Foster and others v British Gas plc: ECJ 12 Jul 1990

The defendants (BGC) were nationalised suppliers of gas. BGC was by statute a body with a legal persona operating under the supervision of the authorities. Its members were appointed by the Secretary of State, who also determined their remuneration. The statutory objective set was the development and maintenance of an efficient, co-ordinated and economical supply of gas for Great Britain. In conjunction with the Secretary of State it was to settle a research programme into matters which affected the supply of gas. Additionally, the Secretary of State had power to require BGC to report to him and comply with any directions he might give. The court asked whether British Gas was part of the State before it was privatised?
Held:

  • [A Directive] may be relied upon in a claim for damages against a body, whatever its legal form, which has been made responsible, pursuant to a measure adopted by the State, for providing a public service under the control of the State and has for that purpose special powers beyond those which result from the normal rules applicable in relation to individuals
  • ECJ has jurisdiction in proceedings for a preliminary ruling to determine the categories of person against whom the provisions of a directive may be relied on. It is for the national courts . . to decide whether a party to proceedings before them falls within one of the categories so defined.
  • must provide a public service pursuant to a measure adopted by the State
  • must be a public service under the control of the State
  • must have for that purpose special powers beyond those which result from the normal rules applicable in relation to individuals All criteria were satisfied in this case. All criteria were important.
    The HL had held the British Gas Corporation (before privatisation) met the criteria of the ECJ for defining an emanation of state and that British Gas was bound by vertical direct effect.
    It had been held in a series of cases that provisions of a European directive could be relied on against organisations and bodies which were subject to the authority or control of the State or had special powers beyond those which result from the normal rules applicable to relations between individuals. Reference was made to a number of its decisions to illustrate this point.
    Held: ‘It follows from the foregoing that a body, whatever its legal form, which has been made responsible, pursuant to a measure adopted by the State, for providing a public service under the control of the State and has for that purpose special powers beyond those which result from the normal rules applicable in relations between individuals is included in any event among the bodies against which the provisions of a directive capable of having direct effect may be relied upon.’
    ECJ 1. Unconditional and sufficiently precise provisions of a directive may be relied upon against organizations or bodies which are subject to the authority or control of the State or have special powers beyond those which result from the normal rules applicable in relations between individuals. They may in any event be relied upon against a body, whatever its legal form, which has been made responsible, pursuant to a measure adopted by the State, for providing a public service under the control of the State and has for that purpose special powers beyond those which result from the normal rules applicable in relations between individuals.
    2. Article 5(1 ) of Directive 76/207 on equal treatment for men and women as regards access to employment and working conditions is a provision which is unconditional and sufficiently precise to be relied on by an individual and to be applied by the national courts.
  • Judges:

    Sir Gordon Slynn, P

    Citations:

    [1991] 2 WLR 258, [1990] 2 CMLR 833, 2 CMLR 833 ECJ, C-188/89, [1990] ECR I-3313, [1990] EUECJ C-188/89, [1990] IRLR 353, [1990] 3 All ER 897, [1991] 1 QB 405, [1991] ICR 84

    Links:

    Bailii

    Statutes:

    Directive 1976 EEC/76/207 5(1)

    Cited by:

    CitedParochial Church Council of the Parish of Aston Cantlow and Wilmcote with Billesley, Warwickshire v Wallbank and another HL 26-Jun-2003
    Parish Councils are Hybrid Public Authorities
    The owners of glebe land were called upon as lay rectors to contribute to the cost of repairs to the local church. They argued that the claim was unlawful by section 6 of the 1998 Act as an act by a public authority incompatible with a Convention . .
    CitedCameron and others v Network Rail Infrastructure Ltd QBD 18-May-2006
    The claimant sought damages from the defendant after the death of her father in the Potters Bar rail crash. The defendant applied for summary judgment saying that English law did not recognise a claim by a family member of a deceased save through . .
    CitedNorth Wales Training and Enterprise Council Ltd v Astley and others HL 21-Jun-2006
    Civil servants had been transferred to a private company. At first they worked under secondment from the civil service. They asserted that they had protection under TUPE and the Acquired Rights Directive. The respondent said that there had only been . .
    At ECJFoster v British Gas plc HL 1991
    The House was asked for a preliminary ruling before a referral of the case to the ECJ as to whether the applicants could rely as against the British Gas Corporation on an unimplemented Council Directive. Although the gas industry had been privatised . .
    Lists of cited by and citing cases may be incomplete.

    European, Utilities, Employment, Company

    Updated: 01 June 2022; Ref: scu.160286