Fairchild v. Glenhaven Funeral Services Ltd

English case infobox
name=Fairchild v. Glenhaven Funeral Services Ltd
court=House of Lords
date_decided= 20 June 2002
full_name= Fairchild v Glenhaven Funeral Services Ltd (t/a GH Dovener & Son); Pendleton v Stone & Webster Engineering Ltd; Dyson v Leeds City Council (No.2); Matthews v Associated Portland Cement Manufacturers (1978) Ltd; Fox v Spousal (Midlands) Ltd; Babcock International Ltd v National Grid Co Plc; Matthews v British Uralite Plc
citations= [2002] UKHL 22; [2003] 1 A.C. 32; [2002] 3 W.L.R. 89; [2002] 3 All E.R. 305; [2002] I.C.R. 798; [2002] I.R.L.R. 533; [2002] P.I.Q.R. P28; [2002] Lloyd's Rep. Med. 361; (2002) 67 B.M.L.R. 90; (2002) 152 N.L.J. 998;
judges= Lord Bingham of Cornhill; Lord Nicholls of Birkenhead; Lord Hoffmann; Lord Hutton; Lord Rodger of Earlsferry
Cases_cited= McGhee v National Coal Board; Wilsher v Essex AHA
Legislation_cited=Asbestos Industry Regulations 1931 (SI 1931 1140); Asbestos Regulations 1969 (SI 1969 690); Civil Liability (Contribution) Act 1978 (c.47); Civil Liability Act 1961 s.11(3); Factories Act 1937 s.4(1); Factories Act 1961 (c.34) s.63; Factories Act 1961 (c.34) s.155; Hunting Act 1970; Law Reform (Contributory Negligence) Act 1945 (c.28); Spanish Hunting Act 1970
prior_actions= tbc
subsequent_actions= none
Keywords=Tort, Causation, Damages; Employers liability; Industrial diseases

"Fairchild v. Glenhaven Funeral Services Ltd" [2002] [http://www.publications.parliament.uk/pa/ld200102/ldjudgmt/jd020620/fchild-1.htm UKHL 22] is a leading case on causation in English tort law. It approves the test of "materially increasing risk" of harm, as a deviation in some circumstances from the ordinary "balance of probabilities" test under the "but for" standard.

Facts

Mr Fairchild had worked for a number of different employers, as a subcontractor for Leeds City Council, all of whom had negligently exposed him to asbestos. Mr Fairchild contracted mesothelioma. He passed away, and his wife was suing the employers on his behalf for negligence. A number of other claimants were in similar situations, and joined in on the appeal. The problem was, a single asbestos fibre, inhaled at any time, can trigger mesothelioma. The risk of contracting an asbestos related disease increases depending on the amount of exposure to it. However, because of long latency periods (it takes 25 to 50 years before symptoms of disease become evident) it is impossible to know when the crucial moment was. It was impossible therefore for Mr Fairchild to point to any single employer and say "it was him". Moreover, because the traditional test of causation is to show that "on the balance of probabilities" X has caused Y harm, it was impossible to say that any single employer was the cause at all. While it was possible to say "it was one of them" it was impossible to say which. Under the normal causation test, none of them would be found, on the balance of probabilities to have caused the harm.

Judgment

The House of Lords held that, following "McGhee v. National Coal Board" ["McGhee v. National Coal Board" [1972] 3 All E.R. 1008, 1 W.L.R. 1] the appropriate test in this situation, was whether the defendant had materially increased the risk of harm toward the plaintiff. The employers were joint and severally liable against the plaintiff (though amongst themselves they could sue one another for different contributions).

Lord Bingham, in particular, noted that in this case it was not possible to speak of "probabilities" in a simple way, because,

"It is on this rock of uncertainty, reflecting the point to which medical science has so far advanced, that the three claims were rejected by the Court of Appeal and by two of the three trial judges." [per Lord Bingham, at [7] ]

Moreover,

"The overall object of tort law is to define cases in which the law may justly hold one party liable to compensate another." [per Lord Bingham, at [9] ]

It was wrong to deny the claimants any remedy at all. Therefore the appropriate test of causation is whether the employers had materially increased the risk of harm to the claimants.

Effect

The cost of this ruling was enormous. It is estimated that this single judgment was worth £6.8bn. Approximately 13 Britons die every day from asbestos related diseases, and the rate of deaths is going up.

In this context, another asbestos related case came before the House of Lords in "Barker v. Corus" [2006] [http://www.publications.parliament.uk/pa/ld200506/ldjudgmt/jd060503/barker-1.htm UKHL 20] . This time the question was whether, if one of the employers that was responsible for the materially increasing the risk of harm had gone insolvent, should the solvent employers pick up the proportion for which that insolvent employer was responsible? The House of Lords accepted the argument that the solvent employer should not. So for example, Mr B has worked for employers X, Y, and Z for ten years each. X, Y and Z have all exposed Mr B to asbestos, and it is not possible to say with which employer Mr B had contracted a disease. But now X and Y have gone insolvent, and Mr B is suing Z. The House of Lords held that Z would only have to pay one third of the full compensation for Mr B's disease, in other words, Z has only "proportionate liability" for that part which he materially increased the risk of Mr B's harm. This outcome was advocated by a number of academics. [see, e.g. Peter Cane, "Atiyah's Accidents, Compensation and the Law" (2006) 99]

The essential decision to be made is whether a tortfeasor or a claimant should bear the risk of other tortfeasors going insolvent. It is important to keep in mind, that in the example above, Z may not have actually caused "any" harm. Moreover, it might have been that Z in fact caused "all" the harm. But most importantly the claimant himself certainly caused "none" of the harm. After the decision in "Barker" there was a swift and fierce political backlash, with large numbers of workers, families, trade unions, and Members of Parliament calling for the reversal of the ruling. This was on the basis that it would undermine full compensation for working people and their families. Soon enough the Compensation Act 2006 [ [http://www.opsi.gov.uk/acts/acts2006/ukpga_20060029_en_1 Full text] of the Compensation Act 2006] was introduced, specifically to reverse the ruling. However the Act only applies to asbestos related disease. What remains to be seen is whether the "proportionate liability" idea will crop up in other situations.

ee also

*"Barker v. Corus"
*Asbestos and the law
*Negligence
*English tort law
*Causation

Notes

External links

* [http://www.publications.parliament.uk/pa/ld200102/ldjudgmt/jd020620/fchild-1.htm Full judgment] from the House of Lords.