WH Newson Holding Ltd & Ors v IMI Plc & Anor [2016] EWCA Civ 773 (27 July 2016)

WH Newson Holding Ltd & Ors v IMI Plc & Anor [2016] EWCA Civ 773 (27 July 2016)

Section 1(4) of the Civil Liability (Contribution) Act 1978 precludes a Part 20 defendant from raising a limitation defence to a contribution claim where, on the pleadings at the date of settlement, the burden of proof on limitation fell on the claimant due to a positive case pleaded in reply. The court must assume that the factual basis of the claim, including the reply, could be established, and the limitation defence is not available unless it was a collateral defence with the burden on the defendant.

Citation
[2016] EWCA Civ 773
Parties
Claimants: W. H. Newson Holding Limited and Others; First Defendant/part 20 Claimant/respondent: IMI PLC; Second Defendant/part 20 Claimant/respondent: IMI Kynoch Limited; Part 20 Defendant/appellant: Delta Limited (formerly Delta PLC); Part 20 Defendant/appellant: Delta Engineering Holdings Limited
Jurisdiction
England and Wales
Judgment Date
27 July 2016
Procedural Posture
Appeal / Court of Appeal Judgment on Preliminary Issue From High Court (chancery Division)
Outcome
Appeal dismissed
Legal Topics
Contribution Between Tortfeasors, Limitation of Actions, Interpretation of Civil Liability (contribution) Act 1978 S.1(4), Follow on Damages Claims, Cartel Damages, Bona Fide Settlement
Civil Procedure Competition Law Tort Law Contribution Between Tortfeasors Limitation of Actions Interpretation of Civil Liability (contribution) Act 1978 S.1(4) Follow on Damages Claims Cartel Damages +1 more

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Parties

W. H. Newson Holding Limited and Others

Claimants

IMI PLC

First Defendant/part 20 Claimant/respondent

IMI Kynoch Limited

Second Defendant/part 20 Claimant/respondent

Delta Limited (formerly Delta PLC)

Part 20 Defendant/appellant

Delta Engineering Holdings Limited

Part 20 Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment on Preliminary Issue From High Court (chancery Division)

Legal Issues

  1. 1 Whether section 1(4) of the Civil Liability (Contribution) Act 1978 precludes a Part 20 defendant from raising a limitation defence to a contribution claim after a bona fide settlement of the main claim.
  2. 2 Whether the factual basis of the claimant's reply to a limitation defence forms part of the 'factual basis of the claim' for the purposes of s.1(4).

Ratio Decidendi

Section 1(4) of the Civil Liability (Contribution) Act 1978 precludes a Part 20 defendant from raising a limitation defence to a contribution claim where, on the pleadings at the date of settlement, the burden of proof on limitation fell on the claimant due to a positive case pleaded in reply. The court must assume that the factual basis of the claim, including the reply, could be established, and the limitation defence is not available unless it was a collateral defence with the burden on the defendant.

Court Disposition

Appeal dismissed

Orders

  • Declaration that section 1(4) of the Civil Liability (Contribution) Act 1978 precludes Delta from arguing that the claimants' claims are time barred for the reasons set out in paragraph 18 of Delta's Amended Defence dated 16 October 2014.