Feed-in Tariff appeal could clear the way for solar industry damages
claims
by ClickGreen staff. Published Sun 29 Jan 2012 11:55, Last updated:
2012-01-29
Supreme Court to decide outcome of Feed-in Tariffs
Government Ministers have been warned they have passed the point of no
return with their appeal bid to the Supreme Court as last week’s ruling
has wider implications for other Whitehall departments.
The Department for Energy and Climate Change has found itself compelled
to challenge the decision of three Appeal Court judges who upheld an
original High Court ruling that its rushed cuts to the Feed-in Tariff
were unlawful.
However, an unsuccessful final appeal could clear the way for the UK’s
solar industry to argue for damages and loss of earnings with a claim
of tort that Secretary of State Chris Huhne failed in his duty of care.
One senior lawyer said: “It is usual to sue another party under
contract law but there is no contract here, only a legislative subsidy.
However, it may be possible to bring a successful court action against
DECC for damages with a claim of tort.
“A stampede to the courts may not be in the industry’s best interests
currently as it may nudge the
Supreme Court towards allowing the appeal if they believe the
Government is facing the prospect of a huge raft of damages claims.”
Many in the sector had criticised DECC’s decision to apply direct to
the Supreme Court after its legal team were denied leave to appeal on
Wednesday. Some suggested it was a political stunt to kick the issue
into the long grass, while the new contingency date of March 3 nears.
However, according to the lawyer, there is no going back for Energy
Ministers as the Court of Appeal ruling touched on issues of
constitutional law and may have laid down a precedent with far-reaching
consequences for other departments.
The lawyer told GreenWeek the DECC legal team are well within their
rights to seek a Supreme Court appeal, and added: “The problem is the
Court of Appeal judgement was based on a point of constitutional law.
The appeal court judges may have laid down a precedent by ruling on
whether the Secretary of State acted within his powers – this has much
wider implications for the Government and decision-makers.”
The full article of this story can be found on GreenWeek at:
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