Court of Appeal—multiple problems when dealing with multiple damages under the Protection of Trading Interests Act 1980 (Motorola v Hytera)
Dispute Resolution analysis: The Court of Appeal has ruled that a foreign judgment containing any element of ‘multiple damages’ is unenforceable in its entirety under section 5 of the Protection of Trading Interests Act 1980 (PTIA 1980). In a complex and important decision, the Court of Appeal upheld the first instance decision on this point. The language of the statute is unambiguous. PTIA 1980, s 5(1) provides that ‘any sum payable’ is barred under a qualifying judgment, not just the punitive element. The prohibition on enforcing the entire judgment (including compensatory or ancillary elements such as costs and interest) gives effect to the purpose of the legislation by: (i) discouraging claimants from seeking multiple damages in the first place; and (ii) ensuring the English courts do not indirectly assist in the enforcement of punitive awards. While there was no prior authority directly on this point, the court held its interpretation was ‘overwhelmingly supported’ by the authorities and leading textbooks. Written by Harriet Campbell, senior knowledge lawyer at Penningtons Manches Cooper.