The Court of Appeal has backed a High Court ruling that Eastern Counties Leather plc (ECL) was entitled to an indemnity from Eastern Counties Leather Group Ltd (ECLG) in respect of water pollution at a Sawston tanning site, south of Cambridge.
The dispute over who was liable to pay for clean-up costs followed complaints that high levels of perchloroethene and trichloroethene, chemicals used in treatment of animals skins, were found in a borehole near the tannery.
John Martin QC, counsel for ECLG, claimed that ECLG was entitled to be indemnified by ECL under the terms of a 1994 pollution indemnity agreement between the two companies.
Dismissing the challenge, Buxton LJ held that he was satisfied that ECL’s construction of the agreement was correct, and that ECL had not breached the agreement terms.
Eastern Counties Leather plc v Eastern Counties Leather Group Ltd Court of Appeal (Simon Brown, Buxton and Carnworth) 30 October 2002.
John Martin QC and Nicholas Leviseur (instructed by Lester Aldridge, of Bournemouth) appeared for the appellant; Sonia Proudman QC and Andrew Francis (instructed by Taylor Vinters, of Cambridge) appeared for the respondent.
PLS News 31/10/02
