The Secretary of State for Health & Anor v Servier Laboratories Ltd & Ors [2019] EWCA Civ 1096 (27 June 2019)

The Secretary of State for Health & Anor v Servier Laboratories Ltd & Ors [2019] EWCA Civ 1096 (27 June 2019)

Only the General Court's finding that the Commission had not established the relevant market was limited to perindopril (and thus that Servier did not have a dominant position) is res judicata with absolute effect and binding on the national court. Other factual findings in the General Court's judgment, including those on therapeutic equivalence and prescribing practices, are not binding for the purposes of the mitigation trial. The national court is not precluded from considering evidence on those issues under domestic law.

Citation
[2019] EWCA Civ 1096
Parties
Claimant/respondent: The Secretary of State for Health; Claimants/respondents: Scottish Ministers; Claimants/respondents: Welsh Ministers & Others; Defendants/appellants: Servier Laboratories Limited; Defendants/appellants: Servier Research and Development Limited; Defendants/appellants: Les Laboratoires Servier SAS; Defendants/appellants: Servier SAS
Jurisdiction
England and Wales
Judgment Date
27 June 2019
Procedural Posture
Appeal / Court of Appeal Judgment on Interlocutory Appeal Regarding the Binding Effect of EU Res Judicata in National Damages Proceedings
Outcome
Appeal dismissed
Legal Topics
Res Judicata, Abuse of Dominance, Mitigation of Loss, Market Definition, Binding Effect of EU Judgments
Competition Law EU Law Civil Procedure Res Judicata Abuse of Dominance Mitigation of Loss Market Definition Binding Effect of EU Judgments

Case Brief

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Parties

The Secretary of State for Health

Claimant/respondent

Scottish Ministers

Claimants/respondents

Welsh Ministers & Others

Claimants/respondents

Servier Laboratories Limited

Defendants/appellants

Servier Research and Development Limited

Defendants/appellants

Les Laboratoires Servier SAS

Defendants/appellants

Servier SAS

Defendants/appellants

Procedural Posture

Appeal / Court of Appeal Judgment on Interlocutory Appeal Regarding the Binding Effect of EU Res Judicata in National Damages Proceedings

Legal Issues

  1. 1 Whether factual findings of the EU General Court in annulment proceedings are binding (res judicata) on the English court in subsequent damages proceedings
  2. 2 Scope of EU res judicata (absolute/erga omnes effect) in national litigation
  3. 3 Whether the national court is precluded from re-examining facts found by the General Court relevant to mitigation and causation

Ratio Decidendi

Only the General Court's finding that the Commission had not established the relevant market was limited to perindopril (and thus that Servier did not have a dominant position) is res judicata with absolute effect and binding on the national court. Other factual findings in the General Court's judgment, including those on therapeutic equivalence and prescribing practices, are not binding for the purposes of the mitigation trial. The national court is not precluded from considering evidence on those issues under domestic law.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the only binding finding is that the Commission did not establish the relevant market as limited to perindopril. Other factual findings are not binding for the mitigation trial.