R (Datafin plc) v Panel for Takeovers and Mergers

R (Datafin plc) v Panel for Takeovers and Mergers [1987] QB 815 is a case involving UK company law and administrative law, which marked a major development in the scope of judicial review in English Law. It established that the decisions of a private body exercising public functions may be amenable to judicial review. Before Datafin, only bodies established by statute were so amenable, while private bodies could only be sued for their actions in contract or tort.

Facts

The Panel on Takeovers and Mergers is the City of London's self-regulating mechanism for dealing with mergers and acquisitions. The applicants complained about the conduct of their competitors in a take-over bid and were unhappy with the panel's decision. When they were refused leave to seek judicial review by the High Court, they appealed to the Court of Appeal.

The main issue facing the Court was whether to review the decision of a Panel set up under private law using the standards usually applied in administrative law.

Judgment

The Court of Appeal held that the powers exercised by the Panel (regulating take-overs and enforcing a code of conduct on them) were essentially in the domain of public law and formed part of the Government's scheme to regulate the City. Those affected had no choice but to submit to the Panel's jurisdiction. As a result, the Panel had the duty to act judicially and its decisions could be checked by means of judicial review. On the merits however, the Court found no ground to quash the disputed decision.

Lord Donaldson MR gave the leading judgment.

Signficance

This decision is important in the light of an increasing "privatisation" of public powers. In recent years, the government delegated many of its powers to formally private bodies, which nevertheless can make decisions affecting individual citizens and the society at large. Such decisions are now amenable to judicial review by courts.

Notes

External links

• Extracts from the judgment