A waste firm has been given to green light to sue the Scottish Government for £160 million over its failed bottle recycling scheme.
Court of Session judge Lord Clark ruled that Biffa Waste Services Limited’s case against the Government can go ahead.
Biffra wants to recoup the money it lost from investing in the scheme and the loss of profit it suffered.
Shoppers would have been charged a deposit when buying drinks in cans and bottles under the scheme. The money would be repaid when the containers were returned.
It was axed after the UK Government refused for it to be excluded from the Internal Market Act, which meant glass could not be included.
The Scottish Government has been accused of misrepresenting the scheme when it assured Biffa it would go ahead.
It is understood that Biffa relied on personal assurances from Green party co-leader Lorna Slater as a reason to invest £55m in vehicles and equipment to prepare for the DRS, before she scrapped it in June 2023.
Slater was then minister for green skills, circular economy and biodiversity. The Greens were booted out of the Scottish Government last year.
Lord Clark said: “On the first part of the claim, for the pursuer to succeed at the proof the court will have to be satisfied on the following points: there was an assumption of responsibility; the duty was not inconsistent with the statutory powers and duties of the defenders; the pursuer relied, and reasonably relied, upon the defenders’ conduct; the breaches of duty occurred; and the loss was caused by the alleged breaches.
“On the alternative case on negligent misrepresentation, the pursuer mainly requires to prove that the pursuer’s contention on the proper interpretation of the letter, when viewed in its full context, is correct, and that the pursuer relied, and reasonably relied, upon it, causing the loss of costs.
“Questions also remain in play about the amount of loss on costs and profit which the pursuer can establish.”
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