Energy firm to pay fire compensation
The tenants and owners of the properties brought an action against Scottish Power, the electricity suppliers. The decision by the court was in favour of the claimants and clarifies when a failure to comply with a duty imposed by legislation can give rise to liability for damages.
The issue before the court was whether or not the claimants were entitled to rely upon the Electricity Supply Regulations 1988 as a basis for an action for damages or compensation. The regulations place various duties on electricity suppliers, including an obligation to ensure that works are installed and maintained so as to prevent danger (so far as is reasonably practicable).
In defending the claim, Scottish Power adopted what may be described as a traditional approach to statutory interpretation. Relying upon the earlier case of X (Minors) V Bedfordshire County Council, they argued that the regulations did not give rise to liability for compensation because they did not meet the relevant test. The essential requirements of the test are that:
The legislation is for the benefit of a particular class of persons rather than the general public.
Parliament intended to confer on members of that class a private right of action for breach of the statutory duty.
In response the claimants argued, among other things, that the only rule imposed by previous case law was that the court should look for the true intention of Parliament by construing the particular legislative terms in question.
For a fuller explanation of the decision and its implications, visit www.lexology.com.