Landfill Sites | Ownership of Waste Property
The recent case of Howells v Newport City Council [2025] ECCH 22 highlights that waste collected by a local authority immediately comes under the ownership of that authority. Consequently, the authority bears no obligation to return any part of waste, whatever circumstances may subsequently arise.
This harsh reality was recently encountered by James Howells who sought to recover a Hard Drive which held the private key to Bitcoin, which he alleged is valued at over six hundred million pounds.
The Hard Drive was inadvertently disposed of by a former partner of James Howells to a landfill site managed by Newport City Council. Over a considerable period of time, James Howells sought permission to enter the landfill site and excavate the area in which he believed that the Hard Drive would be located.
John Veale of KANGS outlines the circumstances.
The Circumstances
Whilst gathering items for disposal at his home, James Howells inadvertently included a Hard Drive which, amongst other detail, contained a key essential for accessing a Bitcoin Wallet.
The material for disposal was delivered by his former partner to a landfill site managed by Newport City Council where it was processed and disposed of as landfill waste in the usual manner.
After realising his mistake, James Howells attempted to retrieve the device and subsequently initiated a series of legal actions seeking to recover the Hard Drive.
The Dispute
James Howell sought permission to excavate the relevant area of the landfill site, supported by a team of experts to conduct the search, at his own expense, in an attempt to recover the Hard Drive,
He maintained that:
- he retained ownership of the Hard Drive despite its mistaken disposal,
- the Hard Drive had been deposited at the landfill site by another, his partner, in error,
- the council had no lawful claim to retain the Hard Drive,
- the council held the Hard Drive on constructive trust, asserting that it would be unconscionable for the council to retain it thereby denying him access to the Bitcoin,
- If not allowed to conduct a search, he was entitled to compensation equivalent to the value of the Bitcoin which could only be accessed through the lost Hard Drive.
Newport City Council maintained that:
- by virtue of Section 14(6)(c) of the Control of Pollution Act 1974, items deposited at council-managed landfill sites become the council’s property,
- ownership of the Hard Drive immediately passed to the council upon its disposal, extinguishing any proprietary rights James Howell may have had.
- excavation of part of the landfill would contravene its environmental responsibilities and could set an undesirable precedent for waste management,
- the alleged constructive trust could not exist as there was no evidence of unconscionable behaviour, the statutory ownership prevented scope for any equitable remedies and the significant delay in bringing the claim further weakened any merit which may have existed.
The Court Judgment
The Court confirmed that under Section 14(6)(c) of the Control of Pollution Act 1974, items deposited at a council-managed landfill automatically become the property of the council. As a result, Newport City Council became the legal owner of the hard drive when it was discarded.
The Court stated:
"anything delivered to the authority by another person in the course of using the facilities shall belong to the authority and may be dealt with accordingly.
What was delivered to the landfill was the Hard Drive. The [Council’s] simple contention is this: it is [James’ Howells] case that the Hard Drive was delivered to the Site by “another person”, namely his partner at the time; she delivered it “in the course of using the facilities”; and, in those circumstances, the Hard Drive belongs to the [Council] and [James Howells] is not entitled to it.
the [Council’s] argument is correct and provides a complete answer to the claim."
Dismissal of Proprietary Claims
Since the council was found to be the rightful owner of the hard drive, the court dismissed the Claimants’ proprietary claims. His request for a declaration of ownership was rejected, as he no longer had a legal right to the hard drive. Similarly, his claim for delivery of the hard drive or permission to excavate the landfill failed, as the council had no obligation to facilitate the recovery of property it legally owned.
Constructive Trust Argument
The court rejected the Claimant’s argument for a constructive trust, finding that statutory ownership left no room for such an equitable remedy. It concluded that the council’s conduct was neither unconscionable nor in bad faith and was consistent with its legal and environmental duties. Furthermore, the significant delay in bringing the claim undermined its credibility, as equitable remedies often depend on timely action.
Legal and Practical Implications
The decision in Howells v Newport City Council has important implications for local authorities, individuals, and those managing digital assets.
For Local Authorities
The judgment confirms that councils are the legal owners of items discarded at landfill sites they manage under Section 14(6)(c) of the Control of Pollution Act 1974.
While the Council's legal right to retain the hard drive was clear, the case raises wider ethical questions about the handling of high value items such as bitcoin. In addition, the decision sets a valuable precedent for councils defending ownership of discarded items, including novel digital assets.
For Individuals
The case highlights the risks of improperly disposing of devices that store sensitive digital information, such as private keys for cryptocurrency.
Once the items are disposed of in a council-managed landfill, they can legally become the council's property, resulting in potentially irreversible losses.
It serves as a cautionary tale for the management of digital assets, highlighting the need for secure storage, detailed record keeping of private keys and careful handling of devices, particularly when moving or clearing out. This underlines the importance of personal responsibility in safeguarding digital assets.
How Can We Assist?
This case provides a cautionary reminder that the secure storage of Hard Drives, private keys and electronic devices of every nature is absolutely critical.
Despite the desperate efforts of James Howells, the law is clear as to the ownership of waste deposited with landfill sites, whether deliberate or accidental. There is no duty to return it and councils will not endeavour to do so because of associated environmental risks.
The team at KANGS regularly advises and assists clients facing environmental issues of every nature.
Although this case was not a Bitcoin dispute per se, we have extensive experience in acting for both claimants and defendants in disputes arsing from the use of cryptocurrencies and crypto assets.
Whatever your difficulty our team would be delighted to assist you, simply contact us using the details below:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through live conferencing or telephone.
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