly. In their legal arguments, they highlighted a letter from Ms Slater to Biffa’s chief executive in May 2022, which set out ministers’ “unwavering commitment” to deliver the DRS in August 2023.
However, the Scottish Government changed its plans when UK ministers used the Internal Market Act (IMA) to rule glass bottles could not be included. A UK-wide DRS is not expected to begin before 2027. Lord Clark said the date on which the Scottish Government sought an exclusion from the IMA is a “matter in dispute between the parties”.
Circularity Scotland, which was set up to administer the Scottish DRS, fell into administration in June 2023 and Biffa’s contract was terminated. The company said it expected to make profits of £114.8 million over 10 years through the contract and it invested £51.4 million in assets like sorting machines as it prepared for the “go live” date.
