Council pays waste firm £10m after legal dispute.
After a “protracted” commercial dispute, Leicester City Council settled a court case with waste firm Biffa, paying millions of pounds.
The corporation has a 25-year contract with the council that began in 2003 to collect and dispose of domestic garbage from 120,000 houses, as well as run two recycling plants in the city.
The council stated that it could not publish details of the disagreement due to the terms of the legal agreement with Biffa, but confirmed on Tuesday that it had paid the firm £10 million to settle the lawsuit.
Biffa stated that the disagreement had been “satisfactorily resolved” and that it hoped to continue with the contract until it expired in 2028.
A city council spokesperson stated: “The Biffa Leicester trash contract has been in existence since 2003 and is worth £405 million over its lifetime.
“A protracted commercial disagreement occurred, which was eventually concluded with a £10 million payment to Biffa following mediation, which is less than 2.5% of the contract value. “There have been no disruptions to waste collections in Leicester during this period.” A Biffa representative stated:
“A dispute arose between Biffa and Leicester City Council over the long-term waste management contract, which began in 2003 and is set to expire in 2028.”
“The matter was effectively resolved following mediation, with the council paying Biffa £10 million under the provisions of a settlement agreement.
“Biffa looks forward to continuing to provide the city of Leicester with high quality waste management services until the end of the contract.” Neither the council nor Biffa have responded more.
“The dispute has been satisfactorily resolved following mediation, with the council paying to Biffa £10m under the terms of a settlement agreement.
“Biffa looks forward to continuing to provide the city of Leicester with high quality waste management services until the end of the contract.” Neither the council nor Biffa have responded more.
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