Hardie & Lane v Chiltern

JurisdictionEngland & Wales
Date1928
Year1928
CourtCourt of Appeal
[IN THE KING'S BENCH DIVISION AND IN THE COURT OF APPEAL.] HARDIE AND LANE, LIMITED v. CHILTERN AND OTHERS.F1 SAME v. SAME. [1926. H. 3495.] 1927 April 27; May 3, 10. 1927 June 21, 22, 23, 29. FRASER J. LORD HANWORTH M.R., SARGANT, and LAWRENCE L.JJ.

Trade Union - Unregistered - Certificated - Action of Tort against three Defendants personally and as representing Trade Union - Prohibition - Trade Union of “workmen or masters” - Trade Union for imposing restrictive Trade Conditions - R. S. C., Order XVI., r. 9 - Trade Disputes Act, 1906 (6 Edw. 7, c. 7), s. 4, sub-s. 1.

An association of motor dealers and manufacturers, being an unregistered trade union certified under the Trade Union Act, 1913, had for its object the protection of the motor industry and the interests of manufacturers, sellers and users of motor goods. The plaintiffs, who were members of the association, brought an action against three of the other members who were named twice over and were sued “on their own behalf and on behalf of all other members of the association” for damage alleged to have been caused to the plaintiffs by the conspiracy and fraud of the defendants, as the result of which the plaintiffs were induced to sell a motor oar at a price below that to which the association had granted protection, thereby breaking a by-law of the association, and were then coerced under a threat of having their names inserted in the stop list of the association to pay to the defendants a sum of money. The defendants were not trustees of the association, which had in fact no trustees:—

Held, that the plaintiffs were not entitled under Order XVI., r. 9, or otherwise, to maintain the action against the defendants as representative of the other members of the association, there being no ground for saying that the members of the association had the same interest in the action or the defence to it.

Decision of Fraser J. affirmed.

Duke of Bedford v. Ellis [1901] A. C. 1; Markt & Co. v. Knight Steamship Co. [1910] 2 K. B. 1021; Walker v. Sur [1914] 2 K. B. 930; London Association for the Protection of Trade v. Greenlands [1916] 2 A. C. 15; Mercantile Marine Service Association v. Toms [1916] 2 K. B. 243. Principles considered and applied.

A plaintiff cannot abandon his claim in tort and still pursue his claim for money had and received which depends upon the alleged tort.

Brocklebank, Ld. v. The King [1925] 1 K. B. 52 applied.

Sect. 4, sub-s. 1, of the Trade Disputes Act, 1906, applies to trade unions generally and is not limited or restricted in its application to trade unions of “workmen or masters,” so as to exclude a trade union, such as the above mentioned association, whose object is “the imposing of restrictive conditions on the conduct of any trade or business” which was a “statutory object” under s. 1, sub-s. 2, of the Trade Union Act, 1913, and such a trade union, equally with trade unions of workmen or masters, is entitled to the immunity from actions of tort given by the section.

Vacher & Sons, Ld. v. London Society of Compositors [1913] A. C. 107 applied.

The naming twice over on the record of the same defendants to an action, first in their personal capacity, and secondly in a representative capacity, with the consequent appearance of two sets of counsel at the hearing, is altogether irregular.

APPEAL from two orders of Master Jelf.

The Motor Trade Association was an unregistered trade union the nature and constitution of which were set forth in its printed “Objects, Regulations and Bye-laws.”

In that document the objects for which the Association was stated to be established, so far as relevant, were: “To encourage, promote and protect the motor industry in the United Kingdom and throughout the world, and generally to watch over and protect the interests of manufacturers, wholesalers, retailers and users of motor goods and of others having commercial relationship with the motor industry.”

The Regulations, so far as relevant, were as follow:—

3. The qualification of membership of the Association shall be that the proposed member is, in the opinion of the Council, eligible for membership, and engaged in the motor industry. ….

4. The Association shall be divided into the following classes: (1.) Manufacturers of, or sole concessionaires of, British motor vehicles. (2.) Manufacturers of, or sole concessionaires of, foreign motor vehicles. (3.) Manufacturers of, or sole concessionaires of, other motor goods. (4.) Factors, as appearing on Factors' List of the Society of Motor Manufacturers and Traders, Ld. (5.) Wholesale accessory dealers and manufacturers' agents. (6.) Insurance companies transacting motor business. (7.) Local representatives of members elected in classes 1, 2, 3, 4, 5 and 6. (8.) Contracting motor car agents. (9.) Engineer repairers and/or non-contracting dealers in motor cars. (10.) Motor car dealers. (11.) Accessory dealers (Retail). (12.) Persons, companies or firms who in the opinion of the Council are qualified under Regulation 3 for membership at a subscription less than that payable in class 9.

8. The business of the Association shall be controlled by a Council consisting of a President and sixty-six elected members (of whom sixteen shall be members in class 1, eight shall be members in class 2, nine shall be members in class 3, nine shall be members in classes 4 and 5, and twenty-four shall be members in classes 8, 9, 10 or 11 (of whom two shall be members in class 10), and not more than five co-opted members.) ….

9. The decisions of the Council expressed by resolution shall be binding on all members of the Association (and persons dealing with them subject to its rules and regulations), and shall not, except as otherwise provided by these regulations, be subject to review or rescission by general meeting, it being the intention that by the annual election of the Council the full power of conducting the affairs of the Association shall be vested in such Council until the next annual election, but nothing in this rule shall prevent the Council or President (or the Secretary acting on the requisition in writing of not less than twenty members) summoning a general meeting of the Association at any time. Minutes of a meeting of the Council entered in the minute book and signed by the chairman of such or any succeeding meeting shall be conclusive evidence of all resolutions of the Council.

10. The quorum for a general meeting of the Association shall be fifteen members personally present, and the quorum for a Council meeting shall be ten.

11. All members of the Council shall retire annually. In the case of a member whose membership is vacated by death, resignation, or other cause, the Council may elect a member to fill his place.

14. No member of the Motor Trade Association shall incur any liability beyond the payment of the annual subscription …. and none of the said members, officers, and servants shall be answerable for any act or default of any other of them or for joining in receipts for the sake of conformity, or for any loss, misfortune or damage which may happen in the execution of his office or in relation thereto, except the same shall happen by his own wilful act or default.

16. The funds of the Association shall be completely under the control of the Council, and it shall not be necessary in any case in which the Council so directs for the particulars of any specified payment to be entered or minuted. In such a case a minute that a sum be paid to a party therein named under this regulation shall be sufficient and conclusive evidence that it was properly so paid and applied within the objects of the Association, provided that no money shall at any time be applied for parliamentary or municipal electioneering purposes or connected with the holding of public offices.

The By-laws, so far as relevant, were as follow:—

1. On proof to the satisfaction of the Council that any company, association, firm, or person (all of whom are hereinafter referred to as “person”) has offered or advertised or sold any proprietary price maintained article at a price above or below the price fixed by the manufacture, or concessionaire to which the Association has granted protection, the Council may place the name of such person on a list to be called the “stop list,” and give notice thereof to all members of the Association or otherwise. This bye-law shall cover hire and hire — purchase transactions in accordance with regulations issued from time to time by the Council.

3. No member of the Association shall supply any motor goods to, or have any trade relations in regard to motor goods with any person whose name is on the stop list so long as the name of such person remains on the stop list. Provided that this Bye-law shall not prevent the supply of any motor goods, or any trade relations in regard to motor goods under any contract bona-fide entered into by and binding upon the member (and which he has no power to terminate), and which contract is existing at the time of the first publication of the name of such person on the stop list.

By-laws 4, 5, and 6 dealt with the powers of the Council in regard to the stop list.

On June 3, 1914, the Association obtained a certificate in the following terms: “Trade Union Act, 1913. Certificate under s. 2, sub-s. 3. I hereby certify that the Motor Trade Association is a trade-union within the meaning of the above Act. Given this 3rd day of June, 1914. (Sgd.) G. Stuart Robertson, Chief Registrar.”

The plaintiffs, Messrs. Hardie & Lane, Ld., were agents for the sale of and dealers in motor cars, and in February, 1920, they became members of the Association.

On October 28, 1926, the plaintiffs brought the present action against the defendants, John Chiltern, Harry Arnold Bennett, and Percy Ingram Denyer, and the said John Chiltern, Harry Arnold Bennett, and Percy Ingram Denyer sued on their own behalf and on behalf of all other members of the Motor Trade Association.

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    ...find it necessary to answer it; for this reason. I. T. F.. say that the answer is to be found in the decision of this court in Hardie & Lane Ltd. v. Chiltern (1928) 1 KB 663. The plaintiffs, while submitting that that authority is distinguishable because it was based on the different words......
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2 books & journal articles
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