Claimant managing and operating local authority site – Site providing facilities for disposal of household waste – Defendant local authority contending that claimant allowing deposit of trade waste at site – Defendant terminating contract – Claimant seeking declaration that contract still in force – Whether breach by claimant – Claim dismissed
The defendant local authority were under a statutory duty to provide facilities for the disposal of household waste. In 1998 they entered into an agreement with the claimant, a waste management company, under which the claimant was to manage and operate a site for the disposal of such waste. The contract provided that the claimant was to co-operate with the authority in actively discouraging the use of the site for the disposal of trade waste.
In November 2000 the defendants terminated the contract on the ground that the claimant had allowed unacceptable amounts of trade waste to be deposited at the site and had not taken sufficient steps to discourage it. The defendants contended that the contract imposed a strict obligation upon the claimant, and that the disposal of trade waste was outside the scope of the services to be provided. The claimant contended that it was not under a strict obligation to prevent the deposit of trade waste and that it was not in breach of contract. It sought a declaration that the contract remained in force.
Held: The claim was dismissed.
The contract did not contain an absolute obligation to prevent trade-waste disposal on the site. Looking at the contract as a whole, the obligation upon the claimant was one of taking reasonable steps or using its best endeavors to discourage use of the site for trade waste. Such a construction conformed with the everyday practice and reality of the waste-disposal industry. However, on the evidence of the instant case, the claimant had fallen far short of its contractual obligations and the defendants were justified in terminating the contract.
Timothy Higginson (instructed by Mishcon de Reya) appeared for the claimant; Jonathan Seitler (instructed by Sharpe Pritchard, as agent for the solicitor to the Borough and County of the Town of Poole) appeared for the defendants.
Sarah Addenbrooke, barrister
