Gallaher Group Ltd & Anor, R (on the application of) v Competition and Markets Authority [2015] EWHC 84 (Admin) (26 January 2015)

Gallaher Group Ltd & Anor, R (on the application of) v Competition and Markets Authority [2015] EWHC 84 (Admin) (26 January 2015)

The OFT's failure to disclose to all parties the assurances given to TMR was unfair and a breach of its public law duty of fairness and equal treatment. However, the principle of finality and legal certainty, as established in domestic and EU competition law, precludes the claimants from obtaining repayment of penalties paid under ERAs. The mistaken payment to TMR does not entitle others to similar payments, as public funds should not be used to replicate errors, and the claimants, with full knowledge and legal advice, chose not to appeal.

Citation
[2015] EWHC 84 (Admin)
Parties
Claimant: Gallaher Group Limited; Claimant: Gallaher Limited; Defendant: Competition and Markets Authority
Jurisdiction
England and Wales
Judgment Date
26 January 2015
Procedural Posture
Judicial Review / Final Judgment After Full Hearing
Outcome
Claims dismissed
Legal Topics
Early Resolution Agreements, Penalties, Fairness and Equal Treatment, Finality and Legal Certainty, Judicial Review, Legitimate Expectation

Case Brief

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Parties

Gallaher Group Limited

Claimant

Gallaher Limited

Claimant

Competition and Markets Authority

Defendant

Procedural Posture

Judicial Review / Final Judgment After Full Hearing

  1. 1 Whether the OFT breached its public law duty of fairness and equal treatment by giving assurances to one party (TMR) not disclosed to others in the Early Resolution Agreement process
  2. 2 Whether the claimants are entitled to repayment of penalties paid under ERAs due to assurances given to TMR
  3. 3 Whether the principle of finality and legal certainty precludes such repayment

Ratio Decidendi

The OFT's failure to disclose to all parties the assurances given to TMR was unfair and a breach of its public law duty of fairness and equal treatment. However, the principle of finality and legal certainty, as established in domestic and EU competition law, precludes the claimants from obtaining repayment of penalties paid under ERAs. The mistaken payment to TMR does not entitle others to similar payments, as public funds should not be used to replicate errors, and the claimants, with full knowledge and legal advice, chose not to appeal.

Court Disposition

Claims dismissed