Court of Appeal decision on cartel damages and downstream pass on, correcting the trial judge’s under-compensation approach and revising the overcharge and pass-on figures.
The extension of time for service on Valeo was set aside because the claimants failed to show a good reason for delay; there were no real settlement negotiations with Valeo and the delay was within the claimants' control. The jurisdictional gateways for service out were satisfied at the time of the order, but the forum with the closest connection to the dispute is France, not England and Wales, given the location of the parties, witnesses, documents, and the governing law. Accordingly, the claims against the remaining defendants are stayed or dismissed for lack of jurisdiction.
High Court preliminary issue on Brazilian cartel damages claims held the claims time-barred, finding they were stand-alone actions and limitation began no later than February 2006.
Vauxhall Motors Ltd & Ors v Denso Automotive UK Ltd & Ors [2025] EWHC 213 (Ch) (05 February 2025)
Competition damages claim over thermal system component cartels. The court set aside Valeo’s extension of time for service, dismissed the claim against Valeo, and stayed the rest on forum non conveniens grounds.
The limitation issues can and should be tried as a preliminary issue ahead of all other issues. Determination of limitation does not require resolution of all general liability issues, as the key question is when claimants are to be treated as having constructive knowledge under Brazilian law, based on publicised material. This approach will likely dispose of the claim or resolve a major issue, resulting in significant savings of time and cost. The balance of factors favours a preliminary trial of limitation issues.
A party who wishes to contend at trial that the presumption of similarity between foreign and English law does not apply is not required to plead that assertion. The presumption is an evidential inference, not a material fact, and its application is limited to circumstances where it is reasonable. The absence of a specific pleading does not preclude a party from arguing the presumption should not apply. Case management and fairness do not require exclusion of the argument at this stage.
The court preferred the defendants’ multiple regression analysis methodology for overcharge, with adjustments for endogeneity and post-cartel effects, resulting in overcharge rates of 8% (monitors), 4% (notebooks), and 14% (TVs). Upstream pass-on and umbrella effects were found to be 100%. Downstream pass-on was assessed at a blended rate of 65%. The applicable law for all claims is English law, incorporating EU law, as the most significant elements and effects occurred in England and Wales. The claims are not time-barred, as a reasonably diligent insolvency practitioner would not have discov…
The court's equitable jurisdiction to award compound interest does not apply to cartel damages claims where the defendants have not obtained and retained the claimants' money by fraud. The claimants' losses after insolvency are not compensable by compound interest in equity, and the proposed amendments do not cure the fundamental defects. The claim is compensatory, not restitutionary, and the equitable jurisdiction is not engaged.