The Durham Company Ltd v Durham County Council [2022] EWCA Civ 66 (01 February 2022)

The Durham Company Ltd v Durham County Council [2022] EWCA Civ 66 (01 February 2022)

The majority of the Court of Appeal held that TDC's claim for damages had no real prospect of success because it could not show that any breach of Article 108(3) TFEU by the Council was sufficiently serious to justify Francovich damages. The Council's position on selectivity was at least arguable, and there was no evidence of intentional or reckless breach. Declaratory relief was refused as academic post-Brexit. However, Lord Justice Edis dissented, holding that summary judgment was inappropriate given unresolved factual issues regarding the Council's state of mind and the seriousness of any breach.

Citation
[2022] EWCA Civ 66
Parties
Claimant/appellant: The Durham Company Limited; Defendant/respondent: Durham County Council
Jurisdiction
England and Wales
Judgment Date
01 February 2022
Procedural Posture
Civil Appeal / Appeal From Summary Judgment in the High Court; Court of Appeal Judgment
Outcome
Appeal dismissed by majority; summary judgment for the Council upheld
Legal Topics
State Aid, Article 107 and 108 TFEU, Francovich Damages, Summary Judgment, Selectivity Condition, Breach of EU Law, Public Authority Liability

Case Brief

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Parties

The Durham Company Limited

Claimant/appellant

Durham County Council

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Summary Judgment in the High Court; Court of Appeal Judgment

  1. 1 Whether the Council's provision of commercial waste collection services constituted unlawful State aid under Article 107(1) TFEU
  2. 2 Whether breach of Article 108(3) TFEU was sufficiently serious to justify Francovich damages
  3. 3 Whether declaratory relief should be granted after Brexit

Ratio Decidendi

The majority of the Court of Appeal held that TDC's claim for damages had no real prospect of success because it could not show that any breach of Article 108(3) TFEU by the Council was sufficiently serious to justify Francovich damages. The Council's position on selectivity was at least arguable, and there was no evidence of intentional or reckless breach. Declaratory relief was refused as academic post-Brexit. However, Lord Justice Edis dissented, holding that summary judgment was inappropriate given unresolved factual issues regarding the Council's state of mind and the seriousness of any breach.

Court Disposition

Appeal dismissed by majority; summary judgment for the Council upheld

Orders

  • TDC's appeal dismissed
  • Summary judgment for Durham County Council maintained