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PRACTICE NOTES
This Practice Note describes the extent of a distributor's liabilities towards third parties, including where it may incur primary product liability in place of the manufacturer for the goods it distributes. Distributor and customer A distributor buys products from a manufacturer and resells them on its own behalf. The contract and the relationship is between the end-user and the distributor, rather than the manufacturer, and it is the distributor to whom the customer will look for product maintenance or redress for defective products. Product liability Notwithstanding the distributor's contractual liability to customers for defective products, UK law holds manufacturers and others involved in the distribution chain strictly liable for damage or injury to third parties caused by product defects under Part I, ss 1–9 of the Consumer Protection Act 1987 (CPA 1987). For this reason, manufacturers will want to restrict distributors from admitting liability in respect of defective products without the manufacturer's prior approval. Distributors may be liable under CPA 1987, s 2 where: • they are the original importer of the product into the UK from
NEWS
The District Court of Amsterdam has ruled that the Dutch airline KLM has misled customers in its advertising and carbon offsetting marketing. The campaign groups Fossielvrij Netherlands and Reclame Fossielvrij filed the greenwashing lawsuit against KLM, arguing that the airline’s advertising gave a false impression that they were tackling climate change. The judgment sets a significant legal precedent which will impact airlines worldwide, and companies more generally who may engage in greenwashing advertising. The judgment urges companies to compete fairly for public support and consumer attention when acting to prevent the climate emergency.
PRACTICE NOTES
Note that additional commentary on the issues discussed in this Practice Note in the context of the regulation, consenting and incentivisation of the net zero energy transition is available in the following textbook that we have published: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. This Practice Note explores the contractual framework for district heating network projects in England and Wales. The topics covered are: • at a high-level, what district heating networks are • what the key project contracts are for such district heating network projects • what the common issues are arising in the drafting and negotiation of those project contracts, and • guidance available on the procurement and operation of district heating network projects In Scotland, the Heat Networks (Scotland) Act 2021 (and subsequent secondary legislation) introduced a separate regulatory system for heat networks. The Scottish regulatory system for district heating networks is outside the scope of this Practice Note.
PRACTICE NOTES
This Practice Note examines the legal and regulatory regime applicable to district heating networks in England and Wales. The topics covered are: • at a high-level, what district heating networks are • the legal basis underpinning the regulatory regime for DHN • the regulatory regime for DHN introduced under the Energy Act 2023 (EnA 2023), Pt 8, as supplemented by secondary legislation and the Office of Gas and Electricity Markets’ (Ofgem’s) DHN authorisation conditions • the meaning and role of heat network zones in the regulation of DHN, and • the key UK government subsidy support schemes available to support the deployment of DHN This Practice Note does not explore the regulation of the centralised generation system that supplies the hot water for a DHN scheme, which would be specific to the generation type (for example, the electricity licensing regime where the generation source was a combined heat and power plant (see Practice Note: Great Britain electricity generation,
NEWS
Dispute Resolution analysis: The High Court considered an appeal and a cross-appeal against a decision of District Judge Jenkinson, dated 6 February 2019, whereby he recused himself from dealing with part of an ongoing substantive, detailed costs assessment, but not all of it. The appellant said that he should have recused himself from all of it, including the judgments he had already given on some aspects, so that they should be set aside. The respondent said, by way of cross-appeal, that not only should the district judge not have recused himself from the other parts of the assessment, he should not have recused himself at all. And he should continue to deal with all aspects of the assessment going forwards, or in the alternative, the recusal should be limited to the one matter identified by the District Judge. The respondent also contended in the alternative, that the appellant had, in any event, waived any right to seek any recusal. Written by Clifford Woodroffe, partner, at Lee Bolton Monier-Williams.
GLOSSARY
The lower tier in two-tier authorities, responsible for delivery of local services such as housing, planning and waste collection. They are established by the Local Government Act 1972 Sch 1, Pt I, Sch.3 and the English Non-metropolitan Districts (Definition) Order 1972 (SI 1972/2039). 'District', without more, means, in relation to England, a metropolitan district or a non-metropolitan district: Local Government Act 1972 (LGA 1972), s 270(1); 'non- metropolitan district' means any district other than a metropolitan district: LGA 1972, s 270(2).
PRACTICE NOTES
What is district heating (DH)? DH, also known as heat networks, involves the provision of hot water or steam through a pipe network for use in several residential, commercial, or mixed use blocks for the purpose of space heating and hot water. This method of providing heat can be more efficient, cost effective, secure, and of a lower carbon intensity than traditional means of generating heat within individual units such as through gas boilers or electric heating. For more information on the evolving contractual and regulatory regimes surrounding DH networks, see Practice Notes: District Heating Networks in England and Wales: The evolving contractual regime and District Heating Networks in England and Wales: The evolving regulatory regime. Description of DH system A DH system normally involves four main components: • energy centre / heat source • heat network • heat interface unit • heat user The energy centre is the location where heat is generated. Heat can be a by-product sourced from power generating plants, industrial processes, or from dedicated combined heat and power units and dedicated
NEWS
Arbitration analysis: On 10 November 2025, the England and Wales High Court delivered an important decision in OperaFund Eco-Invest & Schwab Holding v Spain, holding that an ICSID award rendered under the Energy Charter Treaty (ECT) cannot be assigned to a third party. These novel findings on assignability may add another layer of complexity to the enforcement of ICSID awards in England, a jurisdiction which has shown itself amenable to ICSID enforcement actions (including against Spain), as well as to the secondary market for investment in the recovery of arbitration awards. In this news analysis, the Freshfields team consider the background to the High Court decision, its key findings and the potential implications for award creditors, assignees and states.
NEWS
Ireland—Commercial analysis: This article, written by Brónagh Maher of Matheson LLP, examines the ongoing EU-US debate on environmental, social and governance (ESG) regulation and considers its implications for the EU’s global competitiveness.
GLOSSARY
Holding a range of assets to reduce risk.
PRACTICE NOTES
This Practice Note considers agricultural tenants’ rights to diversify or use the let subjects for alternative business uses both under 1991 Act Tenancies and 2003 Act Tenancies, the extent of the right to diversify and some of the consequences of diversification. Diversification at common law Diversification, ie the use of a holding for a non-agricultural purpose not sanctioned by the lease, would at common law be a breach of the lease based on the principle of: inversion of possession, and may in many cases, in addition, incur a conventional irritancy. For further information, see: Diversification: Stair Memorial Encyclopaedia [107K]. Statutory Diversification Part 3 of the Agricultural Holdings (Scotland) Act 2003 (AH(S)A 2003) gives agricultural tenants the right to diversify by using the land for a non-agricultural purpose. The right to diversify applies to 1991 Act Tenancies and to 2003 Act Tenancies other than short limited duration tenancies (SLDTs). While diversification may at common law be an inversion of possession, and alter the character of the lease from being that of an agricultural holding
GLOSSARY
A DGF invests in a variety of different assets classes within a single fund.