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Safeway, which is to be fined by the Office of Fair Trading for breaching the Competition Act 1998, is entitled in principle to recover the fine from the employees and directors who caused it to breach the Act.

The High Court held on a summary judgment application that such a claim is not barred by public policy or by the principle of ex turpi causa because Safeway is liable only as a result of the acts of its employees and directors.

This is the first case in which the courts have held that a company is entitled to recover a fine or penalty from its employees and directors.

Robert Anderson QC and Tristan Jones successfully represented Safeway Stores.

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