The Durham Company Ltd (t/a Max Recycle) v Durham County Council [2020] EWHC 3200 (Ch) (25 November 2020)

The Durham Company Ltd (t/a Max Recycle) v Durham County Council [2020] EWHC 3200 (Ch) (25 November 2020)

The Claimant's particulars of claim do not adequately plead the necessary elements for a damages claim under EU law, specifically the requirement of a sufficiently serious breach (the second Francovich condition). The claim for damages is unsustainable as a matter of law. The Council's late reliance on the selectivity criterion for State aid was procedurally unfair and not permitted at this stage. The claims for declaratory and injunctive relief are not struck out, as the underlying State aid issue is not suitable for summary determination given the ongoing European Commission investigation and the factual disputes. The Claimant is refused permission to amend its claim to plead a direct...

Citation
[2020] EWHC 3200 (Ch)
Parties
Claimant: The Durham Company Limited (trading as Max Recycle); Defendant: Durham County Council
Jurisdiction
England and Wales
Judgment Date
25 November 2020
Procedural Posture
Commercial/competition Claim / Application for Strike Out And/or Summary Judgment
Outcome
Claim for damages struck out; permission to amend to plead direct English law breach of statutory duty refused; claims for declaratory and injunctive relief not struck out or summarily dismissed.
Legal Topics
State Aid, Breach of Statutory Duty, Summary Judgment, Strike Out, Francovich Damages, Article 107 and 108 TFEU, Local Authority Powers
Competition Law European Union Law Public Law State Aid Breach of Statutory Duty Summary Judgment Strike Out Francovich Damages +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 11 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

The Durham Company Limited (trading as Max Recycle)

Claimant

Durham County Council

Defendant

Procedural Posture

Commercial/competition Claim / Application for Strike Out And/or Summary Judgment

Legal Issues

  1. 1 Whether the Council's provision of commercial waste collection services constitutes unlawful State aid under Article 107(1) TFEU
  2. 2 Whether the Claimant has a real prospect of establishing a right to damages for breach of Article 108(3) TFEU
  3. 3 Whether the claim for declaratory and injunctive relief should be struck out or summarily dismissed

Ratio Decidendi

The Claimant's particulars of claim do not adequately plead the necessary elements for a damages claim under EU law, specifically the requirement of a sufficiently serious breach (the second Francovich condition). The claim for damages is unsustainable as a matter of law. The Council's late reliance on the selectivity criterion for State aid was procedurally unfair and not permitted at this stage. The claims for declaratory and injunctive relief are not struck out, as the underlying State aid issue is not suitable for summary determination given the ongoing European Commission investigation and the factual disputes. The Claimant is refused permission to amend its claim to plead a direct...

Court Disposition

Claim for damages struck out; permission to amend to plead direct English law breach of statutory duty refused; claims for declaratory and injunctive relief not struck out or summarily dismissed.

Orders

  • Claim for damages struck out under CPR r. 3.4(2)(a) and/or summary judgment granted under CPR r. 24.2(a)(i)
  • Permission to amend particulars of claim to plead direct English law breach of statutory duty refused