Food processors warned of litigious residents

Food manufacturers with noisy or smelly plants should be alert to the threat of civil claims launched by litigious residents near their factories, Eversheds has warned.

Louise Howarth, litigation associate at Eversheds, said: “Some of our food manufacturing clients have been subject to private nuisance claims, and we are seeing a general increase in such claims being made by groups of local residents. From a risk management point of view, companies should think about proactively managing relationships with their neighbours, to avoid matters escalating to the stage that a claim is threatened.

Manufacturers found guilty of emitting excessive noise or odour can be prosecuted and fined by local authorities or the Environment Agency, she said. But increasingly, residents were also seeking damages through civil action in large groups. “We’re seeing group claims with anything up to 40 people involved. And if damages are claimed in the region of £100-2,000 per claimant, per year that the nuisance was experienced, there is potentially a lot of money involved,” said Howarth.
Claimant law firms are also able to offer attractive funding options for potential claimants which can mean claimant groups can quickly grow in size she added. “Whereas in the past, two or three people might have complained about something, now claimant firms will pick up on this and get 30 or 40 people together very quickly.”
In the worst case scenario, if the noise or smell is an ongoing problem, claimant groups might try to get an injunction to stop the nuisance - which could theoretically mean a site might have to close down if the application was successful, she added.
A private nuisance in this context is an activity or condition that unreasonably interferes with the use and enjoyment of neighbouring privately owned property. This might be excessive noise, unpleasant odours or vibrations.
While many larger firms were typically obliged to consider noise and odour generated by their plants in the course of applying for environmental permits, smaller firms may be less aware of the potential risks they were taking, said Howarth. “This is a risk management issue that all food manufacturers should consider.”