Dubai Aluminium Co Ltd V Salaam
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''Dubai Aluminium Co Ltd v Salaam'' [2002
UKHL 48
is an English vicarious liability case, concerning also breach of trust and dishonest assistance.


Facts

Salaam's solicitors were seeking contribution for damages because of their former client. Mr Salaam had defrauded Dubai Aluminium Co Ltd. Mr Salaam's solicitors were Amhurst Brown Martin & Nicholson, and they had drafted documents for him. Amhurst's had been sued and had settled a $10m claim. Then, they sought contribution from Mr Salaam under the Civil Liability (Contribution) Act 1978. This required showing that Amhurst's was liable for wrongful acts by Mr Anthony Amhurst, under the Partnership Act 1890 section 10.


Judgment


Court of Appeal

The majority of the Court of Appeal, 001QB 113
Evans LJ Sir Anthony Howell Meurig Evans, (born 11 June 1934) is an internationally known jurist, judge, and barrister, and a former Lord Justice of Appeal. He currently holds the office of Chief Justice of the Dubai International Financial Centre C ...
and
Aldous LJ Sir William Aldous (17 March 1936 – 17 March 2018) was an English judge and a judge in the Gibraltar Court of Appeal. Biography Born in Suffolk, Aldous was the son of barrister Guy Aldous QC and his wife, Gill Henson, daughter of Gino Hen ...
, held that the firm was not vicariously liable for the dishonest acts of Mr Salaam, and so was not entitled to a contribution from Mr Salaam for settling the claim by Dubai Aluminium.
Turner J Turner may refer to: People and fictional characters *Turner (surname), a common surname, including a list of people and fictional characters with the name * Turner (given name), a list of people with the given name *One who uses a lathe for turni ...
dissented. Mr Salaam argued that wrongful acts that a partnership was vicariously liable for only extended to common law torts, not equitable wrongs like dishonest participation in a breach of trust. Jonathan Sumption QC acted for the solicitors.


House of Lords

The House of Lords held that Amhurst's was entitled to a contribution (which amounted to indemnity) from Mr Salaam. The 1890 Act was not restricted to tortious wrongs, and Mr Amhurst's actions were in the ordinary course of the business (''
Lister v Hesley Hall Ltd ''Lister v Hesley Hall Ltd'' 001UKHL 22is an English tort law case, creating a new precedent for finding where an employer is vicarious liability, vicariously liable for the torts of their employees. Prior to this decision, it had been found tha ...
''). So the firm was jointly liable for the damage, and Rix J had been wrong to take account of the firm's innocence when assessing Mr Salaam's contribution for a settlement. Given that Mr Salaam still possessed the proceeds of fraud it was equitable for him to pay the surplus for the firm's $10m liability.
Lord Nicholls Donald James Nicholls, Baron Nicholls of Birkenhead, (25 January 1933 – 25 September 2019) was a British barrister who became a Law Lord (Lord of Appeal in Ordinary). Biography Nicholls was educated at Birkenhead School, before reading ...
gave the first judgment and said the following on vicarious liability:
Lord Millett Peter Julian Millett, Baron Millett, , (23 June 1932 – 27 May 2021) was a British barrister and judge. He was a Lord of Appeal in Ordinary from 1998 to 2004. Biography Early life The son of Denis and Adele Millett, he was educated at Har ...
gave a concurring judgment. In
obiter dicta ''Obiter dictum'' (usually used in the plural, ''obiter dicta'') is a Latin phrase meaning "other things said",'' Black's Law Dictionary'', p. 967 (5th ed. 1979). that is, a remark in a legal opinion that is "said in passing" by any judge or arb ...
he said that the claim could be based on dishonesty, like for liability in assisting breach of trust. At the same time it could ‘be based simply on the receipt, treating it as a restitutionary claim independent of any wrongdoing.’ Lord Hobhouse gave a short concurring judgment.
Lord Slynn Gordon Slynn, Baron Slynn of Hadley (17 February 1930 – 7 April 2009) was a British judge and Advocate General of the European Court of Justice. He particularly specialised in European law. He was a Lord of Appeal in Ordinary. Early life ...
agreed with Lord Nicholls. Lord Hutton agreed with Lord Nicholls and Lord Millett.


See also


Notes

{{reflist, 2 English trusts case law