Time Group Ltd. v Computer 2000 Distribution Ltd. [2002] EWHC 126 (Technology) (4th February, 2002)

Time Group Ltd. v Computer 2000 Distribution Ltd. [2002] EWHC 126 (Technology) (4th February, 2002)

Time's claim against Computer 2000 is an abuse of process. The issues raised could and should have been brought in the earlier action against IBM. The claim relates to the same facts and matters as the prior action, and Time's conduct was intended to extract further settlement from IBM by using Computer 2000 as a conduit. The settlement agreement with IBM bars the present claim, and the prejudice caused to both IBM and Computer 2000, as well as the impediment to the administration of justice, justify striking out the claim.

Citation
[2002] EWHC 126 (Technology)
Parties
Claimant/respondent: Time Group Limited; Defendant/appellant: Computer 2000 Distribution Limited; Part 20 Defendant: IBM United Kingdom Limited
Jurisdiction
England and Wales
Procedural Posture
Application to Strike Out Claim as Abuse of Process / Judgment on Application
Outcome
Claim struck out as abuse of process
Legal Topics
Abuse of Process, Res Judicata, Settlement Agreements, Joinder of Parties
Civil Procedure Contract Law Abuse of Process Res Judicata Settlement Agreements Joinder of Parties

Case Brief

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Parties

Time Group Limited

Claimant/respondent

Computer 2000 Distribution Limited

Defendant/appellant

IBM United Kingdom Limited

Part 20 Defendant

Procedural Posture

Application to Strike Out Claim as Abuse of Process / Judgment on Application

Legal Issues

  1. 1 Whether Time's claim against Computer 2000 constitutes an abuse of process due to prior settlement with IBM
  2. 2 Whether issues raised in the second action should have been raised in the first action
  3. 3 Effect of settlement agreements on subsequent claims

Ratio Decidendi

Time's claim against Computer 2000 is an abuse of process. The issues raised could and should have been brought in the earlier action against IBM. The claim relates to the same facts and matters as the prior action, and Time's conduct was intended to extract further settlement from IBM by using Computer 2000 as a conduit. The settlement agreement with IBM bars the present claim, and the prejudice caused to both IBM and Computer 2000, as well as the impediment to the administration of justice, justify striking out the claim.

Court Disposition

Claim struck out as abuse of process

Orders

  • Time's claim against Computer 2000 is dismissed
  • No further proceedings may be brought by Time relating to the Blue Lightning PCs against Computer 2000 or IBM