Business Law: Cutter v Eagle Star Insurance Co. Ltd

This report provides a comprehensive analysis of business law principles, focusing on the cases of Cutter v Eagle Star Insurance Co. Ltd and Clarke v Kato. It begins by defining key terms such as 'appellant' and 'respondent,' crucial for understanding legal proceedings. The report then delves into the specifics of the Cutter case, examining the appellant's claims and the reversal of the initial judgment. A significant portion is dedicated to statutory interpretation, exploring how Lord Clyde utilized intrinsic and extrinsic aids to define 'road' within the context of the Road Traffic Act 1988. The report explains Lord Clyde's reasoning on car parks not being considered roads and the literal rule applied in the case. It also discusses the nature of obiter dicta in Lord Clyde's comments and whether the judge fulfilled his primary role. Finally, it considers the determination of offences related to driving licenses under the Road Traffic Act 1988, offering a complete overview of the legal concepts and case analysis.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
Q1. Define the terms 'appellant' and 'respondent'.......................................................................1
Q2. Appellant in the case of Cutter v Eagle Star Insurance Co. Ltd...........................................1
Q3. Meaning of reversing a previous judgement........................................................................2
Q4. Give two examples from Lord Clyde's judgement illustrating how his lordship used
intrinsic aids to statutory interpretation to define the term 'road' ...............................................2
Q5. Give one example from Lord Clyde's judgement in the case which illustrate his lordship
was applied through extrinsic aids to statutory interpretation to define the term road...............2
Q6. What, according to Lord Clyde, are two factors a court should consider whenever it is
asked to decide whether a location/a place/ a space qualifies as a 'road'?..................................3
Q7. Using your own words explain why, according to Lord Clyde, a car park could never be
viewed as a road except in the most exceptional of circumstances............................................3
Q8. When Lord Clyde concluded that a car park could never be viewed as a road except in
most exceptional of circumstances by producing evidence about which rule was applied in the
case law.......................................................................................................................................4
Q9. why could we describe Lord Clyde's comments about the purpose of Road Traffic Act,
1988 as comments that were made obiter?.................................................................................4
Q10. Arguably a judge's primary role is to identify, state, and apply the law, it is not a judge's
role to create the law. Did Lord Clyde fulfil that role in this case or did he exceed that role? ..4
Q11. Determination of whether an offence has been committed by the individual or not.........4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business law is body of legislation and rules that regulate transactions of an organization
held during ordinary course of business. An entity can not operate without complying with such
laws. It has two distinct parts viz. Laws governing company, partnership, agency and bankruptcy
and laws applicable on contracts (Chiapello, 2017). The report covers definition of appellant and
respondent, explanation of situations when a judgement is reversed, and usage of intrinsic and
extrinsic aids to statutory interpretation. Further, the report will consist of answers to various
questions asked based on a case report for Clarke v General Accident Fire and Life Assurance.
Q1. Define the terms 'appellant' and 'respondent'.
Appellant is a person or entity who applies for appeal in superior court regarding
judgement passed by an inferior court. The party may request to reverse or alter the decision. On
the other hand, the party against whom appeal has been filed is called appellee. Appellant may
also referred to as petitioner in some cases (Meaning of Appellant, 2019).
Respondent is the party against whom a case has been filed and has a duty to answer the
claims raised by petitioner or appellant in the court. Respondent can be either the plaintiff or the
defendant from the court, due to the reason that both of them have authority to file for an appeal.
A respondent will act according to judgement so passed in the appeal.
These two terms are generally used in civil court cases and in criminal proceedings the
word “defendant” replaces the word “respondent”.
Q2. Appellant in the case of Cutter v Eagle Star Insurance Co. Ltd.
In the case of Cutter v Eagle Star Insurance Co. Ltd., appellant was Stuart Richard
Cutter, who appealed against a judgement passed by Deputy Judge Kee who tuned down claims
made by him against the respondent. This case was about a accident of car that was parked on
the road. Further, the definition of road was explained according to specific section provided in
the Act applicable to the case (Villiers and Mähönen, 2015). The case was decided after
determining circumstances and legal meaning of the word road.
The judgement passed by Judge Kee was reversed with a new decision in which
respondent's claims were satisfied in full after examining all the evidence provided by Cutter.
This case is taken as a base on which many other cases have been determined.

Q3. Meaning of reversing a previous judgement
Appeals are made in order to seek reversing of the decisions or modification in such
judgement. Reversal is done when appellate court believe, after examining all the required
criteria, that judgement of a lower court was incorrect or outside the jurisdiction and is therefore,
reversed (Duska, Duska and Kury, 2018). In such situation, inferior courts are given order to
dismiss original decision passed by them, retry the case or alter its own judgement. Further, the
case is tried for new trial which decides whether new judgement should be passed or
modifications should be done. For example, if there is a failure or error at trial stage then new
decision is required and if error occurred during first appeal then changes are required to be
made in the results by increasing or decreasing the amount of sought. Hence, in the case of
Cutter v Eagle insurance co. and Clarke v Kato, original decisions were reversed by appellate
courts.
Q4. Give two examples from Lord Clyde's judgement illustrating how his lordship used intrinsic
aids to statutory interpretation to define the term 'road'
Intrinsic aids are the internal aids to make meaning more clearer and defined. These are
contained in the legislation or statute itself such as long title of Act, supplementary and
explanatory notes, other sections and definition of term mentioned in sections in the Act.
According to section 192 of Road Traffic Act, 1988, means any highway and any other road to
which the public has access. Further, according to section 145 of Road Traffic Act, 1972, a road
is intended to cover all types of roads including highways and any other roads. These are
measured by breadth of construction of road. Further, the judge held that a definable way over
which vehicles may pass which is plain in common sense qualifies as a road. The parking spaces
are called as road which are integral part of carriageway, thus, included in the definition of a
road (Ghio and Verona, 2015).
Q5. Give one example from Lord Clyde's judgement in the case which illustrate his lordship was
applied through extrinsic aids to statutory interpretation to define the term road
Extrinsic aids are used for interpretation through previous Acts of Parliament on the
existing topic or earlier matter if case law along with historical setting. Further, these also
consists international conventions, regulations or directives which have been made and imposed
by English legislation. In the general sense, road must be used by public for walk and drive,
further, it must be lawful in nature and must be permitted or allowed by the person or persons

using the road. In other words, a road is considered to which all public have access upon which
members of the public are to be found have not obtained access either by overcoming a physical
obstruction or in defiance of prohibition express or implied (Herdegen, 2016).
Q6. What, according to Lord Clyde, are two factors a court should consider whenever it is asked
to decide whether a location/a place/ a space qualifies as a 'road'?
Lord Clyde have passed a judgement in the case of Clarke v Kato in which definition of
road has been determined which is applicable for determining outcomes of a case law of car
accident in which insurance company is involved. The two factors that have been provided in
order to define a place/ location or a space to be known as road are:
 a road must serves as a way of access on which all public can walk or drive. Further, it
should be connected and lead to one place to another whereby travellers can walk easily
without any hurdles (McBarnet, 2019).
 It is constructed or manufactured on an area of land which is to be used again and again.
Further, it involved passage for traffic also. Along with this, it has be continuous, and any
break or disconnection between road would not be counted as a road.
Q7. Using your own words explain why, according to Lord Clyde, a car park could never be
viewed as a road except in the most exceptional of circumstances.
The whole case is based on the definition of road on which a car has been parked in order
to pass a decision. The insurance company should consider and evaluate the parking of car
before sanctioning the amount to be paid for claim (Joki, R. K. and et. al., 2016). There are
circumstances in which a car is never viewed to be standing or parked on the road such as where
a road ends or there is discontinuity between roads. However, even in such circumstances, a car
is parked will be considered where one can drive from one point to another or a place where a
car has been parked and is waiting. Along with this, a temporary stopping place incidental to
main function of the road would also be treated a part of the road, hence, to be included in the
definition.

Q8. When Lord Clyde concluded that a car park could never be viewed as a road except in most
exceptional of circumstances by producing evidence about which rule was applied in the
case law
The case is a benchmark case due to the reason of its right decision on the basis of facts
and issues. Lord Clyde used 'literal rule' for determining exceptional circumstances which was
applied in the case. According to literal rule, a judge is bound to follow and consider the what the
legislation actually depicts rather than considering what it might mean. Hence, the judge used
provisions of Road Traffic Act, 1988 to make his decision for the case law (Kranacher and Riley,
2019).
Q9. why could we describe Lord Clyde's comments about the purpose of Road Traffic Act, 1988
as comments that were made obiter?
Obiter is the expression of opinions which are not necessary for the decision of the case.
These starts with the word 'by the way' which are incidental in nature and do not directly point
out the question raised in the case law. These are not binding on the parties and made a part of
argument. The comments of Lord Clyde's were made obiter because the meaning of road which
was given by him was in general and already given in the sections of Road Traffic Act, 1988.
Q10. Arguably a judge's primary role is to identify, state, and apply the law, it is not a judge's
role to create the law. Did Lord Clyde fulfil that role in this case or did he exceed that role?
The role of a judge is to determine the case on the basis of applicable legislation and not
to develop a new law. In the case of Clarke v Kato, the judge has concluded the case by forming
Road Traffic Act, 1988 as base. The definition of the term road has been determined from
provisions which have been given in the act. This leaves no chances of doubt. Further, Lord
Clyde can not be said to have exceeded his jurisdiction or power. Further, in order to interpret
statues, intrinsic and extrinsic aids were considered which has legal base and can not be
questioned. Further, it is one of the landmark case on which many similar cases have been
concluded. Furthermore, this case will be used for making decision in the future (Krusell and
Smith Jr, 2015) .
Q11. Determination of whether an offence has been committed by the individual or not.
The case states that defendant was disqualified from holding a driving license. According
to Road Traffic Act, 1988, a person can not drive without a valid driving license. Hence, the

defendant will be considered to have committed an offence and will be punished according to the
penalties and punishments given in the Road Traffic Act, 1988 (Law, J. and et al., 2015).
CONCLUSION
From the above report, it has been concluded about meaning of appellant and respondent.
Along with this it also includes the appellant in the Case Of Cutter v Eagle Star Insurance Co
Ltd. Also, it shows that the outcomes of a decision that have been reversed by a judge. Further,
examples for intrinsic and extrinsic aids to statutory interpretation are given which help in
defining about the term 'road'. It also shows two factors that court must consider according to
Lord Clyde. At last it can be concluded that car park cannot be viewed as road except in some
exceptional situations.

REFERENCES
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Online:
Meaning of Appellant. 2019. Available through: <https://www.law.cornell.edu/wex/appellant>.