EWC Awarded Damages in Landmark Waste Contract Case

In a landmark trial, waste management and disposal specialist, Environmental Waste Controls Limited (EWC), has won a case against Lancashire County Council (LCC) at The High Court, Manchester District Registry.

The case relates to an invitation to tender issued by LCC, the waste disposal authority for the administrative area of Lancashire, to operate and manage a network of household waste recycling centres (“HWRCs”) within its area on a three-year contract, with a two-year extension. Following the announcement that the contract was to be awarded to SITA, after an ‘open-procedure’ process, EWC, represented by law firm Hill Dickinson, issued a claim in the High Court against LCC for damages under the Public Contracts Regulations 2006 in relation to a waste contract for the Lancashire area.

EWC’s claim was that its tender was some £3.35 million cheaper than that of the winner of the tender and was more environmentally friendly and guaranteed a higher percentage recycling rate than any other bidder.

Following the trial, His Honour Judge Hegarty QC found that there had been a bias against EWC in the tender process such to award damages to the claimant.

Jonathan Berkson, head of Liverpool’s commercial litigation team at Hill Dickinson, commented: “When a more expensive tender is chosen, questions are always raised over the tender process. This is a landmark decision for EWC and sends out a clear signal to Councils that tender processes must be transparent and judged on the criteria set out within the tender”.

Bill Edwards, chairman of EWC, commented: “ From the outset, all we have asked that each operator be treated equally. The very size and location of this contract made it a significant opportunity for EWC and would have safeguarded the future of our 450-strong workforce. It’s been a two year battle, but we’re delighted to have been vindicated.”

EWC is a company specialising in waste management and recycling, operating numerous Household Waste Recycling Centres and MRF’s, across the UK for local authorities and blue chip, environmentally responsible, commercial organisations such as Hilton hotels, Hammonds furniture, Howdens Furniture, Barcelo Hotels, Ramada Jarvis Hotels, Liverpool One leisure and shopping complex, DHL, Lidl, Geraud Markets and Inn Shops.

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