Dwr Cymru Cyfyngedig (Welsh Water) v Corus UK Ltd [2007] EWCA Civ 285 (30 March 2007)

Dwr Cymru Cyfyngedig (Welsh Water) v Corus UK Ltd [2007] EWCA Civ 285 (30 March 2007)

Clause 17 of the Llanwern 1993 Agreement was intended to have contractual effect, entitling Corus to continued supply of water after 31 March 2004 on terms to be agreed or, failing agreement, determined by the Director under section 56 of the Water Industry Act 1991. The relevant request for supply was made before any charges scheme was introduced, so the Director retained jurisdiction to determine charges. Welsh Water could not unilaterally impose a charges scheme to override the agreed mechanism. The judge below erred in holding otherwise.

Citation
[2007] EWCA Civ 285
Parties
Claimant/respondent: Dwr Cymru Cyfyngedig (Welsh Water); Defendant/appellant: Corus UK Limited
Jurisdiction
England and Wales
Judgment Date
30 March 2007
Procedural Posture
Civil Appeal / Appeal From Summary Judgment (cpr 24.2) in the High Court, Chancery Division
Outcome
Appeal allowed
Legal Topics
Contractual Construction, Statutory Interpretation, Water Supply Agreements, Implied Terms, Enforceability of Agreements, Jurisdiction of Regulatory Authorities
Contract Law Utilities Law Administrative Law Contractual Construction Statutory Interpretation Water Supply Agreements Implied Terms Enforceability of Agreements +1 more

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Parties

Dwr Cymru Cyfyngedig (Welsh Water)

Claimant/respondent

Corus UK Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Summary Judgment (cpr 24.2) in the High Court, Chancery Division

Legal Issues

  1. 1 Whether clause 17 of the Llanwern 1993 Agreement had contractual effect after 31 March 2004
  2. 2 Whether the statutory regime under the Water Industry Act 1991 displaced or supplemented the contractual machinery for determining charges
  3. 3 Whether the introduction of a charges scheme by Welsh Water deprived Corus of contractual rights

Ratio Decidendi

Clause 17 of the Llanwern 1993 Agreement was intended to have contractual effect, entitling Corus to continued supply of water after 31 March 2004 on terms to be agreed or, failing agreement, determined by the Director under section 56 of the Water Industry Act 1991. The relevant request for supply was made before any charges scheme was introduced, so the Director retained jurisdiction to determine charges. Welsh Water could not unilaterally impose a charges scheme to override the agreed mechanism. The judge below erred in holding otherwise.

Court Disposition

Appeal allowed

Orders

  • Summary judgment for Welsh Water set aside
  • Matter remitted for determination in accordance with the contractual mechanism (Director's determination under section 56)