Landmore Ltd v Shanks Dumfries & Galloway Ltd [2011] ScotCS CSOH_100 (16 June 2011)

Landmore Ltd v Shanks Dumfries & Galloway Ltd [2011] ScotCS CSOH_100 (16 June 2011)

The court held that the soil and inert material brought onto the premises for capping and restoration was 'inert waste' within the natural and ordinary meaning of the lease, as it was discarded by the original holder (R & D Construction) and not subjected to any process before entry. The material's subsequent use by the defenders did not alter its status at the point of entry. The lease was to be interpreted in light of the commercial context and the regulatory background, including the EU Waste Framework Directive, which supports the view that material discarded by its holder is waste, even if it is later put to use.

Citation
[2011] ScotCS CSOH_100
Parties
Pursuer: Landmore Limited; Defender: Shanks Dumfries and Galloway Limited
Jurisdiction
Scotland
Judgment Date
16 June 2011
Procedural Posture
Commercial Lease Dispute / Proof Before Answer, Limited to Declarator on Classification of Inert Waste Under Lease
Outcome
Declarator granted in favour of pursuers
Legal Topics
Interpretation of Commercial Leases, Definition of Waste Under EU and Domestic Law, Royalty Rent Calculation, Landfill Site Operations
Contract Law Property Law Environmental Law Interpretation of Commercial Leases Definition of Waste Under EU and Domestic Law Royalty Rent Calculation Landfill Site Operations

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Parties

Landmore Limited

Pursuer

Shanks Dumfries and Galloway Limited

Defender

Procedural Posture

Commercial Lease Dispute / Proof Before Answer, Limited to Declarator on Classification of Inert Waste Under Lease

Legal Issues

  1. 1 Whether soil and inert material used for capping and restoration at a landfill site constitutes 'inert waste' under the lease for royalty rent purposes
  2. 2 Proper construction of 'inert waste' in the context of a commercial lease

Ratio Decidendi

The court held that the soil and inert material brought onto the premises for capping and restoration was 'inert waste' within the natural and ordinary meaning of the lease, as it was discarded by the original holder (R & D Construction) and not subjected to any process before entry. The material's subsequent use by the defenders did not alter its status at the point of entry. The lease was to be interpreted in light of the commercial context and the regulatory background, including the EU Waste Framework Directive, which supports the view that material discarded by its holder is waste, even if it is later put to use.

Court Disposition

Declarator granted in favour of pursuers

Orders

  • Court declares that the soil and inert material used for capping and restoration at the landfill site is 'inert waste' for the purposes of Clause 2(3) of the lease.