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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> TUI UK Ltd v Morgan [2020] EWHC 2944 (Ch) (09 November 2020) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2020/2944.html Cite as: [2020] EWHC 2944 (Ch) |
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Appeal No CF036/2020CA |
BUSINESS AND PROPERTY COURTS IN WALES
CHANCERY APPEALS
On appeal from the order of His Honour Judge Jarman, QC, sitting in the County Court at Cardiff, dated 23 June 2020
The Cardiff Civil Justice Centre 2 Park Street Cardiff CF10 1ET |
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B e f o r e :
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TUI UK LIMITED |
Appellant (Defendant in the proceedings below) |
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- and - |
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LYNN MORGAN |
Respondent (Claimant in the proceedings below) |
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Mr Ian Skeate and Mr Andrew McKie (instructed by Wilkin Chapman LLP) for the Respondent
Hearing date: 19 October 2020
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Crown Copyright ©
Mr Justice Marcus Smith:
A. Introduction
"15. Liability of other party to the contract for proper performance of obligations under contract
(1) The other party to the contract is liable to the consumer for the proper performance of the obligations under the contract, irrespective of whether such obligations are to be performed by that other party or by other suppliers of services but this shall not affect any remedy or right of action which that other party may have against those other suppliers of services."
(1) In Section B, I consider the relevant legal principles.
(2) In Section C, I set out the relevant parts of the Judgment, so far as they are material to this appeal.
(3) In Section D, I describe and consider TUI's various grounds of appeal against the order of the Judge.
B. The law
"…the issue is thus whether…[the package tour operator] undertook no more than that they would arrange for services to be provided by others as their agents (where the law would imply a term into the contract that they would use reasonable care and skill in selecting those other persons) or whether they themselves undertook to supply the services when, subject to any exemption clause, there would be implied into the contract a term that they would as suppliers carry out the services with reasonable care and skill…"
"A contracting party can in the case of many contracts enter into an arrangement by which some other person may perform for him, so far as he is concerned, the obligations of the contract, and the other contracting party will be obliged to accept that performance if it is performance in accordance with the terms of the contract. The contracting party will, however, be liable for any breach that may happen, and the other contracting party is not bound or, indeed, entitled to sue the substituted person for breach of contract, although there may of course be a remedy in tort, e.g. where the substituted person negligently damages or causes the loss of goods entrusted to him. This is technically known as vicarious performance and it is "quite a mistake to regard that as an assignment of the contract: it is not."
"What is the duty of a tour operator in a situation such as this? Must he refrain from sending holidaymakers to any hotel whose characteristics, in so far as safety is concerned, fail to satisfy the standards which apply in this country? I do not believe that his obligations in respect of the safety of his clients can extend this far. Save where uniform international regulations apply, there are bound to be differences in the safety standards applied in respect of the many hazards of modern life between one country and another. All civilised countries attempt to cater for these hazards by imposing mandatory regulations. The duty of care of a tour operator is likely to extend to checking that local safety regulations are complied with. Provided that they are, I do not consider that the tour operator owes a duty to boycott a hotel because of the absence of some safety feature which would be found in an English hotel unless the absence of such a feature might lead a reasonable holidaymaker to decline to take a holiday at the hotel in question. On the facts of this case I do not consider that the degree of danger posed by the absence of safety glass in the doors of the Vanninarchis Beach Hotel called for any action on the part of the defendants pursuant to their duty to exercise reasonable care to ensure the safety of their clients."
"…[w]hat was said in Wilson v. Best Travel Ltd did not purport to be an exhaustive statement of the duty of care, and it does not seem to me that compliance with local safety regulations is necessarily sufficient to fulfil that duty. That was evidently also the view taken in Codd [v. Thomsons Tour Operators Limited],[16] where the court found there to be compliance with local safety regulations but nevertheless went on to consider other possible breaches of the duty of care."
(1) The question before the court involves consideration of the alleged breach of an obligation governed by English law, but performed abroad. No questions of private international law arise.
(2) However, the court will not automatically apply the standards that would pertain if the performance were in England. To the contrary, the court will regard the standards prevailing in the place of performance as "a very important signpost"[17] in determining the content of the obligation.
(3) If it can be shown that the standards prevailing in the place of performance have been infringed, then it seems to me that the organiser's English law obligation to exercise reasonable skill and care will almost inevitably also be breached.
(4) However, the converse does not, as it seems to me, necessarily follow. It may well be that even if the standards prevailing in the place of performance have been complied with, it does not necessarily follow that the organiser will escape liability. The standards prevailing in the place of performance may, for no justifiable reason, fall so far below either internationally accepted or English standards that the organiser assumes an obligation to exercise reasonable skill and care that is informed not by the local standards, but by other standards. I stress that the obligation on the organiser is to exercise reasonable skill and care, and that whilst standards (be they local, English or international) will be important in articulating what is reasonable, they are not the last word.
(5) In short, I consider that there is an asymmetry in the obligation assumed by an organiser:
(a) If the standards prevailing in the place of performance are breached, the term implied by section 13 of the 1982 Act will likely also have been breached;
(b) On the other hand, even if the standard prevailing in the place of performance have been complied with, that is no more than a very important signpost that the term implied by section 13 of the 1982 Act has not been infringed.
(6) That leaves cases like the present case, where it is unclear what the standards prevailing in the place of performance actually are. As can be seen from the Judgment, this was the question that most troubled the Judge. He found that:
(a) Had the accident happened in England or Wales, then TUI's duty to exercise reasonable skill and care would likely have been breached.[18]
(b) The safety regulations in Mauritius as to external lighting applicable in hotels was unclear.[19]
(7) Whilst the burden of proving a breach of the implied term of reasonable skill and care falls on the claimant – here, Mrs Morgan – that burden does not necessarily oblige the claimant to demonstrate what were the locally applicable standards in order to succeed in the claim, although of course such standards are an important signpost. In particular, where the local standards are unclear, the court is not going to require the claimant to incur and waste time and expense in seeking to prove that which is vague, nebulous or non-existent. In such a case, the claimant is perfectly entitled to have resort to other material in order to establish that the obligation to exercise reasonable skill and care has been breached.
(8) In the course argument, I put to Mr Atwal (counsel for TUI) what would happen if there was no identifiable prevailing standard that could be ascertained by reference to, say, safety regulations at the place where the accident occurred. His contention was that, in those circumstances, the claimant's case must – absent the exceptional case – fail. In short, the absence or unascertainability of local standards would be fatal to the claimant unless (to quote from Phillips J's judgment in Wilson) the absence of such a safety standard might lead a reasonable holidaymaker to decline to take a holiday at the hotel in question.[20]
(9) I do not accept that contention. Although "local standards" will doubtless be a "very important signpost" where they are readily ascertainable by reference to – say – a local law or regulation, in cases where there is no readily ascertainable standard it will be for the claimant, as in Lougheed, to establish the content of the duty by leading other evidence.[21]
C. The Judgment
(1) At [13], the Judge found that "the accident spot…was not pitch dark, it was enough to make it very difficult to see the dark wooden sunbed, especially when someone was walking from the lit pathway onto the unlit sun terrace. If it were necessary to put a figure on it, in my judgment it is likely to have been a little less than 0.24 lux, as that is the figure for the nearest point going back to the lit pathway".
(2) At [17], the Judge found that it was the lack of lighting that caused the accident. He put it in the following terms:
"It does not follow from that latter finding [i.e. that lighting had been installed after the accident at the accident spot] [that] the accident was caused by the lack of lighting on or adjacent to the sun terrace a[t] the time of the accident. On the basis of all my findings of fact above, however, I am satisfied that it was so caused".
"Mr Magner accepted in cross-examination that this standard relates to minimum luminosity at surface level for hazard perception in worst conditions such where there is smoke. He accepted that the standard did not apply strictly to what lighting would be required at the accident spot, but it refers to whether the public or workers have access. He said that the standard is frequently used in construction to give a minimum for such hazard perception. The minimum is 0.5 lux, and this is one of the few universal principles. Where, as in Mauritius, there is no specific local standard, he said that this is what is used. He said that he was not surprised that there is no such local standard in Mauritius, as it is 'behind' the UK. He could not name a specific hotel where it has been specifically adopted but said he had been involved in a number of cases in Mauritius where it was used. In his report, he says that his local enquiries and analysis are based upon a combination of case-specific enquiries and his collective experience of Mauritian standard in practice in that county since 2002."
"In my judgment, given that the ISO standard relates to emergency lighting and therefore to potential life-threatening situations, the evidence of Mr Magner that in lighting terms this was one of the few universally acceptable principles is not surprising and I accept it. It is unlikely in my judgment that hotels in Mauritius are free to provide no emergency lighting at all".
"This is not the sort of case as in Wilson, where there is a specific local standard which is lower than, for example, the prevailing British Standard. It is a case of coming to a conclusion on the limited evidence before me of whether there is likely to be a prevailing local standard and if so, what it is likely to be. I prefer and accept the evidence of Mr Magner on this point. On the evidence before me, it is likely that the standard relating to the provision of lighting on the sun terrace was likely to be the minimum set by the ISO standard. Having come to that conclusion, I gain some comfort in it from the conversation between Mrs Morgan and Mr Chiarel some days later, from the contemporaneous reports and from the fact that lighting was then provided adjacent to the sun-terrace."
D. Consideration of the grounds of appeal
(a) The grounds of appeal
(1) The Judge misunderstood the ISO Standard as setting minimum standards of emergency or general lighting in external areas.
(2) The Judge was wrong to find that the ISO Standard set a universal principle in respect of emergency or general lighting.
(3) The Judge should not have felt bound to infer a local standard on the basis of the limited evidence before him and, to the extent that he did, he was wrong to infer a local standard from the fact that the Hotel installed additional lighting after the accident. Instead, the Judge should have found that the local standard was not proven.
(4) There was no good evidence before the Judge to the effect that the deficiency in lighting would have made any difference. That is, Mrs Morgan had not proved that but for the 0.26 lux difference in lighting, the accident would not have happened.
(5) The structure of the Judgment shows that the Judge pre-determined the issue of liability before giving consideration to the issue of local standards. The issue of local standards is fundamental to the resolution of package travel cases and should have been at the forefront of the judgment.
I consider these various grounds below.
(b) Grounds 1 to 3
(1) The Judge did not misunderstand the ISO Standard, but was perfectly aware of its nature, ambit and applicability. Ground 1 accordingly fails.
(2) The Judge was entitled to find, on the evidence before him, that the ISO Standard set an irreducible minimum as to emergency lighting, although I am not sure that the Judgment actually went as far as this. As I have noted, the Judge did not simply apply the ISO Standard to the accident site. He was careful to draw a distinction between the standard set by the ISO Standard and the duty on TUI (performing its contractual obligations vicariously by way of the Hotel) to light the accident area to the same minimum standard. It follows that Ground 2 fails.
(3) The Judge did not, when the Judgment is properly considered, infer anything about local standards from events after the accident. Ground 3, therefore fails.
(c) Ground 4
(d) Ground 5
E. Disposal
Note 1 The Regulations have now been revoked and replaced with the Package Travel and Linked Travel Arrangements Regulations 2018 (the “2018 Regulations”), which implement Directive 2015/2302/EU. The Regulations continue to apply to those contracts concluded thereunder, i.e. to contracts concluded before 1 July 2018: see Regulations 37(2) and 1(3). [Back] Note 2 [1996] 1WLR 38 at 41-42. Emphasis added. [Back] Note 3 See, e.g., Recitals (2) and (3) to the Directive. [Back] Note 4 See Recital (17) and Article 5(1) of the Directive. [Back] Note 5 Beale (ed), Chitty on Contracts, 33rd ed (2018) at [19-082]. [Back] Note 6 SeeHone v. Going Places Leisure Travel Limited, [2001] EWCA Civ 947 at [15] (per Longmore LJ). [Back] Note 7 SeeEvans v. Kosmar Villa Holidays Ltd, [2007] EWCA Civ 1003 at [23] (per Richards LJ). [Back] Note 8 [1993] 1 All ER 353. [Back] Note 11 See, for example, Lougheed v. On The Beach Limited, [2014] EWCA Civ 1538 at [5] (per Tomlinson LJ);Japp v. Virgin Holidays Limited, [2013] EWCA Civ 1371 at [5] (per Richards LJ). [Back] Note 12 A claim in tort was pleaded by Mrs Morgan, but appears not to have been pressed at trial and did not feature in argument before me. Accordingly, the applicable law to this cause of action was not specifically considered either before Judge Jarman, QC or before me. [Back] Note 13 Although TUI’s standard form terms and conditions were pleaded by TUI, I was not taken to these provisions in any detail. I proceed on the basis – which was not contested – that English law is the applicable law in this case. [Back] Note 14 [2007] EWCA Civ 1003. [Back] Note 15 See alsoGoldbourn v. Balkan Holidays & Flights Limited, [2010] EWCA Civ 372 at [19] (per Leveson LJ). [Back] Note 16 Court of Appeal (Civil Division) Transcript No 1470, 2000. [Back] Note 17 To quote Leveson LJ inGoldbourn v. Balkan Holidays & Flights Limited, [2010] EWCA Civ 372 at [19]. [Back] Note 18 Judgment at [18]. [Back] Note 19 See [21]ff of the Judgment. It was for this reason, that the Judge had to have recourse to international standards. [Back] Note 20 See Wilson at paragraph 14 above. [Back] Note 21 What that evidence might be will turn on the individual case and is, in essence, a question of fact, not law. In Lougheed itself, evidence as to the general practice or standard in other establishments in the same country was led: see [26]-[27]. [Back] Note 22 Judgment at [26]. [Back] Note 23 Judgment at [29]. [Back] Note 24 Indeed, it appeared to be the case that Mauritius had not itself adopted the ISO Standard, albeit that (i) Mauritius was a member of the International Standards Organisation and (ii) the ISO Standard had been made by the International Standards Organisation. [Back] Note 25 See also [26] of the Judgment. [Back] Note 26 There is a duty on counsel to draw to the judge’s attention such omissions, so that he or she can deal with such points prior to any appeal. There was no suggestion that the Judgment contained any such omission or that any such point had been made to the Judge in this case. [Back]