Case - Boddington v Lawton

[1994] ICR 478, High Court Chancery Division - Lord Hendy QC

Application by managing trustees of the Moss Side Special Hospital Branch of the Prison Officers Association for a declaration that they were at liberty to implement a contract which had been declared unenforceable by May J on 18.11.93, namely to expend association funds to pay for the defence of association members to claims brought by hospital patients inter alia for false imprisonment during a period of industrial action.

HELD: If A and B pay money to T but under the agreement between the three of them T is required to pay that money under an unenforceable agreement through being in restraint of trade to B, in the absence of fraud or mistake, A, if he resiles from the agreement would be unable to. compel repayment of that money or obtain any legal remedy for its recovery. Accordingly the Court would not prevent the trustees from making the payment of the costs or give any remedy to association members who resiled from the agreement.

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