Royal Mail Group Limited v DAF Trucks Limited & Ors

Royal Mail Group Limited v DAF Trucks Limited & Ors

The Court of Appeal held that the CAT was entitled to find, on the balance of probabilities, that the claimants suffered a cartel overcharge and to quantify damages using the broad axe principle. The CAT’s approach to the pass-on defence, requiring a direct and proximate causal link, was correct in law and justified on the evidence. The inclusion of truck bodies in the value of commerce was proper given the evidence and absence of contrary proof from DAF. The CAT’s approach to compound interest was rational and supported by the evidence. All grounds of appeal were dismissed.

Parties
Claimant/respondent: Royal Mail Group Limited; Defendant/appellant: DAF Trucks Limited; Defendant/appellant: DAF Trucks N.V.; Defendant/appellant: DAF Trucks Deutschland GmbH; Defendant/appellant: PACCAR Inc; Defendant/appellant: PACCAR Financial PLC; Defendant/appellant: Leyland Trucks Limited; Claimant/respondent: BT Group PLC; Claimant/respondent: British Telecommunications PLC; Claimant/respondent: BT Fleet Limited
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal (competition Damages) / Appeal From Competition Appeal Tribunal to Court of Appeal, Judgment
Outcome
Appeal dismissed on all grounds
Legal Topics
Follow on Damages, Cartel Overcharge, Mitigation of Loss, Pass on Defence, Quantum of Damages, Compound Interest, Burden of Proof
Competition Law Tort Law Damages Follow on Damages Cartel Overcharge Mitigation of Loss Pass on Defence Quantum of Damages +2 more

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Parties

Royal Mail Group Limited

Claimant/respondent

DAF Trucks Limited

Defendant/appellant

DAF Trucks N.V.

Defendant/appellant

DAF Trucks Deutschland GmbH

Defendant/appellant

PACCAR Inc

Defendant/appellant

PACCAR Financial PLC

Defendant/appellant

Leyland Trucks Limited

Defendant/appellant

BT Group PLC

Claimant/respondent

British Telecommunications PLC

Claimant/respondent

BT Fleet Limited

Claimant/respondent

Procedural Posture

Civil Appeal (competition Damages) / Appeal From Competition Appeal Tribunal to Court of Appeal, Judgment

Legal Issues

  1. 1 Whether the Competition Appeal Tribunal erred in its assessment and quantification of cartel overcharge damages
  2. 2 Whether the Tribunal erred in law in its approach to the supply pass-on (SPO) defence and causation
  3. 3 Whether truck bodies were within the scope of the infringement as found by the European Commission

Ratio Decidendi

The Court of Appeal held that the CAT was entitled to find, on the balance of probabilities, that the claimants suffered a cartel overcharge and to quantify damages using the broad axe principle. The CAT’s approach to the pass-on defence, requiring a direct and proximate causal link, was correct in law and justified on the evidence. The inclusion of truck bodies in the value of commerce was proper given the evidence and absence of contrary proof from DAF. The CAT’s approach to compound interest was rational and supported by the evidence. All grounds of appeal were dismissed.

Court Disposition

Appeal dismissed on all grounds

Orders

  • CAT judgment and orders affirmed
  • No reduction of damages for supply pass-on