Bates & Ors v Post Office Ltd ((No.3) "Common Issues") [2019] EWHC 606 (QB) (15 March 2019)

Bates & Ors v Post Office Ltd ((No.3) "Common Issues") [2019] EWHC 606 (QB) (15 March 2019)

The contracts between the Post Office and sub-postmasters are relational contracts, imposing duties of good faith, fair dealing, transparency, co-operation, and trust and confidence. Numerous implied terms are incorporated, including duties to provide adequate training and support, to maintain a system fit for purpose, to investigate shortfalls properly, and to exercise contractual powers honestly and in good faith. The Supply of Goods and Services Act 1982 applies to the provision of Horizon, Helpline, and training. Certain express terms are onerous or unusual and unenforceable unless fairly brought to the sub-postmasters’ attention.

Citation
[2019] EWHC 606
Parties
Claimant: Alan Bates and Others; Defendant: Post Office Limited
Jurisdiction
England and Wales
Judgment Date
15 March 2019
Procedural Posture
Group Litigation Order (glo) / Judgment on Common Issues
Outcome
Judgment for the Claimants on Common Issues
Legal Topics
Implied Terms, Relational Contracts, Good Faith, Supply of Goods and Services Act 1982, Onerous Terms, Unfair Contract Terms, Agency, Accounting, Termination of Contract
Contract Law Commercial Law Consumer Protection Implied Terms Relational Contracts Good Faith Supply of Goods and Services Act 1982 Onerous Terms +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 9 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Alan Bates and Others

Claimant

Post Office Limited

Defendant

Procedural Posture

Group Litigation Order (glo) / Judgment on Common Issues

Legal Issues

  1. 1 Whether the contracts between Post Office and sub-postmasters are relational contracts subject to duties of good faith, fair dealing, transparency, co-operation, and trust and confidence
  2. 2 Which implied terms apply to the contracts
  3. 3 Whether the Supply of Goods and Services Act 1982 applies to the provision of Horizon, Helpline, and training

Ratio Decidendi

The contracts between the Post Office and sub-postmasters are relational contracts, imposing duties of good faith, fair dealing, transparency, co-operation, and trust and confidence. Numerous implied terms are incorporated, including duties to provide adequate training and support, to maintain a system fit for purpose, to investigate shortfalls properly, and to exercise contractual powers honestly and in good faith. The Supply of Goods and Services Act 1982 applies to the provision of Horizon, Helpline, and training. Certain express terms are onerous or unusual and unenforceable unless fairly brought to the sub-postmasters’ attention.

Court Disposition

Judgment for the Claimants on Common Issues

Orders

  • Declaration that the contracts are relational and subject to duties of good faith, fair dealing, transparency, co-operation, and trust and confidence
  • Implied terms as identified in the judgment are incorporated into the contracts