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, giving rise to duties of good faith, fair dealing, transparency, co-operation, and trust and confidence. Numerous implied terms are incorporated, including duties to provide adequate training, a fit-for-purpose system, proper investigation of shortfalls, and fair exercise of contractual powers. The Supply of Goods and Services Act 1982 applies to the provision of Horizon, Helpline, and training, requiring reasonable care and skill. Certain express terms are onerous or unusual and unenforceable unless fairly brought to the sub-postmasters' attention. The Post Office's approach to contractual enforcement and...

Citation
[2019] EWHC 606 (QB)
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) Contract/commercial / Judgment on Common Issues (liability Phase, Not Quantum)
Outcome
Judgment for Claimants on Common Issues (liability phase only); no quantum or individual damages determined.
Legal Topics
Relational Contracts, Implied Terms, Good Faith, Supply of Goods and Services Act 1982, Onerous Terms, Unfair Contract Terms, Agency, Accounting, Suspension and Termination, Malicious Prosecution, Unconscionable Dealing
Contract Law Commercial Law Employment Law Relational Contracts Implied Terms Good Faith Supply of Goods and Services Act 1982 Onerous Terms +6 more

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Parties

Alan Bates and Others

Claimant

Post Office Limited

Defendant

Procedural Posture

Group Litigation Order (glo) Contract/commercial / Judgment on Common Issues (liability Phase, Not Quantum)

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 are incorporated into the contracts
  3. 3 Application of the Supply of Goods and Services Act 1982 to Horizon, Helpline, and training

Ratio Decidendi

The contracts between the Post Office and sub-postmasters are relational contracts, giving rise to duties of good faith, fair dealing, transparency, co-operation, and trust and confidence. Numerous implied terms are incorporated, including duties to provide adequate training, a fit-for-purpose system, proper investigation of shortfalls, and fair exercise of contractual powers. The Supply of Goods and Services Act 1982 applies to the provision of Horizon, Helpline, and training, requiring reasonable care and skill. Certain express terms are onerous or unusual and unenforceable unless fairly brought to the sub-postmasters' attention. The Post Office's approach to contractual enforcement and...

Court Disposition

Judgment for Claimants on Common Issues (liability phase only); no quantum or individual damages determined.

Orders

  • Findings on Common Issues to bind all parties in subsequent phases of litigation.
  • Further trials to be held on Horizon Issues and individual claims, including quantum and causation.