Zavarco Plc v Nasir [2021] EWCA Civ 1217 (05 August 2021)

Zavarco Plc v Nasir [2021] EWCA Civ 1217 (05 August 2021)

The doctrine of merger does not apply to a purely declaratory judgment. A declaration that merely affirms an existing right does not extinguish the underlying cause of action or preclude a subsequent claim for enforceable relief based on the same cause of action. The appeal is dismissed because the 2017 declaratory order did not bar Zavarco from later seeking payment of the unpaid calls.

Citation
[2021] EWCA Civ 1217
Parties
Claimant/respondent: Zavarco PLC; Appellant/defendant: Tan Sri Syed Mohd Yusof bin Tun Syed Nasir
Jurisdiction
England and Wales
Judgment Date
05 August 2021
Procedural Posture
Civil Appeal / Second Appeal From High Court to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Doctrine of Merger, Declaratory Relief, Res Judicata, Abuse of Process
Civil Procedure Company Law Doctrine of Merger Declaratory Relief Res Judicata Abuse of Process

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Parties

Zavarco PLC

Claimant/respondent

Tan Sri Syed Mohd Yusof bin Tun Syed Nasir

Appellant/defendant

Procedural Posture

Civil Appeal / Second Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Does the doctrine of merger apply to a judgment granting only declaratory relief?
  2. 2 Does a declaratory judgment extinguish the underlying cause of action, precluding subsequent claims for further relief on the same cause of action?

Ratio Decidendi

The doctrine of merger does not apply to a purely declaratory judgment. A declaration that merely affirms an existing right does not extinguish the underlying cause of action or preclude a subsequent claim for enforceable relief based on the same cause of action. The appeal is dismissed because the 2017 declaratory order did not bar Zavarco from later seeking payment of the unpaid calls.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.