KATSOURIS BROS LTD V HAITOGLOU BROS LTD

[2011] EWHC 111 (QB), High Court of Justice, Queen's Bench Division, Mr Justice Eder, 31 January 2011

Jurisdiction - Place where harmful event occurred - Council Regulation (EC) No 44/2001 on jurisdiction and enforcement of judgments, article 5(3) - Civil Liability (Contribution) Act 1978

H, a Greek company, had contracted to supply tahini to KBL, a company based in the UK, who onsold it to KFF, another UK company, for the manufacture of houmous. Some of the tahini supplied was allegedly contaminated with salmonella, leading to a product recall by KFF. In a first action in the Queen's Bench Division, KBL's claim form was issued on 28 November 2008 and served on H on 30 April 2009, with particulars of claim said to be to follow in due course. On 24 April 2009 KBL had invited H to agree to an extension to serve the particulars of claim but had received no response. Under the CPR H was thus under no obligation to respond to the claim form or contest jurisdiction. The action was dormant for some time and in October 2009, KBL stated in correspondence that it had been allowed to "lapse". By the time of the present hearing, the action had been narrowed down to be either in tort or in contribution under the Civil Liability (Contribution) Act 1978. Any action in contract would have to be brought in the Greek court because delivery of the tahini was ex works in Greece. In the meantime, in the Commercial Court, KFF sued KBL for damages. Unaware of this action, H had earlier sued KBL for a declaration of non-liability in Greece, disputing the salmonella contamination. That action was served on KBL on 14 January 2010. On 8 July 2010 KBL applied for H to be joined to the action between KFF and KBL for indemnity or contribution, explicitly disavowing any claim in contract or tort as such a claim would fall under the Jurisdiction Regulation so that the Greek court was first seised thereof. This was KBL's request for an extension of time to serve particulars in the first action as well as the application of H to set aside the order joining them as Part 20 defendants to the second action.