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RDG
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Steven Elliott
asks:
I wonder if anyone can help me with
the Cadbury
Schweppes decision. My view is that since FBI could and would have developed
a competing product before the 1983 end of the licence period, its wrong
did not cause CS any loss. Does this view fail to distinguish between the wrong and the injury ?
In tort, a builder might have been negligent this day last year but the
building might not have fallen down on top of me until today. The wrong
occurred last year, the injury occurred today, and last year's wrong caused
today's injury (in the sense that but for the builder's negligence, the
house would not have fallen down).
Similarly, if, as seems correct, the breach of confidence
consisted in the misuse of the information, the wrong occurred when the
information was misused, that is to say, a year before marketing of the
competing product began. However, it was not until the marketing began
a year later that the injury occurred. The wrong - the breach of confidence
- occurred last year, the injury occurred a year later, and last year's
wrong caused today's injury (in the sense that but for the breach of confidence,
the *particular competing* product which was developed would not have
been developed).
Notwithstanding the parentheses, I think that there is something in the
causation point:
If FBI had not used the secret recipe it would
nonetheless have been able to produce an equivalent product in the same
time and also before the expiry of the licence in 1983, and would have
done so. It questions whether there is in fact any loss the following
year because the same outcome could have been reached in a non-wrongful
way. But even if the builder could have built an unsafe house without
being negligent, it doesn't change the fact that he was negligent in this
case and that his negligence caused my injury. As I understand the common
law (and of course it is only a partial understanding subject to correction)
the proper comparison is simply the state of facts without the relevant
wrong; there is no warrant to substitute non-negligent action leading
to the same outcome; and without the negligence, the house should not
have been unsafe. Similarly, even if a manufacturer can make a drug with
unfortunate side-effects without being negligent doesn't diminish its
responsibility if it is negligent in its manufacture of a batch which
causes the same side effects. On the facts without the negligence, and
without substituting non-negligent action leading to the same outcome,
the drug should not have had the side effect.
Likewise here just because FBI could have reached the
same result without breaching confidence doesn't alter the fact that they
did breach confidence and that the breach of confidence resulted in losses
on the facts. On the facts without the relevant wrong, and without substituting
the non-breaching development of a similar (or even exactly the same)
competing product, the situation would simply have been the marketing
of Clamato without a competitor.
[I said that it was my belief that the common law simply
compared with the actual outcome the situation which would have obtained
without the relevant wrong. This examination of what the state of facts
would have been without the relevant wrong is characterised, by German
law, as the elimination method of testing causation. However, German law
goes further and proposes also a substitution test of causation. If I
am wrong, and the common law too applies a substitution test, then we
might learn from the German law as to when each is appropriate: it applies
the elimination method to acts and the substitution method to omissions,
substituting lawful action for omission and comparing the outcome with
what had actually occurred (all of this is discussed in Markesinis _The
German Law of Torts. A Comparative Introduction_). Steven Elliott's objections
would apply substitution to acts, which even German law seems not to do.]
Finally, I have to pose the question which has puzzled me since I became
familiar with the case: why would anyone want to drink Clamato (or a competitor)
anyway ? :)
Eoin.
EOIN O'DELL <== Previous message Back to index Next message ==> |
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