Slowly Getting To Grips With Unjust Enrichment And Jersey's Legal Hot Potatoes (CMC v Forster)

Private Client analysis: This long-running fraud case illustrates the difficult task that the Channel Island courts sometimes have in comparing and distinguishing between developed principles of English law and foundational elements of the customary law of the islands which borrow from French and other civilian law jurisdictions.

It tackles two 'hot potatoes' in Jersey law. The first is the question of the rights between wrongdoers to claim an indemnity or contribution outside of the scope of the limited statutory scheme between joint tortfeasors and, secondly the extent and nature of the doctrine of unjust enrichment in Jersey law. Nic Journeaux, partner, at Ogier in Jersey, comments on the case CMC v Forster and others [2019] JRC 202].

What are the practical implications of this case?

This Jersey fraud case has been going on for over three years and is still dealing with attempts to limit discovery this most recent interlocutory judgment reveals.

On the procedural front, it demonstrates a detrimental aspect of the appeal procedure against interlocutory orders in Jersey. Under the Jersey court rules those disaffected with the decision of the Master of the Royal Court on interlocutory applications (including strike out and summary judgment applications) can have a second bite at the cherry, so to speak, by a full de novo appeal rehearing in the Royal Court itself. This inevitably slows down the proceedings and increases costs.

The wider implications of the case are the interest that has been shown in the development of legal argument in the strike out and summary judgment applications in the third-party proceedings concerning two legal hot potatoes' in Jersey law. The first is the question of the rights between wrongdoers to claim an indemnity or contribution outside of the scope of the limited statutory scheme between joint tortfeasors and, secondly and more fundamentally, the extent and nature of the doctrine of unjust enrichment in Jersey law. The latter issue illustrates the difficult task that the Channel Island courts sometimes have in comparing and distinguishing between developed principles of English law and foundational elements of the customary law of the islands borrowing as it does from French and other civilian law jurisdictions.

What was the background?

The plaintiffs are Kenyan companies who import vehicles from overseas vehicle manufacturers and supply them to the East African market. They seek relief in respect of the...