Buckinghamshire Council v FCC Buckinghamshire Limited

Buckinghamshire Council v FCC Buckinghamshire Limited

Deductible costs under the Project Agreement are limited to direct costs specifically and solely related to generating TPI additional to that modelled in the Base Case, and not costs of handling or processing TPW at the Facilities. Unitary charge income from Luton, apportioned by tonnage sent to Greatmoor,...

Source-derived case information.

Parties
Claimant: Buckinghamshire Council; Defendant: FCC Buckinghamshire Limited
Jurisdiction
England and Wales
Judgment Date
21 June 2024
Procedural Posture
Commercial Contract Dispute / Post Trial Judgment
Outcome
Claimant succeeds in principal claims regarding deductible costs, Luton unitary charge, management fees, and metals income. FCCB's broader deductible costs claim rejected. No declaration granted regarding disclosure obligations.
Legal Topics
Interpretation of Contract Terms, Deductible Costs, Third Party Income, Waste Management Agreements, Profit Sharing, Disclosure Obligations
Contract Law Public Procurement Commercial Law Interpretation of Contract Terms Deductible Costs Third Party Income Waste Management Agreements Profit Sharing +1 more

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Summary, issues, holding and outcome

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Parties

Buckinghamshire Council

Claimant

FCC Buckinghamshire Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Post Trial Judgment

Legal Issues

  1. 1 Proper interpretation of deductible costs under the Project Agreement
  2. 2 Scope of Third Party Income (TPI) definition
  3. 3 Entitlement to share in unitary charge income from Luton contract

Ratio Decidendi

Deductible costs under the Project Agreement are limited to direct costs specifically and solely related to generating TPI additional to that modelled in the Base Case, and not costs of handling or processing TPW at the Facilities. Unitary charge income from Luton, apportioned by tonnage sent to Greatmoor, constitutes TPI. Management fees and metals income are included as TPI, subject to proper deduction of directly incurred costs. FCCB's disclosure obligations are defined by clauses 99 and 111, but no further declaration is warranted.

Court Disposition

Claimant succeeds in principal claims regarding deductible costs, Luton unitary charge, management fees, and metals income. FCCB's broader deductible costs claim rejected. No declaration granted regarding disclosure obligations.

Orders

  • FCCB to recalculate and pay BC its 75% share of excess TPI for contract years 2016-17 to 2022-23, applying the court's interpretation of deductible costs.
  • Unitary charge income from Luton to be apportioned and included as TPI; deductible costs to be determined in subsequent trial.