A lesson on English law post-Brexit from the Court of Appeal – JD Supra

English lawyers and law students should be getting to grips with a whole new area of English law: Retained EU law. In this decision, the Court of Appeal explains all about Retained EU law and provides a roadmap for anyone having to consider it. The ruling also explains a rather unusual provision in the EU (Future Relationship) Act 2020 which can modify automatically English law that is not consistent with the EU/UK Trade & Cooperation Agreement (TCA): Lipton & anr v BA City Flyer Ltd [2021] EWCA Civ 454

This article focusses on the Retained EU law aspects of the decision rather than the detail of the underlying dispute, but for context the claimant, Mr Lipton, claimed compensation for a cancelled flight from Milan to London under an EU regulation, Regulation (EC) 261/2004. The airline claimed that no compensation was due as the extraordinary circumstances exception applied due to the captains illness. The airline lost and was ordered to pay compensation.

Green LJ took the opportunity to explain how the English court should approach Retained EU law and how English law can automatically be modified by a very broad provision in the EU (Future Relationship) Act 2020 (EUFRA). Based on Green LJs nine basic principles (and slightly expanded for ease of understanding):

This final limb is perhaps the most striking. It reflects s29 EUFRA.

Section 29 EUFRA modifies existing English law insofar as it is not the same as the TCA. Modify includes amend, repeal and revoke. Green LJ called s29 a sweeping up mechanism.

Green LJ explained that s29 is not just a principle of interpretation. Section 29 has the ability to modify automatically existing English law where there is inconsistency, daylight, lacuna between the existing English law and the TCA.

There are some limitations to s29. For example, it only applies to existing domestic law. This is defined to mean (in summary) English enactments that were passed or made before, and any other domestic law as it has effect on, the coming into force of the TCA. It would therefore appear not to apply to any new enactment passed after this date.

Green LJ refers, in addition, to two statutory clarifications:

Anyone needing to look at Retained EU law will want to refer to Green LJs judgment to cross-check their analysis. It is likely that many judges will also be referring to it, so advocates may want to order their submissions accordingly.

The ruling reminds us how the terms of the TCA can impact on private disputes where the subject matter of the dispute overlaps with the subject matter of the TCA. The TCA is wide-ranging. It covers many areas in which we see commercial disputes for example public procurement, energy, IP, and transport.

The impact of an overlap could be most acute where the broad sweeping-up provision in s29 is engaged. It is not a surprise to see such a provision, but it has the capacity to introduce uncertainty and argument. If s29 applies, in order for a private party to know what English law says, it demands that the party interpret the UKs obligations in the TCA (some of which are phrased in extremely broad terms), determine whether existing English law is the same, and if not, read across the TCA into the existing English law. It is not hard to imagine disputing parties reaching different conclusions when conducting that exercise.

It is difficult to predict exactly how often we will see s29 apply, although we may see parties running arguments that it should, including for purely tactical reasons in some cases. It should only apply where existing English law is not consistent with the TCA. To the extent that the TCA is based on shared ideals which underpin existing EU law, in many cases it may be possible to assume that existing English law as at the end of last year was largely compliant with the TCA. The scope of application of s29 may therefore be slim.

Finally, the events in this case occurred in 2018, while Mr Liptons claim originally commenced around 2019. As the events took place prior to the end of the Brexit transition period it is not entirely clear why the Court of Appeal decided to look at Retained EU law, rather than just apply the original EU regulation. However, this does not detract from useful principles in Green LJs judgment, even if they are obiter.

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A lesson on English law post-Brexit from the Court of Appeal - JD Supra