Great Western Trains Company Ltd v Network Rail Infrastructure Ltd

Great Western Trains Company Ltd v Network Rail Infrastructure Ltd

The loss of the £38 million payment under clause 18.1, which would have been made but for the Network Change, is a loss consequential upon the Network Change and is recoverable under Part G. The arbitrator erred in law by excluding this sum from the Part G calculation. The £18 million payment by FGW to the Authority is not recoverable from Network Rail and must be sought from the Authority, if at all.

Parties
Claimant: Great Western Trains Company Limited; Defendant: Network Rail Infrastructure Limited
Jurisdiction
England and Wales
Judgment Date
02 February 2010
Procedural Posture
Arbitration Appeal / Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed in part; arbitrator's decision set aside as to the £38 million; otherwise dismissed.
Legal Topics
Interpretation of Compensation Provisions, Interaction of Contractual Regimes, Calculation of Damages, Rail Industry Regulation
Contract Law Arbitration Transport Law Interpretation of Compensation Provisions Interaction of Contractual Regimes Calculation of Damages Rail Industry Regulation

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Parties

Great Western Trains Company Limited

Claimant

Network Rail Infrastructure Limited

Defendant

Procedural Posture

Arbitration Appeal / Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Whether payments under clause 18.1 of the Franchise Agreement should be taken into account in calculating compensation under Part G of the Network Code as incorporated into the Track Access Agreement
  2. 2 Whether the arbitrator erred in law by excluding such payments from the Part G calculation

Ratio Decidendi

The loss of the £38 million payment under clause 18.1, which would have been made but for the Network Change, is a loss consequential upon the Network Change and is recoverable under Part G. The arbitrator erred in law by excluding this sum from the Part G calculation. The £18 million payment by FGW to the Authority is not recoverable from Network Rail and must be sought from the Authority, if at all.

Court Disposition

Appeal allowed in part; arbitrator's decision set aside as to the £38 million; otherwise dismissed.

Orders

  • Account must be taken of the £38 million clause 18.1 payment in calculating Part G compensation due from Network Rail to FGW.
  • FGW's claim for the £18 million payment against Network Rail is dismissed; any recovery must be sought from the Authority.