Circuit Systems Ltd. (In Liquidation) and Another v. Zuken-Redac (U.K) Ltd. (Formerly Racal-Redac (U.K) Ltd.) and Norglen Ltd. and Others (A.P.) (In Liquidation) v. Reeds Rains Prudential Ltd. and Others, (1997)

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HOUSE OF LORDS

Lord Browne Wilkinson

Lord Lloyd of Berwick

Lord Nolan

Lord Hoffmann

Lord Clyde

OPINIONS OF THE LORDS OF APPEAL FOR JUDGMENT IN THE CAUSE

CIRCUIT SYSTEMS LTD. (IN LIQUIDATION) AND ANOTHER

(RESPONDENTS)

ZUKEN-REDAC (U.K.) LTD.

(FORMERLY RACAL-REDAC (U.K.) LTD.)

(APPELLANTS)

and

NORGLEN LTD. AND OTHERS (A.P.) (IN LIQUIDATION)

(RESPONDENTS)

REEDS RAINS PRUDENTIAL LTD. AND OTHERS

(APPELLANTS)

ON 27 NOVEMBER 1997

LORD BROWNE-WILKINSON

My Lords,

I have had the advantage of reading in draft the speech to be delivered by my noble and learned friend, Lord Hoffmann. For the reasons which he gives, I would dismiss both of these appeals.

LORD LLOYD OF BERWICK

My Lords,

I have had the advantage of reading in draft the speech prepared by my noble and learned friend, Lord Hoffmann. For the reasons he has given, I would dismiss these appeals.

LORD NOLAN

My Lords,

I have had the advantage of reading in draft the speech prepared by my noble and learned friend, Lord Hoffmann. For the reasons he gives, I would dismiss these appeals.

LORD HOFFMANN

My Lords,

1. Companies and legal aid

The cost of obtaining justice in England, only too often prohibitive, is a current social problem which goes to the roots of civil society. The provision of a system of justice to resolve disputes between citizens is one of the most ancient and important duties of the state. But the cost of litigation is today so high that the majority of people are in practice unable to seek redress for the wrongs they have suffered. This applies not only to individuals but also to companies with modest resources. The position of a defendant, particularly when opposed by a legally aided or impecunious plaintiff, is equally unenviable. These two appeals both concern companies which went into insolvent liquidation while pursuing claims in legal proceedings and could not afford to continue. Individuals who lack means are in principle entitled to legal aid. But since its inception in 1949, the legal aid scheme has altogether excluded companies from its scope. Section 2 of the Legal Aid and Advice Act 1949 said tha...

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