Attorney General v Blake (Jonathan Cape Ltd,

8/14/2019 Attorney General v Blake (Jonathan Cape Ltd,

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All England Law Reports/2000/Volume 4 /Attorney General v Blake !onat"an #ape Ltd$ t"%rdparty& ' (2000) 4 All ER *+,

(2000) 4 All ER *+,

Attorney General v Blake (Jonathan Cape Ltd, third party)

HOUSE OF LORS

LOR !"CHOLLS OF B"R#E!HEA, LOR GOFF OF CH"E$ELE%, LOR BRO&!E'&"L#"!SO!, LOR SE%! A! LOR HOBHOUSE OF &OOBOROUGH

'* +ARCH, JUL% ---

Contract - Damages for breach - Account of profits - Defendant formerly employed by Crown asmember of Secret Intelligence Service and becoming agent for Soviet Union - Defendant writingand publishing autobiography based on information acquired in capacity as intelligence officer -Boo written in breach of statutory undertaing - Boo published without licence or permission ofCrown - !hether account of profits available for breach of contract"

-"e de.endant$ B$ "ad een employed as a memer o. t"e eret ntell%gene erv%e .rom 1344to 1315 B "ad s%gned an 6..%%al erets At delarat%on at t"e eg%nn%ng o. "%s employment$ yw"%" "e agreed 7not to d%vulge any o..%%al %n.ormat%on ga%ned y me as a result o. myemployment$ e%t"er %n t"e press or %n ook .orm5 understand t"at t"ese prov%s%ons apply not onlydur%ng my per%od o. serv%e ut also a.ter employment "as eased75 n 13,1 "e eame an agent

.or t"e ov%et 8n%on5 n 131 "e was onv%ted on .%ve ounts o. unlaw.ully ommun%at%ng%n.ormat%on ontrary to s 11&& o. t"e 6..%%al erets At 1311 and was sentened to a lengt"yterm o. %mpr%sonment5 9owever$ %n 13 B esaped .rom pr%son and .led to :osow5 n 13+3 Bwrote "%s auto%ograp"y$ y w"%" date t"e %n.ormat%on %n t"e ook was no longer ons%deredon.%dent%al nor %ts d%slosure damag%ng to t"e pul% %nterest5 B entered %nto a pul%s"%ng ontratw%t" t"e de.endant pul%s"er$ ! Ltd5 ! Ltd agreed to pay B t"ree sums o. ;,0$000 on B7s s%gn%ngt"e ontrat$ on del%very o. t"e manusr%pt and on pul%at%on$ as advanes aga%nst royalt%es5 -"eook was pul%s"ed %n 13305 n 1331$ t"e Attorney General ommened proeed%ngs aga%nst B$ontend%ng t"at %n wr%t%ng t"e ook and aut"or%s%ng %ts pul%at%on$ B "ad ated %n rea" o. t"e.%du%ary duty w"%" "e owed to t"e #rown5 -"e


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normally t"e remed%es o. damages$ spe%.% per.ormane and %ned rules ould e presr%ed and t"e ourt oug"t to "ave regard toall t"e %rumstanes$ %nlud%ng t"e su


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Burmah 6il Co 7Burmah 5rading8/td v /ord Advocate(134) 2 All ER *4+$ (13,) A# ,$(134) 2 =LR 12*1$ 9L5

Chief Constable of 3ent v 9(13+2) * All ER *$ (13+*) DB *4$ (13+2) * =LR 42$ #A5

2ouriet v Union of .ost 6ffice !orers(13) * All ER 0$ (13+) A# 4*,$ (13) * =LR *00$9L5

0alifa: Building Society v 5homas(133,) 4 All ER *$ (133) #" 21$ (133) 2 =LR *$ #A5

0ogg v 3irby1+0*& + Ves !un 21,$ *2 ER **5

;aggard v Sawyer(133,) 2 All ER 1+3$ (133,) 1 =LR 23$ #A5

;egon v 9ivian1+1& LR #"App 42$ L#5

;ohnson v Agnew(133) 1 All ER ++*$ (13+0) A# *$ (133) 2 =LR 4+$ 9L5

/ae v Bayliss(134) 2 All ER 1114$ (134) 1 =LR 10*5

/amine v Dorrell10,& 2 Ld Raym 121$ 32 ER *0*$ B5

/eeds Industrial Co-op Society /td v Slac(1324) A# +,1$ (1324) All ER Rep 2,3$ 9L5

/ever v 2oodwin1++& * #" 1$ (1++'30) All ER Rep 42$ #A5

/ivingstone v )awyards Coal Co1++0& , App #as 2,$ 9L5#$%%%& ' All () *+, at *+" o. Pleas5

4ediana 7owners8 v Cometowners&= 5he 4ediana(1300) A# 11*$ (1300'*) All ER Rep 12$9L5

4inistry of Defence v Ashman(133*) 2 EGLR 102$ #A5

4inistry of Defence v 5hompson(133*) 2 EGLR 10$ #A5


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6ccidental !orldwide Investment Corp v Sibs A>S Avanti= Sibs A>S 2larona and Sibs A>S?avalis$ 5he Siboen and 5he Sibotre(13) 1 Lloyd7s Rep 23*5

.enarth Doc (ngineering Co /td v .ounds(13*) 1 Lloyd7s Rep *,35

.hoto .roduction /td v Securicor 5ransport /td(13+0) 1 All ER ,,$ (13+0) A# +2$ (13+0) 2=LR 2+*$ 9L5

)eading v A-2(13,1) 1 All ER 1$ (13,1) A# ,0$ 9L affgsu nom )e )eading1s .etitionof )ight(1343) 2 All ER +$ (1343) 2 B 2*2$ #A5

)eid-?ewfoundland Co v Anglo-American 5elegraph Co /td(1312) A# ,,,$ P#5

)obinson v 0arman1+4+& 1 E>" +,0$ (1+4*'0) All ER Rep *+*$ 1,4 ER **$ E>"5

)u:ley (lectronics and Construction /td v @orsyth= /addingford (nclosures /td v @orsyth(133,) * All ER 2+$ (133) A# *44$ (133,) * =LR 11+$ 9L5

Snepp v US13+0& 444 8 ,0$ 8 #5

Strand (lectric and (ngineering Co /td v Brisford (ntertainments /td(13,2) 1 All ER 3$(13,2) 2 DB 24$ #A5

Surrey CC v Bredero 0omes /td(133*) * All ER 0,$ (133*) 1 =LR 1*1$ #A affg(1332) *

All ER *025

5ito v !addell 7?o $8= 5ito v A-2(13) * All ER 123$ (13) #" 10$ (13) 2 =LR 435

5odd v 2ee1+10& 1 Ves !un 2*$ *4 ER 105

United Australia /td v Barclays Ban /td(1340) 4 All ER 20$ (1341) A# 1$ 9L5

!atson= /aidlaw Co /td v .ott= Cassels and !illiamson1314& *1 RP# 104$ 9L5

!ebb v Chief Constable of 4erseyside .olice= .orter v Chief Constable of 4erseyside .olice(2000) 1 All ER 203$ (2000) 2 =LR ,4$ #A5

!hite v ;ones(133,) 1 All ER 31$ (133,) 2 A# 20$ (133,) 2 =LR 1+$ 9L5

!hitwham v !estminster Brymbo Coal and Coe Co(1+3) 2 #" ,*+$ #A5


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!rotham .ar (state Co /td v .arside 0omes /td(134) 2 All ER *21$ (134) 1 =LR 3+5

Appeal and 0ro..'appeal

-"e de.endant$ George Blake$ appealed .rom t"e de%s%on o. t"e #ourt o. Appeal Lord=ool. :R$ :%llett and :ummery L!!& (133+) 1 All ER +**$ (133+) #" 4*3& g%ven on 1eemer 133 w"erey t"ey allowed$ on ot"er grounds$ an appeal .rom t"e de%s%ono. %r R%"ard ott V'# (133) * All ER 30*$ (133) #" +4& g%ven on 13 Apr%l 133$w"erey "e d%sm%ssed t"e #rown7s at%on$ roug"t y t"e Attorney General$ aga%nst t"ede.endant .or rea" o. .%du%ary duty$ la%m%ng an order .or payment to t"e #rown o. allsums .ound due to t"e de.endant .rom t"e t"%rd party pul%s"ers$ !onat"an #ape Ltd$under any ontrat entered %nto etween t"e de.endant and t"e t"%rd party .or t"epul%at%on o. a ook5 -"e #rown ross'appealed$ seek%ng rest%tut%onary damages .orrea" o. ontrat5 -"e pul%s"ers took no part %n t"e appeal or ross'appeal5 -"e .atsare set out %n t"e op%n%on o. Lord @%"olls o. B%rken"ead5

)ichard Clayton and ?atasha ;offe 7instructed by Birnberg .eirce .artners8 for the appellant"

)oss Cranston C= S-2= .hilip 0avers C= .hilip Sales and Anya .roops 7instructed by the5reasury Solicitor8 for the Attorney 2eneral"

#$%%%& ' All () *+, at *++

5heir /ordships too time for consideration"

J1ly ---2 he /ollo3in4 opinion. 3ere delivered2

LOR !"CHOLLS OF B"R#E!HEA2

:y Lords$ George Blake %s a notor%ous$ sel.'on.essed tra%tor5 9e was employed as a memer o.t"e seur%ty and %ntell%gene serv%es .or 1 years$ .rom 1344 to 1315 n 13,1 "e eame anagent .or t"e ov%et 8n%on5 Crom t"en unt%l 130 "e d%slosed valuale seret %n.ormat%on anddouments ga%ned t"roug" "%s employment5 6n * :ay 131 "e pleaded gu%lty to .%ve "arges o.unlaw.ully ommun%at%ng %n.ormat%on ontrary to s 11&& o. t"e 6..%%al erets At 13115 9ewas sentened to 42 years7 %mpr%sonment5 -"%s sentene re.leted t"e e>treme grav%ty o. t"e"arm roug"t aout y "%s etrayal o. seret %n.ormat%on5

n 13 Blake esaped .rom =ormwood rus pr%son and .led to Berl%n and t"en to :osow5 9e%s st%ll t"ere$ a .ug%t%ve .rom lus%ve r%g"t to pul%s" t"e ook %n t"%s ountry %n return .or royalt%es5 !onat"an #ape Ltdagreed to pay "%m advanes aga%nst royalt%esH ;,0$000 on s%gn%ng t"e ontrat$ a .urt"er ;,0$000on del%very o. t"e manusr%pt$ and anot"er ;,0$000 on pul%at%on5 Pla%nly$ "ad Blake not een an%n.amous spy w"o "ad also dramat%ally esaped .rom pr%son$ "%s auto%ograp"y would not "aveommanded payments o. t"%s order5


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-"e ook$ ent%tled 7@o 6t"er #"o%e7$ was pul%s"ed on 1 eptemer 13305 @e%t"er t"e seur%tyand %ntell%gene serv%es nor any ot"er ran" o. t"e government were aware o. t"e ook unt%l %tspul%at%on was announed5 Blake "ad not soug"t any pr%or aut"or%sat%on .rom t"e #rown tod%slose any o. t"e %n.ormat%on %n t"e ook relat%ng to t"e eret ntell%gene erv%e &5!onat"an #ape Ltd "as$ apparently$ already pa%d Blake aout ;0$000 under t"e pul%s"%ngagreement5 n prat%e t"at money %s %rreoverale5 A .urt"er sustant%al amount$ %n t"e reg%on o.;30$000$ rema%ns payale5 -"ese proeed%ngs onern t"%s unpa%d money5

he pro0eedin4.

6n 24 :ay 1331 t"e Attorney General ommened an at%on aga%nst Blake$ w%t" a v%ew toensur%ng "e s"ould not enept%onally$%nvoke t"e ass%stane o. t"e %v%l law %n a%d o. t"e r%m%nal law5 -yp%ally t"%s ours w"ere ano..ene %s .re?uently repeated %n d%sregard o. an %nade?uate penalty see 2ouriet v Union of .ost6ffice !orers(13) * All ER 0$ (13+) A# 4*,&5 n t"e present ase Blake7s d%slosure o. t"e%n.ormat%on %n "%s auto%ograp"y to "%s pul%s"ers was a rea" o. s 11& o. t"e 6..%%al erets

At 13+3H

7A person w"o %s or "as een 555 a memer o. t"e seur%ty and %ntell%gene serv%es 555 %s gu%lty o. ano..ene %. w%t"out law.ul aut"or%ty "e d%sloses any %n.ormat%on 555 relat%ng to seur%ty or %ntell%gene w"%"%s or "as een %n "%s possess%on y v%rtue o. "%s pos%t%on as a memer o. any o. t"ose serv%es 5557

. Blake7s d%slosure ourred e.ore t"%s At ame %nto .ore on 1 :ar" 1330$ t"e d%slosurewas an o..ene under omparale prov%s%ons %n s 21& o. t"e 1311 At5 -"e #ourt o. Appeal "eldt"at t"e


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7.$ as "ere$ a r%m%nal o..ene "as already een omm%tted$ t"e tends to en.or%ng pul%pol%y w%t" respet to t"e onse?uenes o. t"e omm%ss%on o. t"at r%me$ eg restra%n%ng ree%pt y t"er%m%nal o. a .urt"er ene.%t as a result o. or %n onnet%on w%t" t"at r%me 555 -"%s %s an e>ept%onal ase %nw"%" t"e Attorney General %s ent%tled to %ntervene y %nst%tut%ng %v%l proeed%ngs$ %n a%d o. t"e r%m%nallaw$ to up"old t"e pul% pol%y o. ensur%ng t"at a r%m%nal does not reta%n pro.%t d%retly der%ved .rom t"eomm%ss%on o. "%s r%me57 ee (133+) 1 All ER +** at +43$ (133+) #" 4*3 at 425&

-"e ourt made an order %n t"e .ollow%ng termsH

7555 t"at t"e e.endant George Blake e restra%ned unt%l .urt"er order .rom ree%v%ng or .rom aut"or%s%ngany person to ree%ve on "%s e"al. any payment or ot"er ene.%t result%ng .rom or %n onnet%on w%t" t"ee>plo%tat%on o. I@o 6t"er #"o%eI %n any .orm or o. any %n.ormat%on t"ere%n relat%ng to seur%ty and%ntell%gene w"%" %s or "as een %n "%s possess%on y v%rtue o. "%s pos%t%on as a memer o. t"e eretntell%gene erv%e57

Blake appealed aga%nst t"%s de%s%on o. t"e #ourt o. Appeal5 6n t"e "ear%ng o. t"%s appeal y your

Lords"%ps "e was represented y ounsel and sol%%tors at%ng pro ono5 w%s" to pay tr%ute tot"e t"oroug"ness w%t" w"%" ounsel and sol%%tors prepared t"e appeal and t"e e>pert%se w%t"w"%" :r #layton presented %t to your Lords"%ps5

#$%%%& ' All () *+, at *%

he private la3 0lai5

n t"e ourse o. "%s


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t"at %. a person took away a "a%r .rom "%s room and kept %t .or 12 mont"s$ ould anyody say you"ad a r%g"t to d%m%n%s" t"e damages y s"ow%ng t"at d%d not usually s%t %n t"at "a%r$ or t"at t"erewere plenty o. ot"er "a%rs %n t"e roomJ -o t"e same e..et was Lord "aw7s tell%ng e>ample %n!atson= /aidlaw Co /td v .ott= Cassels and !illiamson1314& *1 RP# 104 at 1135 t ears

repet%t%onH7. A$ e%ng a l%veryman$ keeps "%s "orse stand%ng %dle %n t"e stale$ and B$ aga%nst "%s w%s" or w%t"out "%sknowledge$ r%des or dr%ves %t out$ %t %s no answer to A .or B to sayH IAga%nst w"at loss do you want to erestoredJ restore t"e "orse5 I-"ere %s no loss5 -"e "orse %s none t"e worse %t %s t"e etter .or t"ee>er%se5I7

Lord "aw pre.aed t"%s oservat%on w%t" a statement o. general pr%n%pleH

7555 w"erever an astrat%on or %nvas%on o. property "as ourred$ t"en$ unless su" astrat%on or%nvas%on were to e sant%oned y law$ t"e law oug"t to y%eld a reompense under t"e ategory orpr%n%ple 555 e%t"er o. pr%e or o. "%re57

#$%%%& ' All () *+, at *$

-"at was a patent %n.r%ngement ase5 -"e 9ouse o. Lords "eld t"at damages s"ould e assessedon t"e .oot%ng o. a royalty .or every %n.r%ng%ng art%le5

-"%s pr%n%ple %s estal%s"ed and not ontrovers%al5 :ore d%..%ult %s t"e al%gnment o. t"%s measureo. damages w%t"%n t"e as% ompensatory measure5 Reently t"ere "as een a move towardsapply%ng t"e lael o. rest%tut%on to awards o. t"%s "arater see$ .or %nstane$ 4inistry of Defencev Ashman(133*) 2 EGLR 102 at 10,$ and 4inistry of Defence v 5hompson(133*) 2 EGLR 10&59owever t"at may e$ t"ese awards annot e regarded as on.orm%ng to t"e str%tlyompensatory measure o. damage .or t"e %nept%onto t"e general rule5

#ourts o. e?u%ty went .urt"er t"an t"e ommon law ourts5 n some ases e?u%ty re?u%red t"ewrongdoer to y%eld up all "%s ga%ns5 n respet o. erta%n wrongs w"%" or%g%nally or ord%nar%ly weret"e su


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7555 w"at %s t"e onse?uene %n Law and %n E?u%ty 555 a #ourt o. E?u%ty %n t"ese #ases %s not ontent w%t"an At%on .or amages .or %t %s nearly %mposs%le to know t"e e>tent o. t"e damage and t"ere.ore t"eremedy "ere$ t"oug" not ompensat%ng t"e peun%ary damage e>ept y an aount o. pro.%ts$ %s t"eestH t"e remedy y an n


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a5a4e. 1nder Lord Cairn.6 A0t

must also ment%on t"e amples are Bracewell v Appleby(13,) 1 All ER 33*$ (13,) #" 40+ and ;aggard v Sawyer(133,) 2 All ER 1+3$ (133,) 1 =LR23$ ot" ases onerned w%t" aess to a newly'u%lt "ouse over anot"er7s land5

-"e measure o. damages awarded %n t"%s type o. ase %s o.ten analysed as damages .or loss o. aarga%n%ng opportun%ty or$ w"%" omes to t"e same$ t"e pr%e payale .or t"e ompulsorya?u%s%t%on o. a r%g"t5 -"%s analys%s %s orret5 -"e ourt7s re.usal to grant an %n


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as% remedy %s an award o. damages5 n t"e mu" ?uoted words o. Parke B$ t"e rule o. t"eommon law %s t"at w"ere a party susta%ns a loss y reason o. a rea" o. ontrat$ "e %s$ so .aras money an do %t$ to e plaed %n t"e same pos%t%on as %. t"e ontrat "ad een per.ormed see)obinson v 0arman1+4+& 1 E>" +,0 at +,,$ (1+4*'0) All ER Rep *+* at *+,&5 Leav%ng as%de

t"e anomalous e>ept%on o. pun%t%ve damages$ damages are ompensatory5 -"at %s a>%omat%5 t%s e?ually well'estal%s"ed t"at an award o. damages$ assessed y re.erene to .%nan%al loss$ %snot always 7ade?uate7 as a remedy .or a rea" o. ontrat5 -"e law reogn%ses t"at a party to aontrat may "ave an %nterest %n per.ormane w"%" %s not read%ly measurale %n terms o. money56n rea" t"e %nnoent party su..ers a loss5 9e .a%ls to ota%n t"e ene.%t prom%sed y t"e ot"erparty to t"e ontrat5 -o "%m t"e loss may e as %mportant as .%nan%ally measurale loss$ or moreso5 An award o. damages$ assessed y re.erene to .%nan%al loss$ w%ll not reompense "%mproperly5 Cor "%m a .%nan%ally assessed measure o. damages %s %nade?uate5

-"e lass% e>ample o. t"%s type o. ase$ as every law student knows$ %s a ontrat .or t"e sale o.land5 -"e uyer o. a "ouse may e attrated y .eatures

#$%%%& ' All () *+, at *,

w"%" "ave l%ttle or no %mpat on t"e value o. t"e "ouse5 An award o. damages$ ased on str%tly.%nan%al r%ter%a$ would .a%l to reompense a d%sappo%nted uyer .or t"%s "ead o. loss5 -"e pr%maryresponse o. t"e law to t"%s type o. ase %s to ensure$ %. poss%le$ t"at t"e ontrat %s per.ormed %naordane w%t" %ts terms5 -"e ourt may make orders ompell%ng t"e party w"o "as omm%tted area" o. ontrat$ or %s t"reaten%ng to do so$ to arry out "%s ontratual ol%gat%ons5 -o t"%s endt"e ourt "as w%de powers to grant %n


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.or a rela>at%on o. t"e ovenant5

n rea"%ng "%s onlus%on t"e S Avanti= Sibs

A>S 2larona and Sibs A>S ?avalis= 5he Siboen and 5he Sibotre(13) 1 Lloyd7s Rep 23* at


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**$ err ! summar%ly retent$ regarded as "old%ng t"e land on

#$%%%& ' All () *+, at *ept .or t"e ene.%tand aount o. t"e telegrap" ompany5 -"e Pr%vy #oun%l "eld t"at t"e ra%lway ompany wasl%ale to aount as a trustee .or t"e pro.%ts %t wrong.ully made .rom %ts use o. t"e w%re .orommer%al purposes5 n British 4otor 5rade Association v 2ilbert(13,1) 2 All ER 41 t"e pla%nt%..

su..ered no .%nan%al loss ut t"e award o. damages .or rea" o. ontrat e..et%vely str%pped t"ewrongdoer o. t"e pro.%t "e "ad made .rom "%s wrong.ul venture %nto t"e lak market .or new ars5

-"ese ases %llustrate t"at %rumstanes do ar%se w"en t"e


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wrongdoer7s pro.%ts5 Brea" o. on.%dene %s an %nstane o. t"%s5 . on.%dent%al %n.ormat%on %swrong.ully d%vulged %n rea" o. a non'd%slosure agreement$ %t would e not"%ng s"ort o.sop"%stry to say t"at an aount o. pro.%ts may e ordered %n respet o. t"e e?u%tale wrong utnot %n respet o. t"e rea" o. ontrat w"%" governs t"e relat%ons"%p etween t"e part%es5 =%t"

t"e estal%s"ed aut"or%t%es go%ng t"us .ar$ ons%der %t would e only a modest step .or t"e law toreogn%se#$%%%& ' All () *+, at *+

openly t"at$ e>ept%onally$ an aount o. pro.%ts may e t"e most appropr%ate remedy .or rea"o. ontrat5 t %s not as t"oug" t"%s step would ontrad%t some reogn%sed pr%n%ple appl%edons%stently t"roug"out t"e law to t"e grant or w%t""old%ng o. t"e remedy o. an aount o. pro.%ts5@o su" pr%n%ple %s d%sern%le5

-"e ma%n argument aga%nst t"e ava%la%l%ty o. an aount o. pro.%ts as a remedy .or rea" o.ontrat %s t"at t"e %rumstanes w"ere t"%s remedy may e granted w%ll e unerta%n5 -"%s w%ll"ave an unsettl%ng e..et on ommer%al ontrats w"ere erta%nty %s %mportant5 do not t"%nk

t"ese .ears are well .ounded5 see no reason w"y$ in practice$ t"e ava%la%l%ty o. t"e remedy o. anaount o. pro.%ts need d%stur settled e>petat%ons %n t"e ommer%al or onsumer world5 Anaount o. pro.%ts w%ll e appropr%ate only %n e>ept%onal %rumstanes5 @ormally t"e remed%es o.damages$ spe%.% per.ormane and %nept%onal ases$ w"ere t"ose remed%es are %nade?uate$ t"at any ?uest%on o.aount%ng .or pro.%ts w%ll ar%se5 @o .%>ed rules an e presr%ed5 -"e ourt w%ll "ave regard to allt"e %rumstanes$ %nlud%ng t"e su


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rea" o. su" an ol%gat%on e.ore an aount o. pro.%ts w%ll e t"e appropr%ate remedy5

Lord =ool. :R (133+) 1 All ER +** at +4,$ (133+) #" 4*3 at 4,$ 4,+& also suggested t"ree.ats w"%" s"ould not e a su..%%ent ground .or depart%ng .rom

#$%%%& ' All () *+, at *

t"e normal as%s on w"%" damages are awardedH t"e .at t"at t"e rea" was yn%al anddel%erate t"e .at t"at t"e rea" enaled t"e de.endant to enter %nto a more pro.%tale ontratelsew"ere and t"e .at t"at y enter%ng %nto a new and more pro.%tale ontrat t"e de.endant put%t out o. "%s power to per.orm "%s ontrat w%t" t"e pla%nt%..5 agree t"at none o. t"ese .ats woulde$ y %tsel.$ a good reason .or order%ng an aount o. pro.%ts5

he pre.ent 0a.e

-"e present ase %s e>ept%onal5 -"e onte>t %s employment as a memer o. t"e seur%ty and

%ntell%gene serv%es5 eret %n.ormat%on %s t"e l%.elood o. t"ese serv%es5 n t"e 13,0s Blakedel%erately omm%tted repeated rea"es o. "%s undertak%ng not to d%vulge o..%%al %n.ormat%onga%ned as a result o. "%s employment5 9e aused untold and %mmeasurale damage to t"e pul%%nterest "e "ad omm%tted "%msel. to serve5 n 1330 "e pul%s"ed "%s auto%ograp"y$ a .urt"errea" o. "%s e>press undertak%ng5 By t"%s t%me t"e %n.ormat%on d%slosed was no longeron.%dent%al5 n t"e ord%nary ourse o. ommer%al deal%ngs t"e d%slosure o. non'on.%dent%al%n.ormat%on m%g"t e regarded as ven%al5 n t"e present ase d%slosure was also a r%m%nalo..ene under t"e 6..%%al erets Ats$ even t"oug" t"e %n.ormat%on was no longer on.%dent%al5et%on 1 o. t"e 13+3 At draws a d%st%nt%on %n t"%s regard etween memers o. t"e seur%ty and%ntell%gene serv%es and ot"er #rown servants5 8nder s 1*& a person w"o %s or "as een a#rown servant %s gu%lty o. an o..ene %. w%t"out law.ul aut"or%ty "e makes 7a damag%ng d%slosure7o. %n.ormat%on relat%ng to seur%ty or %ntell%gene5 -"e o..ene %s drawn more w%dely %n t"e ase o.a present or past memer o. t"e seur%ty and %ntell%gene serv%es5 u" a person %s gu%lty o. ano..ene %. w%t"out law.ul aut"or%ty "e d%sloses 7any %n.ormat%on7 relat%ng to seur%ty or %ntell%genew"%" %s or "as een %n "%s possess%on y v%rtue o. "%s pos%t%on as a memer o. t"ose serv%es5-"%s d%st%nt%on was approved %n Parl%ament a.ter deate w"en t"e leg%slat%on was e%ng enated5

:r #layton sum%tted t"at s 11& %s drawn too w%dely and %n.r%nges art 10 o. t"e #onvent%on .or t"eProtet%on o. 9uman R%g"ts and Cundamental Creedoms Rome$ 4 @ovemer 13,0 - 113,*& #mnd +33&5 et%on 11& o. t"e 13+3 At r%m%nal%ses d%slosure o. %n.ormat%on w"en nodamage results5 t .ouses on t"e status o. t"e %nd%v%dual w"o makes t"e d%slosure$ rat"er t"anon t"e nature o. t"e %n.ormat%on %tsel.5 A non'damag%ng d%slosure y a memer o. t"e seur%tyand %ntell%gene serv%es %s r%m%nal$ ut t"e %dent%al non'damag%ng d%slosure y a #rownservant %s not5

-"%s argument was ra%sed .or t"e .%rst t%me %n t"%s 9ouse5 our Lords"%ps are not e?u%pped w%t"t"e mater%al neessary to de%de t"e po%nt5 n t"e event t"%s does not matter$ eause t"ere %s %nt"e present ase anot"er ons%derat%on w"%" %s su..%%ent .or t"e purposes o. t"e AttorneyGeneral5 ="en "e


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deal%ngs w%t" ea" ot"er$ and t"at t"ose reru%ted as %n.ormers s"ould "ave t"e l%ke on.%dene58nderm%n%ng t"e w%ll%ngness o. prospet%ve %n.ormers to o'operate

#$%%%& ' All () *+, at '%%

w%t" t"e serv%es$ or underm%n%ng t"e morale and trust etween memers o. t"e serv%es w"enengaged on seret and dangerous operat%ons$ would &5 n t"e t"%rd party proeed%ngs!onat"an #ape Ltd "as soug"t to dedut legal e>penses %nurred %n res%st%ng a de.amat%on la%mand %n res%st%ng t"e #rown7s la%m5 Aord%ngly$ t"e appropr%ate .orm o. order on t"%s appeal %s adelarat%on t"at t"e Attorney General %s ent%tled to e pa%d a sum e?ual to

#$%%%& ' All () *+, at '%


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w"atever amount %s due and ow%ng to Blake .rom !onat"an #ape Ltd under t"e pul%s"%ngagreement o. 4 :ay 13+35 -"e %n


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n Pt V o. t"e 13++ At$ s%ne amended y t"e 133, At$ Parl%ament "as are.ully marked outw"en t"ese orders may e made5 -"e ommon law "as no power to remedy any pere%vedde.%%en%es %n t"%s statutory ode5 An attempt to do so would o..end t"e estal%s"ed generalpr%n%ple$ o. "%g" onst%tut%onal %mportane$ t"at t"ere %s no ommon law power to take or

on.%sate property w%t"out ompensat%on5 eeA-2 v De 3eyser1s )oyal 0otel /td(1320) A#,0+$ (1320) All ER Rep +0$ Burmah 6il Co 7Burmah 5rading8 /td v /ord Advocate (134) 2 All ER*4+$ (13,) A# , and$ %n t"%s onte>t$ 4alone v Comr of .olice of the 4etropolis(133) 1 All ER2, at 24'2,$ (13+0) DB 43 at 1'*$ per tep"enson L!5&

s"ould add t"at %n "%s


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a sum o. aout ;30$000 payale y !onat"an #ape Ltd$ t"e pul%s"ers$ to Blake5 -"e #ourt o.Appeal (133+) 1 All ER +**$ (133+) #" 4*3& up"eld t"e de%s%on o. t"e V%e'#"anellor$ %rR%"ard ott (133) * All ER 30*$ (133) #" +4&$ t"at Blake %s not l%ale to aount .or "%s pro.%tsas a .%du%ary5 esp%te t"e enouragement o. t"e #ourt o. Appeal :r !o"n m%t" D#$ t"e Attorney

General at t"at t%me$ del%ned to pursue a la%m .or rest%tut%onary damages .or rea" o. ontrat5="%le reord%ng %ts v%ew t"at su" a la%m$ %. made$ m%g"t e sound$ t"e #ourt o. Appeal waspowerless to at on t"at v%ew see (133+) 1 All ER +** at +4*'+4,$ (133+) #" 4*3 at 4,'4,+&5 na ase ry%ng out .or e..et%ve rel%e. aga%nst Blake$ t"e #ourt o. Appeal dev%sed an %nonomy re?u%res t"at t"e ?uest%on w"et"er t"ere %ssu" a pr%vate law remedy s"ould e ons%dered .%rst5 -"%s %s so eause t"e #ourt o. Appeal %ngrant%ng t"e %ntended t"e rea" o. e>%st%ng powers o. t"e Attorney

General5 And t"at ourse ould only sens%ly e enterta%ned %. t"ere was not a rest%tut%onary lawremedy5 t %s t"ere.ore to t"e pr%vate law pos%t%on t"at .%rst turn5

n t"e #ourt o. Appeal %n Surrey CC v Bredero 0omes /td(133*) * All ER 0,$ (133*) 1 =LR1*1 d%sussed some o. t"e d%..%ult%es %n"erent %n reat%ng a general remedy .or t"e reovery o.rest%tut%onary damages .or rea" o. ontrat5 6n t"at oas%on remarked t"at %t %s not trad%t%onalto desr%e a la%m .or rest%tut%on .ollow%ng a rea" o. ontrat as damages5 -"e term%nology %s$"owever$ less %mportant t"an t"e sustaneH under ons%derat%on are la%ms .or t"e d%sgorgemento. pro.%ts aga%nst a ontrat reaker5 -"ere "as een a sustant%al aadem% deate on t"e mer%tso. t"e atual de%s%on %n t"e Bredero 0omes /tdase5 %ne t"%s %ssue "as not een d%retlydeated %n t"e present ase propose to e>press no v%ew on %t5 But %t %s r%g"t to aknowledge t"att"e aadem% omment "as een r%t%al o. t"e de%s%on %n t"e Bredero 0omes /tdase5 would$

"owever$ respet.ully o..er a omment on t"e valuale aadem% deate5 6n t"e one "and$ t"ere%s no or v%rtually no support .or a general at%on .or d%sgorgement o. pro.%ts made y a ontratreaker y reason o. "%s rea"5 6n t"e ot"er "and$ t"ere %s s%gn%.%antly asent .rom t"e post'Bredero 0omes /tdaadem% omment a reasoned statement o. t"e part%ular %rumstanesw"en su" a remedy s"ould e ava%lale5 -"at %s not surpr%s%ng eause %t %s a notor%ously d%..%ultsupense saved& and 2& 7w"ere t"e de.endant "as ota%ned "%s pro.%t y do%ng t"e very t"%ngw"%" "e ontrated not to do75 -"e seond would over t"e present ase5 But %t potent%ally "asw%de appl%at%on5 %r Guenter -re%tel D#$ 5he /aw of Contract=10t" edn$ 1333& p ++'+3$ "as?uest%oned t"e soundness o. t"e oservat%ons o. t"e #ourt o. AppealH see also t"e valualeomment y !anet 67ull%van$ 7Re.let%ons on t"e role o. rest%tut%onary damages to protetontratual e>petat%ons7 to e pul%s"ed& and 9ano" agan$ 7Rest%tut%onary damages .orrea" o. ontratH An e>er%se %n pr%vate law t"eory7 2000& 11& -"eoret%al n?u%r%es %n Law 11,5

am not at present w%ll%ng to endorse t"e road oservat%ons o. t"e #ourt o. Appeal5 E>ept%onsto t"e general pr%n%ple t"at t"ere %s no remedy .or d%sgorgement o. pro.%ts aga%nst a ontratreaker are est "ammered out on t"e anv%l o. onrete ases5

n t"e "ear%ng e.ore t"e 9ouse :r Ross #ranston D#$ t"e ol%%tor General$ %n a t"oug"t.ul andare.ul spee" argued .or a reogn%t%on o. an at%on .or d%sgorgement o. pro.%ts aga%nst a ontratreaker w"ere .our ond%t%ons are .ul.%lled5 1& -"ere "as een a rea" o. a negat%ve st%pulat%on52& -"e ontrat reaker "as ota%ned t"e pro.%t y do%ng t"e very t"%ng w"%" "e prom%sed not to


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do5 *& -"e %nnoent party %n t"%s ase t"e #rown as represented y t"e Attorney General& "as aspe%al %nterest over and aove t"e "ope o. a ene.%t to e assessed %n monetary terms5 4&pe%.% per.ormane or an %npla%n t"e spe%.%ons%derat%ons w"%" lead me to onlude t"at %t %s r%g"t on a pr%n%pled as%s to develop t"e law%n a way w"%" overs t"%s ase and ot"er ases s"ar%ng mater%ally s%m%lar .eatures5

:y Lords$ %t "as een "eld at .%rst %nstane and %n t"e #ourt o. Appeal t"at Blake %s not a .%du%ary5-"%s %s not an %ssue e.ore t"e 9ouse5 But$ as my nole and learned .r%end Lord @%"olls o.B%rken"ead "as oserved$ t"e present ase %s losely analogous to t"at o. .%du%ar%es ompare)eading v A-2(13,1) 1 All ER 1$ (13,1) A# ,0&5 . t"e %n.ormat%on was st%ll on.%dent%al$ Blakewould %n my v%ew "ave een l%ale as a .%du%ary5 -"at would e so desp%te t"e .at t"at "e le.t t"e

%ntell%gene serv%es many years ago5 -"e d%st%nt%ve .eature o. t"%s ase %s$ "owever$ t"at Blakegave an undertak%ng not to d%vulge any %n.ormat%on$ on.%dent%al or ot"erw%se$ ota%ned y "%mdur%ng "%s work %n t"e %ntell%gene serv%es5 -"%s ol%gat%on st%ll appl%es to Blake5 9e was$t"ere.ore$ %n regard to all %n.ormat%on ota%ned y "%m %n t"e %ntell%gene serv%es$ on.%dent%al ornot$ %n a very s%m%lar pos%t%on to a .%du%ary5 -"e reason o. t"e rule apply%ng to .%du%ar%es appl%esto "%m5 eondly$ ear %n m%nd t"at t"e endur%ng strengt" o. t"e ommon law %s t"at %t "as eendeveloped on a ase y ase as%s y


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#$%%%& ' All () *+, at '%,

(2000) 1 All ER 203$ (2000) 2 =LR ,4&5 n t"%s ase t"e only relevant o..ene ould e t"e"and%ng over y Blake o. t"e manusr%pt to t"e pul%s"ers5 9e "as not een onv%ted o. t"ato..ene5 G%ven t"e l%m%tat%ons upon t"e power to on.%sate are.ully la%d down y Parl%ament %t %sa very strong t"%ng .or a ourt to reate a power to on.%sate d%retly or %nd%retly t"e proeeds o.r%me5 A.ter all$ t"e onst%tut%onal .unt%on o. t"e ourts %n reat%ng law does not go eyond .%ll%ngspaes le.t vaant y Parl%ament5 Lastly$ %t "as een a long'stand%ng pr%n%ple o. t"e ommon lawt"at$ asent leg%slat%ve aut"or%sat%on$ a ourt may not on.%sate t"e property o. a %t%Men see4alone v Comr of .olice of the 4etropolis(133) 1 All ER 2,$ (13+0) DB 43$ !ebb7s ase (2000)

All ER 203 at 22*'22,$ 22$ (2000) 2 =LR ,4 at ,1',*$ ,4$ per :ay and P%ll L!!&5 -"%spr%n%ple must also apply to a ourt grant%ng an %nplo%t su" %n.ormat%on5 ts purpose and


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oserve t"e r%m%nal law5 Between 13,1 and 130$ "e d%slosed valuale serets to .ore%gnagents5 9e was later .ound out and %n 131 "e was$ on "%s own plea$ onv%ted o. .%ve o..enesunder t"e 1311 At and sentened to 42 years7 %mpr%sonment5 9e esaped %n 13 and .led to:osow5

n 13+3$ 2+ years a.ter "%s onv%t%on$ Blake entered %nto an agreement w%t" !onat"an #ape Ltd$an Engl%s" ompany$ to pul%s" a ook to e wr%tten y "%m

#$%%%& ' All () *+, at '%

aout "%s l%.e .rom 1344 onwards5 9e del%vered t"e manusr%pt y t"e end o. t"at year and t"eook was pul%s"ed %n eptemer 13305

-"e Government$ "owever$ d%d not take any at%on aga%nst t"e pul%s"ers !onat"an #ape Ltdeven t"oug" t"e Government knew o. t"e e>%stene o. t"e ook e.ore %t was pul%s"ed5 @e%t"erBlake nor anyone else "ad soug"t t"e Government7s perm%ss%on .or t"e pul%at%on5 t %s aepted

t"at$ y del%ver%ng t"e manusr%pt to !onat"an #ape Ltd$ Blake omm%tted an o..ene under t"e1311 At or %ts suessor$ t"e 13+3 At& and roke t"e ontratual undertak%ng w"%" "e "adg%ven %n 13445 t %s also aepted t"at %n 13+3 and 1330$ "ad %t "osen to do so$ t"e #rown ould"ave appl%ed .or an %n


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t"e #rown respons%le .or ass%st%ng %n up"old%ng t"e r%m%nal law5 n t"%s apa%ty %t %s open to "%mto apply .or an %n


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t"at %t annot say t"at %t w%ll ever e %n a pos%t%on to make use o. t"e prov%s%ons o. t"e #r%m%nal!ust%e At 13++ and t"e Proeeds o. #r%me At 133,5 t does not say t"at t"e payment o. t"e;30$000 y !onat"an #ape Ltd to Blake would amount to t"e omm%ss%on o. any r%m%nal o..eney e%t"er !onat"an #ape Ltd or Blake5 t aepts t"at %t "as no d%ret r%g"t o. reourse aga%nst

!onat"an #ape Ltd %t %s on.%ned to la%m%ng some pul% law or pr%vate law remedy aga%nstBlake5 t now aepts t"at %ts or%g%nal la%m t"at %t "as e?u%tale or .%du%ary or propr%etary r%g"tsaga%nst Blake annot e susta%ned5 t annot la%m ompensatory damages .or rea" o. ontrateause %t "as su..ered no loss as a result o. t"e pul%at%on5

="at t"en was le.tJ C%rst t"ere was t"e pul% law la%m to an %nter%m %npress and de.%nedprov%s%on .or a ?ual%.%ed grant o. su" a power5 #.A-2 v De 3eyser1s )oyal 0otel /td(1320) A#,0+$ (1320) All ER Rep +05& -"e #rown aepted t"at %t ould not real%st%ally say t"at %t wouldever e %n a pos%t%on to %nvoke t"e statutory powers5 -"e %n


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or %n e?u%ty to t"e pla%nt%..5 Property %nludes an %nterest %n property5 -"en t"ere are r%g"tsreogn%sed %n e?u%ty su" as t"ose w"%" ar%se .rom a .%du%ary relat%ons"%p5 -"ese r%g"ts g%ve r%seto rest%tut%onary remed%es %nlud%ng t"e remedy o. aount w"%"$ depend%ng on t"e%rumstanes$ ould also der%ve .rom a ommon law relat%ons"%p su" as ageny5 -"en$ aga%n$

t"ere are t"e r%g"ts now grouped under t"e "ead%ng o. t"e law o. rest%tut%on or unpenset"at enr%"ment "as taken plae5 n so .ar as t"e appropr%ate remedy %s t"e payment o. money ort"e del%very up o. a "attel or goods %s onerned t"e ommon law ould prov%de %t %n so .ar as %tre?u%red some ot"er remedy or t"e reogn%t%on o. an e?u%tale r%g"t$ t"e "anery pressed %nmonetary terms$ t"e order w%ll e .or t"e payment o. money ut t"%s does not alter t"e "arater

o. t"e remedy or o. t"e r%g"t e%ng reogn%sed5 9e gets t"e money eause %t was "%s property or"e was %n some ot"er way ent%tled to %t5 t %s st%ll t"e en.ored per.ormane o. an ol%gat%on5 -"esame %s t"e ase w"ere an %n


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and seondary ol%gat%on see .hoto .roduction /td v Securicor 5ransport /td(13+0) 1 All ER,,$ (13+0) A# +2&5 -"e la%m %s .or damages %n order to put t"e pla%nt%.. %n t"e same pos%t%on as%. t"e ontrat "ad een per.ormed5 t %s a substitute.or per.ormane5 -"at %s w"y %t %s neessar%lyompensatory5 -"e error %s to desr%e ompensat%on as relat%ng to a loss as %. t"ere "as to e

some %dent%.%ed p"ys%al or monetary loss to t"e pla%nt%..5 n t"e vast mapense5 9%s damages must e assessed at a lower .%gure5 -"e spee" o.Lord :ust%ll (133,) * All ER 2+ at 2'2+$ (133) A# *44 at *,3'*1& %s %llum%nat%ng5 -"e loss%s a reasonale valuat%on o. w"at t"e pla%nt%.. oug"t to "ave "ad ut d%d not get5 t %s not ated .rom t"e de.endant as t"e pr%e o. "%s onsent to t"e development5 -"%s %san e>ample o. ompensatory damages5 -"ey are damages .or rea"5 -"ey do not %nvolve anyonept o. rest%tut%on and so to desr%e t"em %s an error5 -"e error omes aout eause o. t"eassumpt%on t"at t"e only loss w"%" t"e pla%nt%.. an "ave su..ered %s a redut%on %n t"e value o.t"e dom%nant tenement5 t %s .or t"%s reason t"at agree w%t" my nole and learned .r%end Lord@%"olls t"at t"e de%s%on %n !rotham .ar (state Co /td v .arside 0omes /td(134) 2 All ER*21$ (134) 1 =LR 3+ %s to e pre.erred to t"at %n Surrey CC v Bredero 0omes /td(133*) * All

ER 0,$ (133*) 1 =LR 1*1 see also ;aggard v Sawyer(133,) 2 All ER 1+3$ (133,) 1 =LR 23&5 would$ "owever$ add t"at t"e order proposed y your Lords"%ps does not re.let t"%s pr%n%ple %tgoes .urt"er5 t does not award to t"e #rown damages .or rea" o. ontrat assessed yre.erene to w"at would e t"e reasonale pr%e to pay .or perm%ss%on to pul%s"5 t awards t"e#rown damages w"%" e?ual t"e w"ole amount owed y !onat"an #ape Ltd to Blake5 -"at %s aremedy ased on propr%etary pr%n%ples w"en t"e neessary propr%etary r%g"ts are asent5

-"e pr%n%ple o. ompensat%on %s ot" %ntelletually sound as t"e remedy .or rea" and prov%dest"e


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orret analys%s d%slose t"e supposed need to e>tend t"e oundar%es o. remed%es .or rea" o.ontrat5 -"e reason w"y t"e #rown s"ould not reover damages %n t"e present ase der%ves.rom t"e e>ept%onal pul% law nature o. t"e undertak%ng w"%" Blake gave5 . t"e relat%ons"%p"ad een a ommer%al one %t %s proale t"at y 13+3 t"e undertak%ng would e regarded as

spent or no longer en.oreale$ ut %. st%ll en.oreale t"e rea" o. %t would "ave supportedompensatory damages on t"e 7ompulsory pur"ase7 as%s5#$%%%& ' All () *+, at '

-"e e>amples g%ven y my nole and learned .r%end are e>amples o. ompensatory damages5-"e Earl o. 9alsury L#7s d%n%ng room "a%r %s no d%..erent unless t"e error w"%" "ave %dent%.%ed%s made5 9e would "ave lost t"e use o. t"e "a%r and %t$ l%ke ot"er su" amen%ty value assets$ ane assessed y re.erene to t"e sum w"%" "as een e>pended on %ts a?u%s%t%on and/orma%ntenane or %nterest upon %ts ap%tal value dur%ng t"e per%od o. depr%vat%on5 -"e supposedprolem ar%ses .rom ask%ng t"e wrong ?uest%on not .rom ree%v%ng t"e wrong answer5

must also sound a .urt"er note o. warn%ng t"at %. some more e>tens%ve pr%n%ple o. award%ng non'

ompensatory damages .or rea" o. ontrat %s to e %ntrodued %nto our ommer%al law$ t"eonse?uenes w%ll e very .ar'rea"%ng and d%srupt%ve5 do not el%eve t"at su" %s t"e %ntent%ono. your Lords"%ps ut %. ot"ers are tempted to try to e>tend t"e de%s%on o. t"e present e>ept%onalase to ommer%al s%tuat%ons so as to %ntrodue rest%tut%onary r%g"ts eyond t"ose presentlyreogn%sed y t"e law o. rest%tut%on$ su" a step w%ll re?u%re very are.ul ons%derat%on e.ore %t %saeded to5

:y Lords$ :r #layton was r%g"t to say t"at t"e e>ept%onal .ats o. t"%s ase "ave een r%t%al to%ts de%s%on5 -"e pol%y w"%" %s e%ng en.ored %s t"at w"%" re?u%res Blake to e pun%s"ed ydepr%v%ng "%m o. any ene.%t .rom anyt"%ng onneted w%t" "%s past deplorale r%m%nal ondut5our Lords"%ps ons%der t"at t"%s pol%y an e g%ven e..et to w%t"out a departure .rom pr%n%ple5 must venture to d%sagree5 would allow t"e appeal and d%sm%ss t"e ross'appeal5

Appeal dismissed" Cross-appeal allowed"

#el%a Co> Barr%ster5


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Documents

Attorney General v Blake (Jonathan Cape Ltd,