WH Newson Holding Ltd & Ors v IMI Plc & Anor

WH Newson Holding Ltd & Ors v IMI Plc & Anor

Section 1(4) of the Civil Liability (Contribution) Act 1978 precludes a Part 20 defendant from raising a limitation defence to a contribution claim following a bona fide settlement, as the court must assume the factual basis of both the substantive claim and any reply to collateral defences could be established, making the settling defendant liable.

Parties
Claimant: W. H. Newson Holding Limited and 22 others (Travis Perkins Plc group); Defendant/part 20 Claimant/respondent: IMI PLC; Defendant/part 20 Claimant/respondent: IMI Kynoch Limited; Part 20 Defendant/appellant: Delta Limited (formerly Delta PLC); Part 20 Defendant/appellant: Delta Engineering Holdings Limited
Jurisdiction
England and Wales
Judgment Date
27 July 2016
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal dismissed
Legal Topics
Contribution Claims, Limitation Periods, Settlement, Collateral Defences, Interpretation of Civil Liability (contribution) Act 1978 S.1(4)
Civil Procedure Competition Law Statutory Interpretation Contribution Claims Limitation Periods Settlement Collateral Defences Interpretation of Civil Liability (contribution) Act 1978 S.1(4)

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Parties

W. H. Newson Holding Limited and 22 others (Travis Perkins Plc group)

Claimant

IMI PLC

Defendant/part 20 Claimant/respondent

IMI Kynoch Limited

Defendant/part 20 Claimant/respondent

Delta Limited (formerly Delta PLC)

Part 20 Defendant/appellant

Delta Engineering Holdings Limited

Part 20 Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether section 1(4) of the Civil Liability (Contribution) Act 1978 precludes Delta from relying on a limitation defence to IMI's Part 20 claim after IMI's bona fide settlement with Travis Perkins
  2. 2 Proper interpretation of 'factual basis of the claim' in section 1(4) proviso
  3. 3 Whether collateral defences (such as limitation) can be raised by Part 20 defendants in contribution proceedings

Ratio Decidendi

Section 1(4) of the Civil Liability (Contribution) Act 1978 precludes a Part 20 defendant from raising a limitation defence to a contribution claim following a bona fide settlement, as the court must assume the factual basis of both the substantive claim and any reply to collateral defences could be established, making the settling defendant liable.

Court Disposition

appeal dismissed

Orders

  • Section 1(4) of the Civil Liability (Contribution) Act 1978 precludes Delta from arguing that the claimants' claims are time barred for the reasons set out in paragraph 18 of Delta’s Amended Defence dated 16 October 2014.