Scottish Government Wins Legal Battle: £50 Million Claim Over Failed Bottle Scheme Dismissed

A Scottish court has dismissed a staggering £50 million lawsuit from waste management firm Biffa, concerning the failed deposit return scheme (DRS) initiated by the Scottish government. The case hinged on a letter from former Scottish Greens co-leader Lorna Slater, which Biffa interpreted as a guarantee that the DRS would proceed, prompting them to invest heavily in the initiative. However, the court found such an interpretation to be sheer ”wishful thinking”, and judicial officer Lord Sandison described their claims as attempts to turn ”base metal into gold”.

The troubled scheme, originally planned to charge consumers an extra 20p for single-use bottles and cans, faced obstacles leading to its abandonment in June 2023 after a standoff with the UK government regarding exemptions under the Internal Market Act.

Biffa pointed out that Slater’s 2022 letter implied that all necessary actions for the DRS to succeed had been taken, prompting them to sign a 10-year contract with the now-defunct Circularity Scotland. However, the court ruling found that a reasonable person could not have assumed that the letter conferred any legislative takeaway regarding the scheme’s viability. The decision also accounted for the Scottish government’s prior awareness of potential legal complications as early as 2021.

Subsequently, the court rejected Biffa’s allegations of deception, affirming that if there were uncertainties, Biffa should have sought further clarifications, which they did not. The judgement is seen as a win for the Scottish government, amidst claims from the Scottish Greens highlighting Westminster’s influence over local decisions. As a next step, Biffa is now consulting with its legal advisors on the implications of this ruling.