The management of risk is at the top of the agenda for public bodies such as utility companies.
A recent legal case in the High Court has demonstrated that this risk extends beyond operational risk and potential reputational damage – and the threat of legal claims in the civil courts needs to be appreciated and managed, according to a leading regulatory lawyer.
In a landmark case, chicken producer Avara Foods and Welsh Water have recently appeared at the High Court accused of polluting three rivers along the English-Welsh border: the Usk, Wye and Lugg.
Until recently manure from the many chicken sheds operating in the area was used as a cheap fertiliser to spread on nearby arable farmers’ fields.
The local residents’ legal claim alleges that nutrients from the manure frequently wash off the soil into waterways, leading to high levels of phosphorus, nitrogen and bacteria entering the rivers.
They claim this has caused the water to turn green, smelly and slimy in warm weather – so-called algal blooming.
Welsh Water has been included in the claim. It is contended that they should be responsible for sewage spills which have polluted the three rivers. Anglers blame pollution for the decline in recent years of the Wye’s population of Atlantic salmon.
The companies being sued are accused of negligence, causing private and public nuisance and even trespass where the riverbed has been affected on a claimant’s property. The residents are demanding improvements to the condition of the rivers and compensation to people whose lives have been affected.
The claimants allege that although it was arable farmers who spread the manure, Avara Foods and its subsidiary Freemans of Newent should be held responsible for the consequences.
Avara Foods have called the claims “misguided” while Welsh Water has referred to them as “misconceived.”
“This is the biggest environmental pollution case ever brought in the UK, both in terms of the number of claimants and the geographical spread,” says regulatory lawyer Tim Williamson, a partner at national law firm Clarke Willmott, who advises clients across sectors including energy, infrastructure, and utility companies, helping them mitigate regulatory risks and maintain compliance.
“The implications are quite serious for the water and utility companies, and in fact for public authorities in general – as all are now increasingly subject to outcomes in the actual courts, including the High Court, as well as relentless scrutiny in the court of public opinion.
“The ongoing case involving Welsh Water and Avara Foods demonstrates how regulatory understanding and the management of an applicable framework is mission critical, because it gives rise to so many different types of risk.”
Speak to our team
For more information, please contact a member of our regulatory team or send an enquiry.
