Thames Water attempted to force Liberal Democrat MP Charlie Maynard to pay its legal costs of up to £1,400 per hour after he represented the public interest in court, a move he described as “retaliation” for his push to bring the utility under government control. The UK’s highest court rejected the demand this week.
Maynard had been granted unusual permission to argue against an investor bailout for the debt-laden company, which serves 16 million customers and carries net debts of £17bn. He appealed the bailout approval, advocating for temporary government control. Thames Water’s barristers argued he should be personally liable for costs to “deter” future appeals to the Supreme Court.
The utility’s lenders, including hedge funds Elliott Investment Management and Silver Point Capital, backed the cost claim. Maynard said he faced a potentially ruinous bill but felt the company was punishing him for arguing that Thames Water should be placed in a special administration regime (SAR) to protect billpayers.
“What is the largest water company in the country doing trying to run an MP off the road?” Maynard asked. Campaign group We Own It called the behaviour “disgusting” and evidence that the government should take Thames Water into special administration immediately.
Thames Water argued in legal submissions that Maynard had no reason not to pay, saying he had “a full opportunity to ventilate his concerns” in lower courts. The company claimed his application aimed to “disrupt” the restructuring in pursuit of a “political aim”. People close to the company denied retaliation, saying arguments were based on points of law.
While Thames Water’s total legal costs were not detailed, a previous stage at the Court of Appeal incurred £2.3m in fees, including £1,400 per hour for Linklaters partners and £812,000 for barristers. The company spends up to £15m a month on legal and advisory services.
