Day 280 - 17 Jul 96 - Page 16


     
     1        entitled to take account of that, in accepting they have
     2        told me the truth about that, say, well, is there really
     3        any practical advantage in contribution proceedings?
     4
     5   MR. STARMER:   That--
     6
     7   MR. JUSTICE BELL:  Not to put too fine a point on it, for an
     8        order for damages it may mean you have got to sell your
     9        house to pay for them.
    10
    11   MR. STARMER:   Yes.
    12
    13   MR. JUSTICE BELL:  Then there may be a greater inclination to
    14        take contribution proceedings than if you have not got any
    15        money for the Plaintiff to get hold of, and there is
    16        absolutely no point in taking execution proceedings and
    17        seeking to make someone bankrupt.  You just run up the
    18        legal fees and you do not get anywhere at all, and then the
    19        press around the country says McDonald's is being
    20        vindictive so McDonald's never dream of doing that in the
    21        first place.  To what extent am I able to keep this as part
    22        of the general picture?
    23
    24   MR. STARMER:   My Lord, I take the point, but the issue is, let
    25        us say, it is a significantly substantial amount that these
    26        Defendants will want a contribution and succeed in getting
    27        a contribution, the extent of their bankruptcy or liability
    28        to the Plaintiffs would that be much reduced, and one has
    29        to assume that nobody wants to be bankrupted and nobody
    30        wants to have that sum hanging over them owed by these
    31        Defendants to the Plaintiffs.
    32
    33   MR. JUSTICE BELL:  Except all that all this presumes that they
    34        lose in the first place.  There cannot be any contribution
    35        if they win, and if they lose then whatever the permutation
    36        they may very well end up with a large tax bill against
    37        which any award of damages might appear to be fairly
    38        insignificant.  Am I not entitled to keep all these things
    39        in the back of my mind?
    40
    41   MR. STARMER:   My Lord, may I just take some instructions
    42        because there are various things being said to me.
    43
    44   MR. JUSTICE BELL:  Yes.  When I said 'tax bill', I meant costs
    45        order, Mr. Starmer.
    46
    47   MR. STARMER:   I am sorry, my Lord?
    48
    49   MR. JUSTICE BELL:  When I said 'tax bill', I meant costs bill.
    50        I mean taxed costs bill.
    51
    52   MR. STARMER:   Yes.  I assumed you did.  My Lord, taking the
    53        first point, which is the extent to which the defendants'
    54        lack of funds ought to impinge, my submission is the effect
    55        is that any act of the Defendant to reduce the amount of
    56        their liability is obviously going to be gratefully
    57        received.  Nobody knows what the Court is going to decide,
    58        and obviously on one scenario the issue is irrelevant.  On
    59        the other, assuming the Plaintiffs win something, nobody
    60        knows the size of that award, but it may well be that the

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