Last updated 13:06, Saturday, 04 October 2008

A £4.4M COMPENSATION claim against Cumbrian law firm Baines Wilson, arising out of the foot and mouth outbreak in 2001, has been settled.

Baines Wilson acted for Cumbria Waste Management and Lakeland Waste Management, drawing up a contract with the Department for Environment, Food and Rural Affairs (Defra).

The waste companies disposed of thousands of animal carcasses as foot and mouth hit the county.

But after the outbreak Defra refused to settle their combined £6.2m bill.

The companies eventually received £5.3m when Defra agreed to mediation. They then lodged a £4.41m claim against Carlisle-based Baines Wilson, alleging negligence over the way the Defra contract was drawn up.

Cumbria Waste Management and Baines Wilson issued a joint statement saying that the matter had now been resolved to the satisfaction of both parties.

Neither side will say how much, if anything, Baines Wilson paid in settlement.

Cumbria Waste Management, owned by Cumbria County Council, operates a landfill site at Distington.

The waste firms argued their dispute with Defra arose “entirely” as a result of Baines Wilson’s negligence.

Baines Wilson denied the allegations.

Next month, Mitchells auction mart in Cockermouth will go back to court over its claim that Defra owes it thousands of pounds for work done during the foot and mouth crisis.

Mitchells sued the Government in July for £119,000 which it claims is owed by Defra in unpaid fees and interest for valuations of condemned flocks back in 2001.

A judge called for a more detailed hearing, which will be held in Manchester on October 21.