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A Company S Right To Damages For Non Pecuniary Loss 1St Edition Wilcox Online Ebook Texxtbook Full Chapter PDF
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A COMPANY’S RIG HT TO DAMAGES FOR
NON-PECUNIAR Y LOSS
VANESSA WILCOX
University Printing House, Cambridge CB2 8BS, United Kingdom
www.cambridge.org
Information on this title: www.cambridge.org/9781107139275
C Vanessa Wilcox 2016
part i Background 1
1 Introduction 3
I The Four Premises 3
II The Propriety of Awarding Damages for Non-Pecuniary
Loss to Corporations 3
III Jurisdictions Covered 4
A The EctHR and England 4
B Discounting other Council of Europe Member States 7
IV Structure 12
vii
viii contents
B Aids to Interpretation 33
C Conclusion 34
III Corporations and the Victim Status 34
A Direct Actions 34
B Indirect Actions 38
IV Corporate Rights under the ECHR 39
A Art. 2 ECHR 40
B Art. 3 ECHR 40
C Art. 4 ECHR 41
D Art. 5 ECHR 41
E Art. 6 ECHR 42
F Art. 7 ECHR 42
G Art. 8 ECHR 42
1 Home 43
2 Correspondence 44
3 Family Life 45
4 Private Life 45
H Art. 9 ECHR 49
I Art. 10 ECHR 50
J Art. 11 ECHR 50
K Art. 12 ECHR 50
L Art. 13 ECHR 50
M Art. 14 ECHR 51
N Art. 34 ECHR 51
O Art. 41 ECHR 51
P Protocols to the ECHR 51
Q Conclusion 53
V Just Satisfaction 54
A Legislative History 54
B The EctHR’s Early Jurisprudence on Damages 56
C Non-Pecuniary Loss and Damages for Such Loss
before the EctHR 57
D A Finding as Sufficient Just Satisfaction 58
VI Conclusion 60
II Availability 137
III An Examination of the Cases 138
IV The Real Object of an Aggravated Award 142
V Legislative Reform 143
VI Attributed Aggravated Damage? 144
VII Conclusion 145
9 Conclusion 180
I Introduction 180
II Theoretical and Legal Foundations of the Four Premises 181
A Non-Pecuniary Spheres 181
B The Nature and Attributes of Corporations 181
C Corporate Rights 182
D Corporate Remedies 183
1 Direct Non-Pecuniary Loss 183
2 Indirect Non-Pecuniary Loss 186
III Conclusion 188
Index 189
PREFACE
Australia
Uren v. John Fairfax & Sons Pty Ltd (1966) 117 CLR 115 148
Austria
OGH in G1U Neue Folge (G1U New Series, G1UNF), no. 4185 10
Canada
Walker v. CFTO Ltd, CanLII 126 (ON CA), (1987), 59 OR (2d) 104 175
WeGo Kayaking Ltd v. Sewid 2007 BCSC 49 172
EctHR
A Association and H v. Austria (decision), 15.03.1984, no. 9905/82 50
A v. Norway, 09.04.2009, no. 28070/06 48
Agrotexim v. Greece, 24.10.1995, no. 14807/89 48
Agrotexim Hellas SA, Biotex SA, Hymofix Hellas SA, Kykladiki SA, Mepex SA and
Texema SA v. Greece (decision), 12.02.1992, no. 14807/89 39
Airey v. Ireland, 09.10.1979, no. 6289/73 32, 51
Alithia Publishing Company v. Cyprus, 11.07.2002, no. 53594/99 78
Aquilina v. Malta, 29.04.1999, no. 25642/94 58
Association for European Integration and Human Rights and Ekimdzhiev v. Bulgaria,
28.06.2007, no. 62540/00 46
Association ‘Regele Mihai’ v. Romania (decision), 04.09.1995, no. 26916/95 52
Autronic AG v. Switzerland, 22.05.1990, no. 12726/87 50
Axel Springer AG v. Germany [GC], 07.02.2012, no. 39954/08 45, 47
xv
xvi table of cases
England
A v. B [2007] EWHC 1246 98
AB v. South West Water Services [1993] QB 507 96–97
Abrath v. North Eastern Railway Co. [1886] 11 App Cas 247 94, 149
Adams v. Cape Industries plc [1990] Ch 433 93
Aldermen and Citizens of the City of Norwich v. The Norfolk Railway Company [1855] 4
El & Bl 397 90
Arab Monetary Fund v. Hashim (No. 3) [1991] 2 AC 114 91
Archer v. Brown [1985] QB 401 99
Armsworth v. South Eastern Ry Co. [1847] 11 Jur (OS) 758 131
Ashley v. Chief Constable of Sussex Police [2007] 1 WLR 398 137
Ashley v. Chief Constable of Sussex Police [2008] 1 AC 962 96–97
Aspro Travel v. Owners Abroad [1996] 1 WLR 132 111
Bailey v. Bullock [1950] 2 All ER 1167 129
Behrens v. Bertram Mills Circus Ltd [1957] 2 QB 1 130
Bilta (UK) Ltd (In Liquidation) v. Nazir [2015] 2 WLR 1168 151, 162
Bishopsgate Investment Management Ltd v. Maxwell (No. 1) [1993] BCC 120 152
Boehringer Ingelheim Ltd v. Vetplus Ltd [2007] Bus LR 1456 119
Bognor Regis Urban Distinct Council v. Campion [1972] 2 QB 169 110
Branchett v. Beaney [1992] 24 HLR 348 161
xx table of cases
Stone & Rolls Ltd (in liquidation) v. Moore Stephens (a firm) [2009] UKHL 39 149
Tesco Supermarkets Ltd v. Nattrass [1972] AC 153 150
The Case of Sutton’s Hospital (1612) 10 Coke Reports 23a 90
The Medina [1900] AC 113 103
Thomas v. News Group Newspapers Ltd [2002] EMLR 4 124–125
Thornton v. Telegraph Media Group Ltd [2011] 1 WLR 1985 48, 108
Tipling v. Pexall [1613] 2 Bulst 233 90, 93–94
Tournier v. National Provincial and Union Bank of England [1924] 1 KB 461 108
Triplex Safety Glass Co. Ltd v. Lancegaye Safety Glass (1934) Ltd [1939] 2 KB 395 93
Various Claimants v. Catholic Child Welfare Society [2012] 3 WLR 1319 147
Verderame v. Commercial Union Assurance Co. plc [1955–95] PNLR 612 96, 98
Vidal Hall v. Google Inc [2015] 3 WLR 409 120
Waddington v. Miah [1974] 1 WLR 683 87
Wainwright v. Home Office [2004] 2 AC 406 120, 124
Wallis v. Meredith [2011] EWHC 75 141
Watts v. Morrow [1991] 1 WLR 1421 130, 161
West v. Shephard [1964] AC 326 128
Wilkinson v. Downton [1897] 2 QB 57 124
Williams v. Beaumont [1833] 10 Bing 260 109
Wright v. British Railways Board [1983] 2 AC 773 24
Yarborough v. Bank of England [1812] 16 East 6 93
Youssoupoff v. Metro-Goldwyn-Mayer Pictures Ltd [1934] 50 TLR 581 108
ZAM v. CFW [2013] EMLR 27 141
European Union
Joined cases 46/87 and 227/88 Hoechst AG v. Commission of the European Communities
[1989] ECR 2859 44
Case C-450/06 Varec SA v. Belgium [2008] ECR I-581 49
Germany
BGH, 14 February 1958, BGHZ 26, 349 9
BGH, 23 September 1980, BGHZ 78, 274 9
OLG München, 28 May 2003, 21 U 1529/03 10
Italy
Cass 337/2008, Resp Civ Prev 9 (2008) 1916 176–177
New Zealand
Midland Metals Overseas Pte Ltd v. The Christchurch Press Co. Ltd [2002] 2 NZLR 289
113
Russia
Decree of the Constitutional Court of 4 December 2003, No. 508-O 173
Scotland
Kemp v. Magistrates of Largs 1938 SC 652 94
South Africa
Media 24 Ltd v. SA Taxi Securitisation (Pty) Ltd 2011 5 SA 329 (SCA) 172, 176
Switzerland
Schweizerisches Bundesgericht, 11 April 2012, BGE 138/2012 III 337 177
United States
Axton Fisher Tobacco Co. v. Evening Post Co., 169 Ky 64; 183 SW 269 176
TABLE OF LEG ISLATION
Australia
Defamation Act 2005
s. 9 176
Austria
Civil Code 1811, ABGB
§ 26 150
§ 26(2) 10, 170
§ 1293 20
§ 1323 10, 23
§ 1324 10
§ 1325 10
Croatia
Civil Obligations Act 2005
§ 19(2) 170
§ 19(3) 174
ECHR
European Convention on Human Rights (adopted 4 November 1950, entered into
force 3 September 1953) ETS 5; 213 UNTS 221
art. 1 30, 35
art. 2 40–41, 48, 53, 58, 82, 182
art. 3 40–41, 48, 53, 58, 82, 182
art. 4(1) 41
art. 4(2) 41
art. 5 41, 48, 52–53, 58, 82, 182
art. 5(1) 41
art. 5(3) 56, 59
xxvi
table of legislation xxvii
England: Statutes
Administration of Justice Act 1982
s. 1(1)(a) 127
Broadcasting Act 1990
s. 166(1) 108
Broadcasting Act 1996
s. 110(1)(b) 122
s. 111(1) 122
s. 111(2) 122
s. 113(3) 122
Civil Liability (Contribution) Act 1978
s. 2(1) 147
s. 2(2) 147
Companies Act 1948
s. 353(6) 138
Companies Act 1985
s. 716(1) 16
Companies Act 2006
s. 1 15
s. 3 17
s. 3(4) 17
s. 15(4) 17
s. 18 152
s. 20 152
s. 28 148
s. 125(1) 138
s. 154 151
s. 155(1) 155
s. 167 151
s. 168 157
s. 170(1) 152
s. 170(3) 152
table of legislation xxix
s. 171 153
s. 172 152
s. 172(1) 153
s. 172(1)(a) 153
s. 172(1)(b) 153
s. 172(1)(c) 153
s. 172(1)(e) 153
s. 172(2) 153
s. 172(3) 153
s. 173 153
s. 174 152–153
s. 174(2)(a) 155
s. 174(2)(b) 155
s. 175 153
s. 176 153
s. 177 153
s. 178 153
s. 179 152
s. 250 154
s. 251 154
s. 1024(1) 94
Consumer Protection Act 1987
s. 5 98
Copyright, Designs and Patents Act 1988
s. 77 104
s. 78(2) 105
s. 80 104
s. 80(1) 104
s. 80(2) 104
s. 84 104
s. 85 105
s. 94 105
s. 95 105
s. 97(2) 104
s. 103(1) 105
s. 176 105
s. 181 105
s. 191J 104
s. 205C 104–105
s. 205F 104–105
s. 205L 105
s. 205M 105
s. 205N 105
xxx table of legislation
s. 206(1) 105
s. 210A 105
s. 229 104
Coroners and Justice Act 2009
s. 73 116
Corporate Manslaughter and Corporate Homicide Act 2007 110, 148
County Courts Act 1984
s. 66(3)(b) 101
Defamation Act 1952
s. 3 100
Defamation Act 1996
s. 9 24, 114
Defamation Act 2013
s. 1 100, 111, 126
s. 1(1) 112
s. 1(2) 112
s. 2 100
s. 11 101
s. 12 24, 114
s. 13 24
Fatal Accidents Act 1976 22, 131
Financial Services and Markets Act 2000
s. 90A 148
sch. 10A 148
Human Rights Act 1998
s. 8(4) 98
Insolvency Act 1986
s. 212 153
Interpretation Act 1978
s. 5 88
s. 23 88
sch. 1 88
sch. 2, para. 4(5) 88
Judicature Acts 118
Law Reform (Miscellaneous Provisions) Act 1934
s. 1(1) 105
Limited Liability Partnerships Act 2000
s. 1(2) 16
s. 1(5) 16
s. 3(4) 17
Limited Partnerships Act 1907
s. 4(2) 17
table of legislation xxxi
European Union
Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic
Interest Grouping, OJ 1985 No. L199, 31 July 1985, p. 9
art. 1(2) 18
art. 1(3) 18
art. 20 157
Council Regulation (EC) No. 2157/2001 of 8 October 2001 on the Statute for a
European Company, OJ 2001 No. L294, 10 November 2001, p. 1
art. 16(1) 18
France
Civil Code 1804
art. 1382 12
Germany
Basic Law
§ 19(3) 1949 170
Civil Code 1899, BGB
§ 253 10
§ 253(2) 9, 170, 175
Second Act on the Amendment of Provisions Pertaining to the Law of Damages, BGBl
2002 I 2674 9
West German Constitution
art. 1, para. 1 9
art. 2 9
International Law
International Covenant on Civil and Political Rights of the United Nations (adopted
16 December 1966, entered into force 23 March 1976), 999 UNTS 171
art. 17 48
table of legislation xxxiii
Ireland
Defamation Act 2009
s. 12 175
New Zealand
Defamation Act 1992
s. 6 113
Poland
Civil Code 1964
art. 448 173
Portugal
Civil Code 1966
art. 484 174
Russia
Civil Code 1994
art. 151 173
Slovenia
Obligations Code 2001
art. 183 174
The Netherlands
Civil Code 1990
art. 6:106 174
PAR T I
Background
1
Introduction
1
T. C. Spelling, A Treatise on the Law of Private Corporations, 2 vols. (New York: L. K. Strouse
& Co. Law Publishers, 1892), vol. 2, p. 1058.
3
4 background
2
A. Tettenborn, Halsbury’s Laws Commentary on Damages (London: LexisNexis Butter-
worths, 2014), vol. 29, para. 317.
3
06.04.2000, no. 35382/97.
4
C. A. Gearty, ‘European Court of Human Rights and the Protection of Civil Liberties: An
Overview’, Cambridge Law Journal, 52(1) (1993), 89–127, 93.
5
Adopted 4 November 1950, entered into force 3 September 1953, ETS 5; 213 UNTS 221.
introduction 5
6
See among others, The Law Commission and the Scottish Law Commission, Damages
under the Human Rights Act 1998, Law Com 266/Scot Law Com 180 (2000), para. 3.4.
W. V. H. Rogers, ‘Comparative Report’ in W. V. Horton Rogers (ed.), Damages for
Non-Pecuniary Loss in Comparative Perspective (Wien/New York: Springer, 2001), no. 68;
A. P. Lester and D. Pannick (eds.), Human Rights Law and Practice, 3rd edn (London:
LexisNexis Butterworths, 2009), para. 2.8.4; See also K. Reid, ‘European Court of Human
Rights: Practice and Procedure’ in J. Simor and B. Emmerson (eds.), Human Rights Practice
(London: Sweet & Maxwell, looseleaf), para. 19.063; D. Shelton, Remedies in Interna-
tional Human Rights Law, 3rd edn (Oxford University Press, 2015), p. 2; R. Clayton and
H. Tomlinson, The Law of Human Rights, 2nd edn, 2 vols. (Oxford University Press, 2009),
vol. 1, para. 21.30; the various contributions in A. Fenyves, E. Karner, H. Koziol and
E. Steiner (eds.), Tort Law in the Jurisprudence of the European Court of Human Rights
(Berlin/Boston: De Gruyter, 2011).
7
Practice Direction on Just Satisfaction Claims (2016), para. 3.
8
Developments in other common law countries will feature where appropriate.
9
Bosworth-Toller’s Anglo-Saxon Dictionary Online defines ‘bót’ as ‘amends, reparation,
compensation for injury’.
6 background
be rendered to the King or community for the public wrong which had
been committed (i.e. to buy back the peace) – as the were was paid to the
injured person or his family for the private injury. The loss of an eye or
a leg, among other injuries, demanded the highest bót – fifty shillings.10
Lower down the tariff was loss of liberty: ‘If any one bind a freeman, let
him make “bót” with xx shillings.’11 These and other passages reveal how,
as early as the first part of the seventh century, English law was concerned
with the remedy of losses of what modern lawyers consider analogous to
damages for non-pecuniary loss.12 There were subtle differences, how-
ever: first, the amount of the award then was largely dependent on the
social rank of the victim; second, it was the responsibility of the wrong-
doer’s kinsmen to intercede if the former was unable to make bót; and
third, unlike most modern awards of damages for non-pecuniary loss, the
bót mostly compensated the injury itself (e.g. loss of a leg) as opposed to
its consequences (e.g. pain and suffering). Pecuniary ‘dooms’ were also
laid down.
1/7 It was not until the twelfth century, however, that damages as we know
them today supplemented the old system of bót payments and it was
also at this time that juries were used as fact finders; by 1773 juries were
awarding damages for non-pecuniary loss, inter alia, for pain and loss of
honour.13 Despite the large awards made by juries, who were observed to
have been often ‘roused to indignation by partisan advocacy’,14 courts held
themselves incompetent to review their verdicts except in the case of may-
hem or where the latter were mistaken or had misbehaved themselves.15
Juries – composed of butchers, bakers and candlestick-makers – were
considered better able to gauge human pain and suffering; better able
to understand, appreciate and estimate the nature and extent of such
damages than the most learned and eminent judge of appellate courts,
particularly as juries saw and heard the witnesses, while courts (on appeal
10
S. Turner, The History of the Anglo-Saxons from the Earliest Period to the Norman Conquest,
7th edn, 3 vols. (London: Longman, Brown, Green and Longmans, 1852), vol. 2, p. 445.
11
F. W. Maitland and F. C. Montague, A Sketch of English Legal History (New York and
London: Putnam, 1915), p. 195.
12
See how similar damage is assessed today in The Judicial Studies Board, Guidelines for
the Assessment of General Damages in Personal Injury Cases, 13th edn (Oxford University
Press, 2015).
13
J. O’Connell and K. Carpenter, ‘Payment for Pain and Suffering through History’, Insurance
Counsel Journal, 50(3) (1983), 411–417, 412.
14
Broome v. Cassell & Co. Ltd (No. 1) [1972] AC 1027, 1128 per Lord Diplock.
15
M. Lobban, ‘Tort’ in W. Cornish et al. (eds.), The Oxford History of the Laws of England,
13 vols. (Oxford University Press, 2010), vol. 12, pp. 899–902.
introduction 7
at least) got their impressions from printed transcripts which often lose
much by transposition.16 This state of affairs was compounded by the
vague and uncertain principles of compensation for personal suffering
at the time.17 Thus, the systemic chaos of the common law in times
past as a result of the role of juries – accompanied by the reluctance
of English judges to interfere, despite their competence and security via
tenure – may well have contributed to the broad acceptance of dam-
ages for non-pecuniary loss in England today. Similar recognition is due
independently to the common law itself which, in contrast to some civil
systems, encouraged judges to shape and develop the law in a pragmatic
fashion. It may well be that other factors also played decisive roles. What
is certain, however, is that damages for non-pecuniary loss continue to be
a well-established feature of English law today and their development is
singular. As early as 1893, the Court of Appeal in South Hetton Coal Com-
pany Ltd v. North-Eastern News Association Ltd 18 unanimously rejected
the argument that a trading company could not recover such damages.
While there are obvious differences between individuals and companies,
this did not justify the denial of a remedy to companies. It is this receptive
feature of damages for non-pecuniary loss that qualifies English law as a
favourable comparator for the purpose of this research.
1/8 That said, a glance at recent reforms in England will at once correct
any misconceived sense of flawlessness of English law with respect to this
head of damages. Like statutory laws embarked upon as and when the
need arises, the common law is a heterogeneous mass of rulings, some of
which becomes inadequate especially in light of careful historical studies.
This fuelled a call for the legislature to abandon archaic rules on the
one hand and a plea for caution against expanding awards of damages
for non-pecuniary loss to companies in an unprincipled manner on the
other. Such reforms are thus another reason for the focus on English law.
16
F. A. Taell, ‘Right of Court to Interfere with the Determination of the Amount of Damages
Fixed by a Jury’, Central Law Journal, 61 (1905), 286–289, 286.
17 18
Huckle v. Money (1763) 2 Wilson KB 205, 206 per Pratt CJ. [1894] 1 QB 133.
8 background
19
F. Pollock and F. W. Maitland, The History of English Law before the Time of Edward I,
2 vols. (Cambridge University Press, 1898), vol. 1, p. 48.
20
H. Stoll, ‘General Report on the Civil Law Countries’ in Council of Europe (ed.), Colloquy
on European Law: Redress for Non-Material Damage (1970), p. 24.
21
Stoll, ‘General Report on the Civil Law Countries’, p. 24.
22
Referred to in H. Stoll, ‘Consequences of Liability: Remedies’ in A. Tunc (ed.), International
Encyclopedia of Comparative Law, 17 vols. (Mohr Siebeck, 1983), vol. 11(2), para. 8-36,
fn 254.
23
‘In the case of persons of a higher class, the wrongfully inflicted pain could only be taken
into account in determining the proper statutory punishment’: Stoll, ‘General Report on
the Civil Law Countries’, p. 24.
24
See Stoll, ‘Consequences of Liability: Remedies’, para. 8-36 for specific references.
25
U. Magnus and J. Fedke, ‘Germany’ in W. V. Horton Rogers (ed.), Damages for Non-
Pecuniary Loss in Comparative Perspective (Wien/New York: Springer, 2001), no. 8.
introduction 9
26
J. H. Merryman and R. Pérez-Perdomo, The Civil Law Tradition: An Introduction to the
Legal Systems of Europe and Latin America, 3rd edn (Stanford University Press, 2007),
p. 36.
27
Magnus and Fedke, ‘Germany’, no. 1.
28
See the Herrenreiter decision: BGH, 14 February 1958, BGHZ 26, 349. As in a number
of civil systems, redress was available under criminal law and in addition damage of
a non-pecuniary nature could be alleviated by restitution in kind, e.g. the publication
of a judgment was considered capable of vindicating a claimant’s reputation in whole
or in part and the defendant could be made to retract a defamatory statement if its
continued publication affected another’s honour: Stoll, ‘General Report on the Civil
Law Countries’, pp. 36–37. G. Wagner, ‘Germany’ in H. Koziol and K. Warzilek (eds.),
The Protection of Personality Rights against Invasions by Mass Media (Wien/New York:
Springer, 2005).
29
Zweites Gesetz zur Änderung schadensersatzrechtlicher Vorschriften, BGBl 2002 I 2674.
30
BGH, 23 September 1980, BGHZ 78, 274. See also S. Martens and R. Zimmermann,
‘Germany’ in B. Winiger, H. Koziol, B. A. Koch and R. Zimmermann (eds.), Digest of
European Tort Law, 2 vols. (Berlin/Boston: De Gruyter, 2011), vol. 2, 24/2 nos. 1–3 and
10 background
J. Oster, ‘The Criticism of Trading Corporations and their Right to Sue for Defamation’,
Journal of European Tort Law, 2 (2011), 255–279, 257–258.
31
OLG München, 28 May 2003, 21 U 1529/03.
32
E. Karner and H. Koziol, ‘Austria’ in W. V. Horton Rogers (ed.), Damages for Non-Pecuniary
Loss in Comparative Perspective (Wien/New York: Springer, 2001), no. 1.
33
OGH in G1U Neue Folge (G1U New Series, G1UNF), no. 4185. See Karner and Koziol,
‘Austria’, no. 1.
34 35
Karner and Koziol, ‘Austria’, no. 3. Karner and Koziol, ‘Austria’, no. 4.
36
See E. Karner, ‘Austria’ in B. Winiger, H. Koziol, B. A. Koch and R. Zimmermann (eds.),
Digest of European Tort Law, 2 vols. (Berlin/Boston: De Gruyter, 2011), vol. 2, 24/3
no. 3.
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The Whirlpool Rapids begin within sight of the Falls. The gorge narrows to
300 feet and the current rushes onward at a speed of 40 miles an hour and
the foam-crested waters are entrancingly beautiful.
High-Resolution
THE WHIRLPOOL.
The Whirlpool is about two miles below the Falls and is the greatest known
river pocket. Into it the Rapids plunge in all their fury, and a gyrating motion
is given the entire body of water. Here the river turns at right angles, causing
one of the most mysterious and fascinating features of this mighty stream of
water.
High-Resolution
INCLINED RAILWAY. AMERICAN FALL. LUNA ISLAND. CAVE OF THE WINDS.
GOAT ISLAND. HORSESHOE FALL. TABLE ROCK. VICTORIA PARK.