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England and Wales High Court (Commercial Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Commercial Court) Decisions >> Onecom Group Ltd & Anor v Eve Connect Ltd & Ors [2025] EWHC 885 (Comm) (04 April 2025) URL: https://www.bailii.org/ew/cases/EWHC/Comm/2025/885.html Cite as: [2025] EWHC 885 (Comm) |
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BUSINESS AND PROPERTY COURTSOF ENGLAND AND WALES
COMMERCIAL COURT (KBD)
The Rolls Building 7 Rolls Buildings Fetter Lane London EC4A 1NL |
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B e f o r e :
(sitting as a Judge of the High Court)
____________________
(1) ONECOM GROUP LIMITED (2) ONECOM PARTNERS LIMITED |
Claimant |
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- and – |
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(1) EVE CONNECT LTD (2) KM TELECOM LTD (formerly known as FTP GROUP (TELECOM) LIMITED) (3) MR. JAMES PALMER (4) MR. KEVIN MITCHELL |
Defendant |
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2nd Floor, Quality House, 6-9 Quality Court, Chancery Lane, London WC2A 1HP.
Telephone No: 020 7067 2900. DX 410 LDE
Email: info@martenwalshcherer.com
Web: www.martenwalshcherer.com
MR. DERRICK DALE KC and MR. MARCUS FIELD (instructed by Baker & McKenzie LLP) appeared for the First and Third Defendants.
____________________
Crown Copyright ©
HIS HONOUR JUDGE PELLING KC:
"The application is made formally ex parte and Cs will comply with their duty of full and frank disclosure in their witness evidence (as to which see further below), though Cs intend to notify Ds of the hearing in advance. This approach is because of the urgency outlined below and concern as to actions Ds may take to harm Cs' business if they have extended notice of the hearing."
"2. In the course of preparing our clients' reply evidence for the Application, it has come to light that our instructions were incorrect in relation to whether Onecom sought to conceal the use of the Program from Eve Connect in May 2023. Without waiver of privilege, this came to the attention of Mr Glynn-Jones and the Claimants' counsel only late on the evening of 10 December 2024. As a result, paragraphs 21.1, 22.2, 22.5, 22.6 and 22.7 of the Claimants' RDCC were incorrect and the reliance on those paragraphs at paragraphs 73, 82, 109.1 ... and 109.4 of Glynn-Jones 2 was also incorrect. Reliance on paragraphs 20-23 of the RDCC is withdrawn while we and Onecom investigate the extent of the inaccuracies in those paragraphs. As noted below, we will shortly bring forward an amended RDCC.
"3. An additional point has arisen, again in the context of preparing the Claimants' reply evidence for the Application, concerning the frequency of Onecom Partners' use of Customer logins to access the Portal. Onecom's investigations in this regard are ongoing, but it appears that the characterisations of this use as 'on occasion' in Glynn-Jones 2 at paragraphs 82.2 and 91 (which were drafted on instructions) and 'ad hoc' in Craggs 1 at paragraph 28 are likely to be inaccurate, and that use of Customer logins within Onecom Partners to access the Portal was more widespread than Mr Craggs understood at the time those witness statements were given.
"4. We and Onecom regret the above inaccuracies. We will be filing a short, corrective statement with the Court as soon as possible, to correct the record.
"5. In light of the above, the Claimants will not pursue the Application. We therefore invite you to agree that the Hearing be vacated. We enclose with this letter a draft Order for your consideration. The draft Order provides that all parties be released from their undertakings and that the Claimants agree to pay the Defendants' costs of the Application, to be assessed if not agreed ..."
In the end, an order was agreed, broadly in the terms proposed, but with the claimants paying the defendants' costs of and occasioned by the injunction application on the indemnity basis.
"I make this witness statement on my and on the Claimants' behalf pursuant to my duty as the solicitor on record, having discovered that false or inaccurate evidence has been put on the file, to put the matter right and correct the errors at the earliest opportunity. Accordingly, in this statement I correct the inaccuracies that I am now aware of in the Claimants' Amended Reply to Defence of the First and Third Defendants and Defence to Counterclaim dated 3 May 2024 (the 'RDCC'), in Glynn-Jones 2, in Christian Craggs' first witness statement dated 18 November 2024 ('Craggs 1'), to which reference was also made in the Claimants' skeleton argument for the hearing on 22 November 2024 ..."
Mr. Glynn-Jones then turned to the errors highlighted in the correspondence referred to a moment ago. The "Program" he refers to is a program which was used, as I understand it, to obtain access to the portal, the role of which I have already explained. Under the subheading "Errors in the Claimants' evidence relating to the Program", Mr. Glynn-Jones stated as follows:
"First, in the course of preparing the Claimants' reply evidence for the Application, it has come to light that my firm's instructions were incorrect in relation to whether Onecom sought to conceal the use of the Program from Eve Connect in May 2023. Without waiver of privilege, the matter first came to my attention (and that of the Claimants' counsel team) late in the evening of 10 December 2024. We continued to investigate the issue on the morning of 11 December 2024. We wrote to the Defendants informing them of the inaccuracies and the fact the Claimants would be withdrawing the Application by letter on 11 December 2024 ...
"12. In short, it is now apparent that, contrary to paragraphs 22.2, 22.5, 22.6 and 22.7 of the RDCC, at least one employee of Onecom Partners was seeking, in May 2023, to conceal Onecom Partners' use of the Program from the Defendants. Accordingly, my reliance on those paragraphs of the RDCC at paragraphs 73, 82, 109.1 ... and 109.4 of Glynn-Jones 2, and reliance on the same at paragraph 35 of the Claimants' Skeleton was also incorrect ..."
In relation to the claimants' evidence, and under the subheading "Error in the Claimants' evidence in relation to the frequency of use of Customer logins to access the Portal", materially Mr. Glynn-Jones stated this:
"15. Without waiver of privilege, on or around 28 November, I became aware that it was possible that usage of Customer logins to the Portal had been in the past more widespread than could fairly be described as occasional. The precise nature and extent of the use was, and remains, unclear, because it is difficult to establish the occasions on which access was actually obtained to the Portal. Further investigation into the issue is ongoing but it does appear that the assertion (made on instructions) in Glynn-Jones 2 that access occurred only 'on occasion' is incorrect. Reliance on this assertion is therefore withdrawn and, as a matter of prudence, reliance on the reference in Craggs 1 to use being 'ad hoc' is also withdrawn."
A draft amended reply has been produced, the contents of which I do not propose to set out in this judgment, but which is corrective broadly in line with the contents of the evidence to which I have referred. As I have said, the injunction application was then withdrawn, the claimants agreed to pay the defendants' costs to be assessed on the indemnity basis, and thereafter, the defendants issued the present application.
"Except where these Rules provide otherwise, the court may ... (p) take any ... step or make any ... order for the purpose of managing the case and furthering the overriding objective, including hearing an Early Neutral Evaluation with the aim of helping the parties settle the case."
It is perhaps appropriate to remember that CPR rule 1.1(2) provides that the overriding objective is to deal with cases justly and at proportionate cost, and that CPR rule 1.1(2) identifies, as included within that concept, at (b), the saving of expense, at (d), ensuring that cases are dealt with expeditiously and fairly, at (e), allotting to it an appropriate share of the court's resources, while taking into account the need to allot resources to other cases, and at (f), enforcing compliance with rules, practice directions and orders.
"I have no doubt that in an appropriate case, exemplified by the XYZ case and subject to the limitations apparent from Thirwell J's decision ... the court's case management powers under CPR r 3.1 do extend to requiring disclosure of an ATE policy when its disclosure is necessary to enable the court proportionately and efficiently to exercise its case management function."
However, Hildyard J defined what was meant by "case management function" at paragraph 105 of his judgment in these terms:
"... in my view the court should not be quick to cut down the general power of case management by reference to other provisions directed to other matters. A sufficient control is provided, as in the XYZ case, by being careful to apply the case management power only to what is genuinely a case management issue, rather than by reference to some general mantra, be it 'cards on the table' or the like."
As he concluded on the facts of that case, at paragraph 114.
"... the first question becomes, therefore, whether on true analysis the defendants are seeking to invoke a case management power in aid of the proportionate, expeditious and efficient management of the proceedings; or whether they are in reality seeking disclosure with a view to enforcement or some other objective not amounting to case management in the proper sense (reflecting the distinction drawn in the XYZ case)."
"But suppose that, before the action comes on for trial, facts come to the knowledge of the solicitor which show clearly that the original affidavit by his client as defendant was untrue and that important documents were omitted from it, what then is the duty of the solicitor? I cannot doubt that his duty to the plaintiff, and to the Court, is to inform his client that he, the solicitor, must inform the plaintiff's solicitor of the omitted documents, and if this course is not assented to he must cease to act for the client. He cannot honestly contemplate the plaintiff failing in the action owing to his client's false affidavit. That would, in effect, be to connive in a fraud and to defeat the ends of justice. A solicitor who has innocently put on the file an affidavit by his client which he has subsequently discovered to be certainly false owes it to the Court to put the matter right at the earliest date if he continues to act as solicitor upon the record. The duty of the client is equally plain ..."
"The object of the Court is to allow neither party to obtain a victory at the expense of truth. There must be an affidavit of the truth of the intended answer and of the terms in which it is proposed to file it."
There was, thus, a direction at that stage for an affidavit to affirm as true the proposed correction. This accords broadly with the approach in Myers v Elman (ibid). When the matter came back before the court, the Master of the Rolls identified that when the cause came on for trial, it would be important to ascertain whether the relevant event had occurred in 1826 or 1827 and then said this:
"I should be sorry to let fall a word which might imply that the Court considers it a trifling matter to allow a party who has solemnly declared one thing, to put in a second answer quite inconsistent with his former solemn statement. I have felt it necessary to require the party not only to account for the mistake, but to produce the answer in the very terms and words he pledges himself to swear it. Not being satisfied on a former occasion the case stood over."
What the Master of the Rolls is reported to have said in that paragraph is different from and rather more extended than what earlier in the report he is reported to have done initially. That makes it difficult to rely too heavily upon this authority for any purpose relating to the conduct of modern commercial litigation. I would say, however, that if and to the extent the case is authority for some general common law proposition that the court can or should order the filing of an affidavit which not only corrects an error however it was made but also gives an explanation as to how it was that a false or wrong statement came to be filed, then it is not one that I should follow, since I am bound by and should follow the later decision of the House of Lords in Myers (ibid) which, in my judgment, sets out comprehensively what the modern practice is in relation to situations of this sort.
"... by the time Dr Branney (a) signed his fifth witness statement; (b) signed the Amended Defence to the Points of Claim; and (c) gave his oral testimony under affirmation, he was well aware that his affidavit and witness statements were wrong and misleading and that the statement that sales had ceased in January 2019 was wrong, and he chose not to correct those errors in a way which would have been readily perceptible by the Claimants. It is also, regretfully, my finding that those omissions were dishonest."
Thus, what that case was concerned with was a situation where Dr. Branney had failed to comply with the duty that the House of Lords in Myers (ibid) had identified as being the duty he was required to comply with in the circumstances identified by the judge. That is of itself a sound ground for distinguishing this case from those that would apply in the circumstances of this case, and which are covered by the general principles identified in Myers (ibid).
"Dr. Branney has not done so. He has failed to comply with his affirmation. He was not honest with the court until asked specific questions about the additional sales. He had plenty of opportunities to come clean about the errors, but chose not to do so. I therefore find that his evidence is not to be trusted and I will accept it only where the claimants wish to rely on it, or it is corroborated by an independent source ..."
That case is significantly different from the present, therefore, because that case was concerned with the evaluation of evidence at trial, and was concerned with the manifest failure on the part of Dr. Branney to comply with his Myers duties, to which I have referred earlier in this judgment. Against that background, the judge then said this:
"Mistakes sometimes occur, but when a material mistake in a pleading, an affidavit or a witness statement, is discovered, the relevant parties and/or deponents, have a duty to bring that mistake to the attention of all other parties and the court as soon as practicable. What should have happened in this case is that, having discovered the additional sales on 26th September 2021, the defendant should have written through their solicitors to the claimants, setting out the errors and then sought to agree a way forward, which may have included amending pleadings -- this at least was done on the final day of the inquiry -- and a further witness statement setting out in detail how the error occurred and how it was discovered."
A number of points arise from that paragraph. First, it reflects what I have already said, which is the judge was addressing a situation where Dr. Branney had failed to comply with his Myers duties as the judge identified expressly in paragraph 49. The remaining contents of that paragraph, as I read it, is hypothetical, addressing what the parties might have done, had the defendants complied with his Myers duties. This judgment is not, therefore, authority for the proposition that the court has jurisdiction or at any rate should as a matter of discretion make an order such as is mentioned in paragraph 49, not least because none of the submissions which have been made in this case were apparently considered and no authority was identified by the judge that would have justified such an approach. This is unsurprising, at any rate to my eye, since the judge was not purporting to give a comprehensive ruling on what should happen in particular circumstances, but was articulating a hypothesis as to what might have happened. His focus was on his evaluation of the credibility of the witness concerned, following his cross examination. In other words the judgment says nothing about what should happen in circumstances such as this, nor did it need to in the circumstances.
"Since interrogatories tend to be directed towards both general questions in the case and also to specific fact, it is incumbent upon a company secretary, or a director or liquidator of the company, in answering interrogatories, to make all reasonable enquiries from the present and past officers and servants of the company so that the answers will reveal what was known to the company ..."
"In Matthews and Malek - Disclosure (fourth edition) ... the authors offer the view that where a response has been filed, that an interrogatory should not be changed without filing a correction; and that is said to be appropriate only with a witness statement explaining the need for the correction. A corrective affidavit is said to be permitted only with the consent of the parties. It is hard to see that practice being desirable in every case. The discretion of the court as to the order the court makes under this rule is undoubted. The circumstances under which a party may make an error in answering interrogatories can vary between thought-through, cunning or structured lies, at one extreme, to simple errors due to the multiplicity of material, difficulty in obtaining instructions or typographical and referencing errors, all of which are clearly at the other end of the spectrum. It is appropriate for a party who notices that answers to interrogatories are incorrect to immediately take steps to correct the answers and to offer a general explanation as to how this occurred. There should be immediate notice to the opposite party. If there is to be a change of factual narrative by reason of a ledger being checked or a computer record being noticed for the first time, or an agent being finally contacted who is able to give a materially different account of events, then this should be noted in the furnishing corrected interrogatories. These are errors, the explanation for which can be in aid of proof."
The judge then went on to consider how that may be applied, before saying this:
"The proper course ... is for this to be done in a timely and efficient manner as part of the cooperation that is expected of solicitors in bringing a case efficiently to trial. Clearly, the more germane the explanation, the more readily the issue can be finally thus disposed of in aid of efficiency in litigation. Where the errors occurred by reason of not following the obvious procedure of producing each question and then answering each question ... then that is really all that needs to be said. That assertion may be challenged in testimony, as to how such mistake could be made; but it seems that any reasonable person can see that the procedure currently adopted in our courts of answering hundreds of questions on three different documents solely by reference to number and sub number is likely to lead to this kind of error ..."