In a landmark judgment, the Supreme Court has ruled a canal company can bring a civil lawsuit against listed water company United Utilities over the discharge of sewage.
This case is part of a long-running legal battle over the discharge of foul water contaminated with untreated sewage into the Manchester Ship Canal.
The highest court in the UK was asked to decide whether the Manchester Ship Canal Company, the owner of the canal’s beds and banks, can bring a claim over nuisance and trespass when the canal is polluted by discharges of foul water from a sewerage maintained by United Utilities.
This stemmed from the canal company’s threats to bring a claim in the first place. In response, United Utilities asked the court to declare that Manchester Ship Canal had no right of action.
A High Court judge agreed to make the declaration requested by United Utilities, with that decision upheld by the Court of Appeal.
The canal company appealed to the Supreme Court, and over a year ago (March 2023) the parties went in front of the justices.
This morning (Tuesday) the justices handed down their decision, which unanimously allowed the Manchester Ship Canal appeal. Lord Reed and Lord Hodge led the ruling, which ruled the 1991 Act does not prevent the canal company from bringing a claim.
The judgment noted that “there is no suggestion that these polluting discharges are caused by negligence or deliberate wrongdoing on the part of United Utilities.”
Commenting on the decision, Joanne Holbrook, of counsel at Herbert Smith Freehills, stated: “The timing of this judgment is key.”
“With interim determinations a few days away, it further reinforces the urgent need for investment and infrastructure growth in the sector.”
“The decision is clear, a course of action in private nuisance exists, but the challenges in responding, due to the operation of the regulatory regime and how it is financed, may well affect the remedies available,” she added.
A recent Government data found United Utilities polluted more than any other water firm in 2023, pouring 3.6m hours into England’s rivers over the course of the year.
Back in May the North West water company reported that its revenue in the year to 31 March rose by 8.1 per cent from £1.8bn to £1.94bn. As the company cited higher customer bills as the reason for an uptick in revenue and operating profit in its final results.