Tyne and Wear Passenger Transport Executive (Trading As Nexus) v National Union of Rail, Maritime and Transport Workers & Anor [2022] EWCA Civ 1408 (27 October 2022)

Tyne and Wear Passenger Transport Executive (Trading As Nexus) v National Union of Rail, Maritime and Transport Workers & Anor [2022] EWCA Civ 1408 (27 October 2022)

The Court of Appeal held that the Letter Agreement, as a collective agreement not intended to be legally enforceable under section 179 of the 1992 Act, is not itself rectifiable. Rectification may only be sought in respect of the individual contracts of employment into which the collective agreement is incorporated, and the proper defendants in such proceedings are the employees, not the Unions. The current action is formally defective and must be dismissed. The Court further held that Nexus could have raised the mistake case as a defence in the Anderson proceedings, and thus, in future proceedings, Nexus may be precluded by res judicata or abuse of process from raising the mistake case...

Citation
[2022] EWCA Civ 1408
Parties
Claimant/respondent: Tyne and Wear Passenger Transport Executive (trading as Nexus); Defendant/appellant: National Union of Rail, Maritime and Transport Workers; Defendant/appellant: Unite the Union
Jurisdiction
England and Wales
Judgment Date
27 October 2022
Procedural Posture
Appeal (civil) / Appeal From High Court Judgment on Preliminary Issues and Strike Out/summary Judgment Application
Outcome
Appeal allowed; action dismissed as formally defective.
Legal Topics
Rectification of Contract, Collective Agreements, Unlawful Deduction of Wages, Res Judicata, Abuse of Process, Employment Rights Act 1996, Trade Union and Labour Relations (consolidation) Act 1992
Employment Law Contract Law Equity Rectification of Contract Collective Agreements Unlawful Deduction of Wages Res Judicata Abuse of Process +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 18 Party arguments 2
Sign in to unlock

Parties

Tyne and Wear Passenger Transport Executive (trading as Nexus)

Claimant/respondent

National Union of Rail, Maritime and Transport Workers

Defendant/appellant

Unite the Union

Defendant/appellant

Procedural Posture

Appeal (civil) / Appeal From High Court Judgment on Preliminary Issues and Strike Out/summary Judgment Application

Legal Issues

  1. 1 Whether the court has power to rectify a collective agreement that is not legally enforceable under section 179 of the Trade Union and Labour Relations (Consolidation) Act 1992
  2. 2 Whether Nexus is estopped or otherwise precluded (by res judicata or abuse of process) from pursuing rectification of the Letter Agreement due to the earlier Anderson proceedings
  3. 3 Whether the claim should be struck out or summary judgment granted on grounds of abuse of process, laches, or lack of legal effect

Ratio Decidendi

The Court of Appeal held that the Letter Agreement, as a collective agreement not intended to be legally enforceable under section 179 of the 1992 Act, is not itself rectifiable. Rectification may only be sought in respect of the individual contracts of employment into which the collective agreement is incorporated, and the proper defendants in such proceedings are the employees, not the Unions. The current action is formally defective and must be dismissed. The Court further held that Nexus could have raised the mistake case as a defence in the Anderson proceedings, and thus, in future proceedings, Nexus may be precluded by res judicata or abuse of process from raising the mistake case...

Court Disposition

Appeal allowed; action dismissed as formally defective.

Orders

  • Action dismissed; Nexus may bring fresh proceedings against appropriate defendants if so advised.
  • No rectification of the Letter Agreement as a collective agreement; rectification only possible in respect of individual contracts of employment.