Landmark case gives warning for companies involved in waste management
Leading Bolton law firm Stephensons has won a landmark case against the Environment Agency following the Agency’s summons for criminal proceedings against a waste management company who was just doing its job. This followed a call out to relieve a blockage in a main sewer which was causing sewage to seep into a small stream in Rainworth.
In April 2004, a summons was issued against Eurotech Environmental Ltd by the Environment Agency, citing Section 85 of the Water Resources Act 1991, whereby criminal liability can extend to contractors who are brought in to clear waste and pollution.
Acting for Eurotech Sean Joyce, criminal lawyer for corporate business at Stephensons, said: “Even though Eurotech did not cause the pollution, this case is of significant importance to any SME business involved in waste management.
“It’s fantastic to have won the case on appeal and see our clients exonerated and awarded costs. However, there are now clear boundaries that the Water Resources Act sets out and we strongly recommend that any contractor looks carefully at where their responsibility lies, who is responsible for what and establish the precise role and nature of authority assumed by the contractor.”
The case has raised other issues for small businesses. Chris Banks, managing director of Eurotech said: “This has had a major impact on my company and my personal life. What we thought was a routine job turned into a nightmare. To end up in London at the High Court felt a bit like lambs to the slaughter.
“Small businesses are normally prepared for most crises relating to problems arising from day-to-day issues, but how many are prepared for being labelled a criminal for simply doing a job they are contracted to do?”
Fortunately, Chris had legal insurance cover, which is handled by Stephensons, through being a member of the British Chamber of Commerce. “It was not until a few years ago that I was made aware of the benefits of being a Chamber member through a campaign the Chamber was running. Without this cover my business would have gone bankrupt as my costs alone were significant, let alone the Agency costs and any fine I could have received in addition had I lost. I really would advise other businesses to take a look at the policy details of any organisation of which they are members so they have a chance to fight back if they know something is unjust.”
The case against Eurotech Enviromental Ltd arose from a verbal sub-contracting agreement between Eurotech and Biffa, the main contractor, in April 2003. The agreement was to provide an overnight tankering service to relieve a build up of sewage in the main drains beneath Old Rufford Pit Lane in Rainworth that was overflowing into a nearby waterway. As is normal practice in incidents like this, it would be the responsibility of others to undertake the actual repair of the manhole and unblock the drain.
The agreement included confirmation from Chris that Eurotech’s tanker would need to be away no later than 6.30am the next morning but that he would do what they could to reduce the problem in the allocated time. Which is what Eurotech did, having ensured that the overflow of sewage was greatly reduced.
Despite carrying out the work exactly as promised and to a high standard a summons was brought about by the Environment Agency alleging two criminal offences against Mr Banks’ company, Eurotech. Firstly that Eurotech had caused the pollution and secondly that it had knowingly permitted the pollution.
“Considering Eurotech were not involved in the original cause of the pollution and was not aware of the pollution of the nearby waterway it is unusual that criminal proceedings were brought which carried significant fines,” explains Sean.
Chris can now go back to concentrating on his highly specialised liquid waste removal business. Said Chris “I was so pleased that I had a firm of solicitors of this calibre helping me through this. Stephensons was able to provide specialist knowledge covering environmental insurance and of course corporate business regulatory law and they were faultless in their handling of the case.
For information: Bridget at Bridge Creative Tel: 01616 966 229
Email: bridget@bridgecreative.co.uk