Britned Development Ltd v ABB AB And ABB Ltd [2019] EWCA Civ 1840 (31 October 2019)

Britned Development Ltd v ABB AB And ABB Ltd [2019] EWCA Civ 1840 (31 October 2019)

The Court of Appeal held that the assessment of cartel damages under Article 101 TFEU is governed by compensatory principles, requiring restoration of the claimant to the position absent the infringement. The High Court judge correctly applied English and EU law, including the 'broad axe' approach to quantification...

Source-derived case information.

Citation
[2019] EWCA Civ 1840
Parties
Appellant/respondent: BritNed Development Limited; Respondents/appellants: ABB AB and ABB Limited
Jurisdiction
England and Wales
Judgment Date
31 October 2019
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeals From High Court (chancery Division, Business and Property)
Outcome
Appeals dismissed; High Court judgment largely upheld.
Legal Topics
Cartel Damages, Breach of Statutory Duty, Assessment of Damages, Article 101 TFEU, Overcharge, Lost Profit, Compound Interest, Regulatory Cap, Principle of Effectiveness, Principle of Equivalence
Competition Law Tort Law European Union Law Cartel Damages Breach of Statutory Duty Assessment of Damages Article 101 TFEU Overcharge +5 more

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Parties

BritNed Development Limited

Appellant/respondent

ABB AB and ABB Limited

Respondents/appellants

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeals From High Court (chancery Division, Business and Property)

Legal Issues

  1. 1 What principles govern the assessment of damages for breach of competition law (Article 101 TFEU) in cartel cases?
  2. 2 How should overcharge, lost profit, and compound interest claims be quantified in the context of a proven cartel?
  3. 3 Does the principle of effectiveness or equivalence under EU law require a presumption of harm or a different approach to quantification?

Ratio Decidendi

The Court of Appeal held that the assessment of cartel damages under Article 101 TFEU is governed by compensatory principles, requiring restoration of the claimant to the position absent the infringement. The High Court judge correctly applied English and EU law, including the 'broad axe' approach to quantification in the face of evidential uncertainty, and did not err in refusing to presume harm or in reducing damages to avoid over-compensation. The principles of effectiveness and equivalence were not breached. The appeals on the overcharge, lost profit, and regulatory cap issues were dismissed.

Court Disposition

Appeals dismissed; High Court judgment largely upheld.

Orders

  • Damages of €15,030,221 plus simple interest from 21 May 2007 awarded to BritNed for overcharge claim.
  • Lost profit and compound interest claims dismissed.