A test-case dispute over the entitlement of local authorities to seek damages when independent contractors’ road repairs continue for longer than expected is to be heard in the High Court later this year. Gray J has today paved the way for Leicestershire County Council to seek more than £100,000 in damages over delayed under-street works to gas pipes.
The case is of great interest to highway authorities and contractors across the country, as a number of other cases involving many millions of pounds could be affected by the outcome.
Gray J has decided two preliminary issues, relating to the interpretation of the 2001 Street Works (Charges for Unreasonably Prolonged Occupation of the Highway) Regulations, in favour of Leicestershire County Council, giving them the green light to pursue their £111,500 claim against Transco plc.
He said: “It is thought that this is the first occasion of substance where the court has had to consider section 74 of the 1991 New Roads and Street Works Act and the 2001 Regulations. Many other cases involving many millions of pounds await the outcome of the present proceedings.”
Leicestershire County Council v Transco plc Queen’s Bench Division (Gray J) 7 April 2003.
References: PLS News 8/4/03
