UNITED KINGDOM-AUCTIONEERS WINS FOOT AND MOUTH CASE.
COCKERMOUTH’S Mitchells auction mart has received £190,000 from the Government after a four-year legal battle over unpaid foot and mouth fees.
Mitchells claimed that it was owed £69,000 for valuations of condemned sheep flocks by its staff during the 2001 crisis.
The settlement pays the original claim plus interest and a contribution towards costs.
The company argued that the Department for Environment, Food and Rural Affairs, then called MAFF, had agreed to pay for each flock valuation, while the Government claimed it had imposed a £1,500-per-day cap on each valuer.
Many Cumbrian valuers started work unaware what fee they would be paid.
During the court case, Defra acknowledged that its fees should have been published at the time.
Mitchells conducted more than 400 valuations and was paid £231,000 for the work.
Valuations were essential before flocks were culled so the Government knew how much compensation to pay farmers.
The judge in the case failed to reach a decision after a Manchester High Court hearing in July last year. More detailed proceedings were due to begin when the out-of-court settlement was agreed.
The case was settled after Mitchells chairman Bob Watson approached Defra.
He said: "I think Mitchells would have progressed more as a company had we not had to divert our attention to this over a number of years.
"Big government departments are better capable of dealing with lengthy lawsuits than small companies.
"Mitchells believed they were right and when you believe you are right and the cause is just, then you have to follow that cause."
In December, Mitchells issued more shares to raise cash and pay off some of its debt. It had delayed the offer of a second round of shares pending an agreement on the settlement.
The board will consider whether to continue with the second round at a meeting on March 30.
Mr Watson said the company was performing strongly thanks to higher livestock prices.
He added: "We are also seeing that people are being more careful with their money and the household goods sales are being better attended and turnover has increased."