A judge at Scotland's highest civil court has dismissed a multi-million-pound compensation claim brought by the waste management firm Biffa against the Scottish government over the failure of its flagship recycling initiative.
The Failed £50m Claim and Court Ruling
Biffa had been seeking £51.4 million in damages at the Court of Session, arguing it incurred significant losses after investing in preparation for the Scottish Deposit Return Scheme (DRS). The scheme, which was scheduled to launch in August 2023, ultimately collapsed after the UK government refused a crucial exemption.
In a ruling published on Friday 16 January 2026, Lord Sandison found against the company. He stated the court's role was not to assign political blame but to examine specific legal questions of duty of care and breach. Lord Sandison concluded that Biffa's case "fails in fact and law".
The Crucial 'Comfort Letter' and Legal Arguments
Central to Biffa's claim was a letter sent in May 2022 by the then Circular Economy Minister, Scottish Green MSP Lorna Slater. The company argued this letter provided assurances about the scheme's viability but negligently failed to mention the need for an exemption from the UK Internal Market Act (IMA).
This exemption was required for Holyrood to include glass bottles in its plans. When the then Scottish Secretary, Lord Alister Jack, refused to grant it, the scheme became unworkable and was shelved.
However, Lord Sandison ruled he did "not accept" that a reasonable person would have read Ms Slater's letter as a guarantee that the scheme would proceed without risk. He found the Scottish government "did not breach the duty incumbent on them" and that the statements in the letter were true and accurate.
Reactions and Lasting Consequences
Following the verdict, a spokesperson for Biffa said the company noted the decision and was "reviewing our position with our legal advisers". The Scottish government declined to comment, citing ongoing legal proceedings.
A Scottish Green spokesperson framed the DRS saga as showing "the worst of Westminster", arguing that the scheme, approved by MSPs, would have tackled litter and boosted recycling rates. The political fallout from the scheme's failure continues to resonate, highlighting tensions between the devolved and UK governments post-Brexit.
The ruling brings a legal conclusion to one chapter of the protracted dispute, but the environmental and political debate over how to implement an effective deposit return system across the UK remains unresolved.
