UKH

Ruling paves way for businesses and public to sue water firms over sewage

Decision by supreme court means water companies could be sued for damage caused by dumping of human waste

Water companies could face a spate of legal challenges by people and businesses affected by sewage pollution after a landmark ruling found United Utilities can be sued by a private company for damage caused by the dumping of human waste.

https://www.theguardian.com/environment/article/2024/jul/02/landmark-united...

In reply to Martin W:

Good news!!

In reply to Martin W:

I'll believe it when I see it happen.

In reply to Ridge:

Yeah; seems to have been rumbling on since at least 2010...

In reply to Martin W:

So what happens if a water company is liable for a very big payout in the case of a successful claim? Who is going to end up paying?

Will it be the billpayers, milked to preserve profitability and dividend payouts? Will shareholders (remember that in the case of United Utilities a substantial part is owned by rapacious asset management companies like Blackrock) ever have to take a haircut?

It seems to me that a company whose operating model now leaves it open to constant claims against it should not be worth very much.

In reply to pasbury:

The company. But if its a very large amount then they may not have the money, seeing as how they're all so levered-up with debt

Shareholders refuse to produce the cash. Company declares bankruptcy. Government uses its reserve powers to take over and run the business. Eventually sells it to a new owner - probably after changing the law to prevent future claims.

In reply to Martin W:

Isn't "The Dock" reserved for criminal cases?

In reply to wercat:

It could be literal. After all its the Ship Canal company, that's taking action. Let the punishment fit the crime. You shit in it, you swim in it.

In reply to Martin W:

It’s incredible to think that anyone - and by ‘anyone’ I mean the Court of Appeal - ever imagined that dumping sewage into watercourses could *not* be a private nuisance. I haven’t read the CA’s judgment but it’s not easy to imagine how they arrived at that conclusion.

Fun fact; the KC who led the case for the claimant once threw an egg at Michael Heseltine.

jcm

In reply to dread-i:

very good!

In reply to pasbury:

SW Water's shareholders are paying for the recent problems in Devon, and also paid for a previous big problem.

In reply to pasbury:

UU is one of the few publicly listed water companies out there. I think Blackrock own less than 10% of the total shares in their business. They are not a hedge fund owned/controlled company either. 

In reply to johncoxmysteriously:

By the same mechanism that computer systems were presumed in law to be perfect?