Laker Airway Ltd v Department of Trade [1976] EWCA Civ 10 (15 December 1976)

Laker Airway Ltd v Department of Trade [1976] EWCA Civ 10 (15 December 1976)

The Secretary of State's 1976 policy guidance was ultra vires because it contradicted the statutory objectives of the Civil Aviation Act 1971, particularly the requirement to encourage competition and prevent monopoly. The Secretary of State could not use guidance to achieve by indirect means what the statute did not permit directly. Furthermore, the prerogative power to withdraw designation could not be used to circumvent statutory protections or deprive Laker Airways of its rights without due process. The appeal was dismissed and the High Court's declaration that the Secretary of State acted unlawfully was upheld.

Citation
[1976] EWCA Civ 10
Parties
Plaintiff (respondent): Laker Airway Limited; Defendant (appellant): Department of Trade
Jurisdiction
England and Wales
Judgment Date
15 December 1976
Procedural Posture
Appeal From High Court (queen's Bench Division, Commercial List) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Ultra Vires, Ministerial Discretion, Prerogative Powers, Estoppel Against the Crown, Statutory Interpretation, Licensing of Air Carriers
Administrative Law Constitutional Law Aviation Law Ultra Vires Ministerial Discretion Prerogative Powers Estoppel Against the Crown Statutory Interpretation +1 more

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Parties

Laker Airway Limited

Plaintiff (respondent)

Department of Trade

Defendant (appellant)

Procedural Posture

Appeal From High Court (queen's Bench Division, Commercial List) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the Secretary of State's policy guidance to the Civil Aviation Authority was ultra vires the Civil Aviation Act 1971
  2. 2 Whether the Secretary of State could lawfully withdraw the designation of Laker Airways under the Bermuda Agreement by prerogative power
  3. 3 Whether estoppel could prevent the Crown from withdrawing designation or revoking the licence

Ratio Decidendi

The Secretary of State's 1976 policy guidance was ultra vires because it contradicted the statutory objectives of the Civil Aviation Act 1971, particularly the requirement to encourage competition and prevent monopoly. The Secretary of State could not use guidance to achieve by indirect means what the statute did not permit directly. Furthermore, the prerogative power to withdraw designation could not be used to circumvent statutory protections or deprive Laker Airways of its rights without due process. The appeal was dismissed and the High Court's declaration that the Secretary of State acted unlawfully was upheld.

Court Disposition

Appeal dismissed

Orders

  • Declaration that the Secretary of State's policy guidance was ultra vires and unlawful
  • Secretary of State not entitled to withdraw Laker Airways' designation or require revocation of the Skytrain licence under the impugned guidance