2 Travel Group Plc (in Liquidation) v Cardiff City Transport Services, Competition Appeal Tribunal
T lost out and went into liquidation when B launched a competing service under which B was found by the Office of Fair Trading to be abusing its dominant position, contrary to the Competition Act. However, the OFT had benefited from immunity from a fine because it was a small undertaking. Nevertheless, T was still able to sue for damages, and in this case the Competition Appeal Tribunal awarded exemplary damages – ie damages to go beyond pure compensation and act as a deterrent to punish the wrongdoing. Instead of damages being for the £34,000 suffered, B had to pay £60,000 of exemplary damages. Exemplary damages were always a last resort, but they could be used in cases such as these where there was an unacceptable risk which was consciously disregarded such that the conduct had become reckless. B had acted in knowing disregard of an appreciated and unacceptable risk that it was probably abusing its dominant position.