English Welsh & Scottish Railway Ltd v E. On UK Plc & Anor

The exclusionary terms in the CCA were void from inception for abuse of dominant position; since severance would fundamentally alter the contract, the entire CCA is void and unenforceable.

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; the CCA is void and unenforceable.
Legal Topics: Abuse of Dominant Position, Severance of Contractual Terms, Void Contracts, Enforceability, Public Law Illegality

Competition Law Contract Law European Law Abuse of Dominant Position Severance of Contractual Terms Void Contracts Enforceability Public Law Illegality

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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 Whether the exclusionary terms in the Coal Carriage Agreement are void for abuse of dominant position under Article 82 EC and Chapter II of the Competition Act 1998
2 Whether the Directions issued by the Office of Rail Regulation render the entire Coal Carriage Agreement void and unenforceable
3 Whether the exclusionary terms can be severed from the contract or if the whole contract is void

Ratio Decidendi

The exclusionary terms in the CCA were void from inception for abuse of dominant position; since severance would fundamentally alter the contract, the entire CCA is void and unenforceable.

Court Disposition

Declaration granted in favour of EWS; the CCA is void and unenforceable.

Orders

Precise wording of the declaration to be determined after further submissions from parties.