Buckinghamshire Council v FCC Buckinghamshire Limited

Buckinghamshire Council v FCC Buckinghamshire Limited

The Court upheld the Judge's interpretation that only costs specifically and solely related to the generation of additional Third Party Income, and not general overheads or apportioned costs, are deductible. The Luton BC unitary charge proportionate to waste sent to Greatmoor is Third Party Income. Haulage costs are barred by proviso (c) as they constitute handling or processing of Third Party Waste, regardless of location.

Parties
Claimant/respondent/appellant: Buckinghamshire Council; Defendant/appellant/respondent: FCC Buckinghamshire Limited
Jurisdiction
England and Wales
Judgment Date
18 July 2025
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
FCCB's appeal dismissed; ground 3 of Council's appeal allowed.
Legal Topics
Interpretation of Contract Terms, Deductibility of Costs, Income Sharing Mechanisms, Burden of Proof, Public Private Partnership Agreements
Contract Law Public Procurement Commercial Law Interpretation of Contract Terms Deductibility of Costs Income Sharing Mechanisms Burden of Proof Public Private Partnership Agreements

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Parties

Buckinghamshire Council

Claimant/respondent/appellant

FCC Buckinghamshire Limited

Defendant/appellant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether FCCB was entitled to deduct various costs from Third Party Income before sharing with the Council
  2. 2 Whether income received from Luton Borough Council was Third Party Income under the Project Agreement
  3. 3 Proper interpretation of 'directly incurred' costs and provisos in the Project Agreement

Ratio Decidendi

The Court upheld the Judge's interpretation that only costs specifically and solely related to the generation of additional Third Party Income, and not general overheads or apportioned costs, are deductible. The Luton BC unitary charge proportionate to waste sent to Greatmoor is Third Party Income. Haulage costs are barred by proviso (c) as they constitute handling or processing of Third Party Waste, regardless of location.

Court Disposition

FCCB's appeal dismissed; ground 3 of Council's appeal allowed.

Orders

  • FCCB not entitled to deduct costs except haulage; haulage deductions barred by proviso (c)
  • Income from Luton BC unitary charge proportionate to waste sent to Greatmoor constitutes Third Party Income