English Welsh & Scottish Railway Ltd v E. On UK Plc & Anor [2007] EWHC 599 (Comm) (23 March 2007)

English Welsh & Scottish Railway Ltd v E. On UK Plc & Anor [2007] EWHC 599 (Comm) (23 March 2007)

The exclusionary terms in the CCA were void ab initio for breach of Article 82 EC and Chapter II Competition Act 1998. As these terms formed the main substance of the contract and could not be severed without fundamentally altering its nature, the entire CCA is void and unenforceable.

Citation
[2007] EWHC 599 (Comm)
Parties
Claimant: English Welsh & Scottish Railway Limited; Defendant: E. ON UK plc; Intervener: Office Of Rail Regulation
Jurisdiction
England and Wales
Judgment Date
23 March 2007
Procedural Posture
Commercial Court Part 8 Proceedings / Judgment on Application for Declaration
Outcome
Declaration granted in favour of EWS
Legal Topics
Abuse of Dominant Position, Severance of Contractual Terms, Invalidity of Contract, Article 82 EC, Chapter II Competition Act 1998
Competition Law Contract Law Abuse of Dominant Position Severance of Contractual Terms Invalidity of Contract Article 82 EC Chapter II Competition Act 1998

Case Brief

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Parties

English Welsh & Scottish Railway Limited

Claimant

E. ON UK plc

Defendant

Office Of Rail Regulation

Intervener

Procedural Posture

Commercial Court Part 8 Proceedings / Judgment on Application for Declaration

Legal Issues

  1. 1 Whether the exclusionary terms in the Coal Carriage Agreement are void for breach of competition law
  2. 2 Whether the Coal Carriage Agreement is wholly void and unenforceable as a result
  3. 3 Whether the exclusionary terms can be severed from the contract

Ratio Decidendi

The exclusionary terms in the CCA were void ab initio for breach of Article 82 EC and Chapter II Competition Act 1998. As these terms formed the main substance of the contract and could not be severed without fundamentally altering its nature, the entire CCA is void and unenforceable.

Court Disposition

Declaration granted in favour of EWS

Orders

  • Clauses 4.2, 4.3, 5.4 and 6.1 of the CCA are void from inception
  • The entire Coal Carriage Agreement is void and unenforceable