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swarb.co.uk - law indexThese cases are from the lawindexpro database. They are now being transferred to the swarb.co.uk website in a better form. As a case is published there, an entry here will link to it. The swarb.co.uk site includes many later cases. Â |
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Contract - From: 2001 To: 2001This page lists 157 cases, and was prepared on 20 May 2019. ÂDefinitely Maybe (Touring) Ltd v Marek Lieberberg Konzertagentur GmbH [2001] All ER 283; [2001] 1 WLR 1745 2001 ComC Morison J Jurisdiction, Contract The claimant supplied the services of the pop group Oasis to the defendant concert organisers for a concert in Germany. They sued for payment here, but the respondent said that proceedings should have been commenced in Germany. Held: The contract was made in Germany for services to be provided in Germany. The proper forum to hear the case was Germany. Rome Convention on the law applicable to contractual obligations 1980 4(5) 1 Citers  Skipton Building Society v Stott [2001] QB 261 2001 Damages, Contract In a well-developed property market where a sale is assured and the only possible issue is as to the market level, damages for loss of chance are relatively easily calculated. The fact that the sale price may be the same as the valuer’s estimate of the market value of the property will not protect the mortgagee if in fact the market value is higher. If the creditor breaches his duty under the principal loan agreement, a surety is released from his liability under the guarantee to the extent that the value of the securities has been impaired as a result of the breach. 1 Citers  And So To Bed Ltd v Dixon [2001] FSR 47 2001 Donaldson QC Contract The defendants, Mr and Mrs Dixon, were franchisees of an 'And So To Bed' shop. The franchise was terminated by the claimant, purportedly under a clause of the franchise agreement which entitled the claimant summarily to terminate the agreement for breach unless rectified within 14 days of notification or for failure to pay franchise licence fees, amongst other grounds. The claimant sued for loss of bargain damages consequent upon its termination, alleging that the agreement had been repudiated by the defendants. Held: That part of the claim succeeded. (a) one of the three breaches of contract cited in the termination letter was by nature repudiatory and (b) loss of bargain damages were therefore recoverable although termination was expressed to be under the express contractual term. At [35], Mr Donaldson QC stated, obiter, that on the Boston Deep Sea Fishing principle there was no reason why a termination letter should not be treated as an 'acceptance' of a repudiatory breach other than any such breach as was inherent in the factual basis on which the contractual power was stated to be exercised. 1 Citers  Edwin Shirley Productions Ltd v Workspace Management Ltd [2001] 2 EGLR 16 2001 Contract, Land So familiar is the use of the phrase "subject to contract" in the conveyancing context that its effect is, without proof, to be taken to be known to the parties. 1 Citers  Carillion Construction Ltd v Felix (UK) Ltd [2001] BLR 1 2001 Dyson J Contract 1 Cites 1 Citers   Great Northern Railways v Avon Insurance; 2001 - [2001] 2 Lloyd's Rep 649 (?)  Galaxy Energy v Bayoil [2001] 1 Lloyd's Rep 512 2001 CA Rix LJ Contract The court equated reasonable efforts with due diligence. 1 Citers  Chiemgauer Membran Und Zeltbau Gmbh v New Millenium Experience Company Ltd Times, 16 January 2001; Gazette, 01 February 2001 16 Jan 2001 ChD Damages, Contract Where one party terminated a contract without cause, damages were to be assessed on the basis of the contract provision allowing that. Certain aspects of causation should be side stepped, as with the law of repudiation. It was not open to the terminating party to seek to reduce the damages it should pay, by arguing that the claimant company, which had fallen into insolvency after the contract was terminated, would have gone into liquidation in any event. Damages were to be assessed on the basis that the contract would have been performed.  Pharmexco Anstalt v Glaxomed Ltd [2001] EWHC 516 (Comm) 16 Jan 2001 ComC Contract [ Bailii ]  Cerberus Software Ltd v John Anthony Rowley Times, 20 February 2001; [2001] ICR 376; [2001] EWCA Civ 1210; [2001] EWCA Civ 78; [2001] EWCA Civ 497 18 Jan 2001 CA Lord Justice Ward Lord Justice Sedley and Lord Justice Jonathan Parker Employment, Contract, Damages Where a contract of employment gave the employee a right to six months notice but provided that the employer might pay salary in lieu, and the employee was wrongfully dismissed instantly, but found work within weeks, he was entitled to his full six months pay in lieu of notice, but had to give credit for the sums he earned during that time in reduction of his damages. The choice given to the employer to pay salary in lieu of notice was inconsistent with an unconditional obligation to pay the full sum. courtcommentary.com Where (i) either party has right to terminate employment contract on six months' notice and (ii) it is agreed employer "may make payment in lieu of notice to the employee", then employer may elect whether or not to make payment in lieu of notice 1 Cites 1 Citers [ Bailii ] - [ Bailii ] - [ Bailii ]  LHS Holding Ltd v Laporte Plc [2001] EWCA Civ 278; [2001] 2 All ER (Comm) 563 21 Jan 2001 CA Company, Contract 1 Cites [ Bailii ]  The Owners And/Or Demise Charterer Of The Ship Or Vessel 'Starsin' v The Owners Of The Cargo Lately Laden Aboard The Ship Or Vessel 'Starsin' [2001] 1 Lloyd's Rep 437; [2001] EWCA Civ 56 23 Jan 2001 CA Transport, Contract 1 Cites 1 Citers [ Bailii ]  Zenziper Grains and Feed Stuffs v Bulk Trading Corporation Ltd Times, 23 January 2001; [2000] EWCA Civ 307 23 Jan 2001 CA Contract, Commercial, Transport Where a standard form free-on-truck (FOT) delivery contract provided for several possible destinations for delivery, the responsibility for specifying the place of delivery fell on the seller. There was no proper analogy with an FOB contract. The vessel would be chartered by the seller, and delivered to a port agreed between the seller and the ship-owner, and the characteristics of the ship itself could restrict and control the port of delivery. There would be likely to be other goods consigned also, and it would not make commercial sense for the buyer to specify the port of delivery. [ Bailii ]   Dodson v Peter H Dodson Insurance Services (A Firm); CA 24-Jan-2001 - Times, 24 January 2001; Gazette, 25 January 2001; [2001] 1 Lloyd's Rep 520  David Macdonald v Geoffrey Myerson, John Callaghan, Derek A H Law [2001] EWCA Civ 1220 26 Jan 2001 CA Lord Justice Aldous Lord Justice Mance And Mr Justice Charles Legal Professions, Registered Land, Contract The claimant had been involved in mortgage frauds, using the defendant firm of solicitors. He claimed an account following sales of the properties. At the time of the sales, the first defendant knew of the false identities used. The defendants claimed that the money had been paid out, and that the claim was for the proceeds of illegal acts, and he was not entitled to any equitable relief. Held: The houses had in fact been acquired by the claimant because of the use of powers of attorney, even though under a deceitful name. As to illegality, the documents were not executory, and as complete agreements were valid provided the claimant did not have to rely upon an illegal act. Defendants' appeal dismissed. 1 Cites [ Bailii ]  CPL Mechanical and Pipe Installation Specialists Ltd v Durr Industries Incorporated [2001] EWCA Civ 89 29 Jan 2001 CA Sedley, Jonathan Parker LJJ Contract, Litigation Practice Renewed application for leave to appeal against refusal to set aside judgment in default. [ Bailii ]  Delos, Owners of Cargo v Delos Shipping Ltd [2001] EWHC 486 (Comm); [2001] 1 Lloyds Rep 703 31 Jan 2001 ComC Langley J Contract, Arbitration Claims for breach of duty and bailment could be brought within the phrase "any disputes under" the contract. 1 Citers [ Bailii ]  Uddin v Ahmed and others [2001] EWCA Civ 204; [2001] 3 FCR 300 31 Jan 2001 CA Thorpe LJ, Buxton LJ Family, Contract [ Bailii ]  Albion Stone Quarries v Natural Stone Quarries [2001] EWHC Technology 20 5 Feb 2001 TCC His Honour Judge Richard Seymour Q.C. Contract N purchased Portland stone from A. A's terms and conditions incorporated a condition applying interest for late payment. Such stone is classified by the bed and quarry from which it was taken. Held: A letter stating the terms upon which stone might be supplied did not create a contract, and the sales were governed by the later correspondence, incorporating the company's terms. The sales were sales by description, but there was no evidence to suggest that stone for which payment was now claimed was substandard, subject to a small sum set off by agreement. [ Bailii ]  Cookson and Another v Ingham Clegg and Crowther (a Firm) [2001] EWCA Civ 417 9 Feb 2001 CA Legal Professions, Contract [ Bailii ]   Barrie v J Barrie (Plant Hire) Ltd; CA 14-Feb-2001 - [2001] EWCA Civ 614  Wincanton Ltd v P and O Trans European Ltd [2001] EWCA Civ 227 15 Feb 2001 CA Dyson LJ Agency, Contract Dyson LJ discussed the responsibilities of a bailee: "The critical question is always whether the parties agreed or intended (expressly or impliedly) that the obligations of the intermediate bailee should continue after he has parted with possession to a third party" 1 Citers [ Bailii ]  Hichens v General Guarantee Corporation Ltd Times, 13 March 2001; [2001] EWCA Civ 359 20 Feb 2001 CA Peter Gibson, Mummery, Rix LJJ Consumer, Contract The customer signed a hire-purchase contract and obtained confirmation of the leasing company's agreement by telephone. She took delivery of the car, and sold it on immediately, and before the contract was signed by the finance company six days later. It was held that the company had completed the contract in the telephone call, and the signing was by way of confirmation. This was so particularly where the contract did not provide that it could only be created on the signing. Hire Purchase Act 1964 24 [ Bailii ]  Northern Electric Plc v Econofreight Heavy Transport Ltd [2001] EWCA Civ 286 20 Feb 2001 CA Kennedy, Dyson LLJ Commercial, Contract Application for leave to appeal. Unfair Contract Terms Act 1977 [ Bailii ]  Al-Kishtaini v Shanshal [2001] EWCA Civ 264; [2001] 2 All ER (Comm) 601; [2001] Lloyd's Rep Bank 174 23 Feb 2001 CA Mummery LJ, Rix LJ, Holman J Contract [ Bailii ]  Watford Electronics Ltd v Sanderson CFL Ltd Gazette, 03 May 2001; [2001] EWCA Civ 317; [2001] 1 All ER (Comm) 696; [2001] BLR 143; [2002] FSR 19; (2001) 3 TCLR 14; [2001] Masons CLR 57 23 Feb 2001 CA Lord Justice Peter Gibson, Lord Justice Chadwick And Mr Justice Buckley Contract The plaintiff had contracted to purchase software from the respondent. The system failed to perform, and the defendant sought to rely upon its exclusion and limitation of liability clauses. Held: It is for the party claiming that a contract term satisfies the requirement of reasonableness to show that it does. To decide whether term was fair and reasonable having regard to the circumstances known to parties when the contract was made it is necessary to determine its scope and effect of that term as a matter of construction. The fact that the plaintiff had similar clauses in its own terms did not prevent them challenging the reasonableness of the defendant's terms, but it did show that it was commercially aware of the nature and purpose of such provisions. The entire agreement clause coloured the intent to be ascribed to the limitation of liability clause, particularly when the parties had had the benefit professional help in negotiations. Because the judge had failed to allow for the effect of the entire agreement clause, his decision to strike down the limit of liability clause was flawed, and a declaration was made accordingly. Chadwick LJ said that where experienced business men, representing substantial companies of equal bargaining power negotiate an agreement, they may be taken to have had regard to the matters known to them and to be the best judges of the commercial fairness and reasonableness of the agreement which they have reached including the fairness of each of the terms of the agreement. Chadwick LJ said: 'Where experienced businessmen representing substantial companies of equal bargaining power negotiate an agreement, they may be taken to have had regard to the matters known to them. They should, in my view be taken to be the best judge of the commercial fairness of the agreement which they have made; including the fairness of each of the terms in that agreement.' In this case, a term excluding indirect loss, applicable in the circumstances described, was a fair and reasonable one to include in the contract. Misrepresentation Act 1967 - Unfair Contract Terms Act 1977 3 1 Cites 1 Citers [ Bailii ]  Camden Wines Ltd v Medlink International Incorporated [2001] EWCA Civ 284 27 Feb 2001 CA Contract, Insolvency [ Bailii ]  Baird Textiles Ltd v Marks and Spencer plc [2001] CLC 999; [2002] 1 All ER (Comm) 737; [2001] EWCA Civ 274 28 Feb 2001 CA Judge LJ, Mance LJ Contract The more embryonic is an oral "agreement", the less likely it is that the parties intended to create legal relations at that stage. For there to be an agreement formed by conduct, there must be a course of dealing from which a contract is necessarily to be implied because the conduct in question is only referable to a contract as opposed to a desire to obtain one. On a strike-out claim it is the duty of the court to apply English law "as it now stands". Judge LJ said: "However settled the law may appear to be, one of its strengths is that the possibility of development or change remains. In my view, even for the purposes of CPR 24.2, we must apply the law as it is, not as it may possibly one day become." 1 Citers [ Bailii ]  Baird Textile Holdings Limited v Marks and Spencer Plc [2001] EWCA Civ 274 28 Feb 2001 CA Lord Justice Mance Contract, Estoppel The court considered the requirements to establish a proprietary estoppel: "It is on authority an established feature of both promissory and conventional estoppel that the parties should have had the objective intention to make, affect or confirm the legal relationship." The court also considered the requirements to be established for the creation of a contract: "For a contract to come into existence, there must be both (a) an agreement on essentials with sufficient certainty to be enforceable and (b) an intention to create legal relations. Both requirements are normally judged objectively. Absence of the former may involve or be explained by the latter. But this is not always so. A sufficiently certain agreement may be reached, but there may be either expressly (i.e. by express agreement) or impliedly (e.g. in some family situations) no intention to create legal relations. An intention to create legal relations is normally presumed in the case of an express or apparent agreement satisfying the first requirement: see Chitty on Contracts (28th edition) vol 1, para 2 - 146. It is otherwise, when the case is that an implied contract falls to be inferred from a party's conduct: Chitty, para 2 - 147. It is then for the party asserting such a contract to show the necessity for implying it. As Morison J said in his paragraph 12(1), if the parties would or might have acted as they did without any such contract, there is no necessity to imply any contract. It is merely putting the same point another way to say that no intention to make any such contract will then be inferred." 1 Citers [ Bailii ]  London and Regional Investments Ltd v TBI Plc and Another Unreported March 2001 1 Mar 2001 ChD Peter Smith J Contract 1 Cites 1 Citers   Bank of Credit and Commerce International SA v Ali, Khan and others (No 1); BCCI v Ali; HL 1-Mar-2001 - Times, 06 March 2001; Gazette, 12 April 2001; [2001] UKHL 8; [2001] 1 All ER 961; [2001] 2 WLR 735; [2002] 1 AC 251; [2001] ICR 337; [2001] IRLR 292; [2001] Emp LR 359  Shah v Shah and others [2001] EWCA Civ 493 7 Mar 2001 CA Contract, Estoppel, Land Renewed application for permission to appeal - whether deed validly signed. Law of Property (Miscellaneous Provisions) Act 1989 1 Citers [ Bailii ]  Staveley Industries Plc (T/A Ei Whs) v Odebrecht Oil and Gas Services Ltd Gazette, 08 March 2001 8 Mar 2001 TCC Contract, Construction, Arbitration Contracts were entered into to design, engineer and supply equipment for installation on oil and gas rigs. The contractor sought to assert that these were contracts governed by the Act, and the provisions for dispute resolution applied. The court held that the act suggested that the construction was to take place on 'the Land' and that there was no intention to include offshore installations within the Act. Interpretation Act 1978 - Housing Grants Construction and Regeneration Act 1996  Caledonia Subsea Limited v Micoperi SRL Times, 06 September 2002; [2001] ScotCS 56 9 Mar 2001 SCS The Lord President (Lord Cullen), Lord Cameron of Lochbroom and Lord Marnoch Scotland, Jurisdiction, Contract The parties disputed which court should have jurisdiction to hear their contract dispute. Held: There has been an ongoing difference in the interpretation of the Rome Convention as to the relative weight to be given to the place of business of the parties, and the place of performance of the contract. Should article 2 be displaced by article 5 where the place of performance differed from the normal place of business as allowed under article 5. The article 2 presumption should prevail unless the article 5 comparison which, unlike paragraph 2, might involve difficulty and uncertainty, demonstrated a clear balance in favour of another country. Rome Convention applicable to the Law of Contractual Obligations 1980 2 4 5 1 Cites [ Bailii ] - [ ScotC ]   Mamidoil-Jetoil Greek Petroleum Company SA v Okta Crude Oil Refinery Ad Cross; CA 22-Mar-2001 - [2001] EWCA Civ 406; [2001] 2 Lloyd's Rep 76; [2001] 2 All ER (Comm) 193  Gentry-Wells and Another (t/a Ringmer Cab Company) v Cooley and Another (t/a Becks Taxis) [2001] EWCA Civ 551 26 Mar 2001 CA Contract [ Bailii ]   Borealis Ab v Stargas Limited and Others and Bergesen Dy A/S Berge Sisar Dorealis Ab v Stargas Limited and Others; HL 27-Mar-2001 - Times, 27 March 2001; Gazette, 17 May 2001; [2001] UKHL 17; [2001] 2 All ER 193; [2002] 2 AC 205  Aktielselskabet Dampskibsselskabel Svendborg and Another v Mobil North Seal Ltd and others [2001] EWHC 518 (Comm) 28 Mar 2001 ComC David Steel J Contract, Transport Dispute on termination of charterparty agreement. [ Bailii ]  Valentines Properties Limited and (Valentines Restaurant and Bar (NZ) Limited v Huntco Corporation Limited and Steeple Transport Holdings (1993 Limited [2001] UKPC 15 29 Mar 2001 PC Lord Nicholls of Birkenhead, Lord Steyn, Lord Hoffmann, Lord Millett, Dame Sian Elias Commonwealth, Contract PC (New Zealand) A conditional agreement had been reached for the development of land. There was a disagreement as to the fulfilment of the conditions. The local authority approved arrangements of the development. The developer refused to accept that the permission was satisfactory, and claimed the agreement lapsed. The claimant then obtained amended conditions from the authority. Held: The strict time-limit under the contract was intended to allow the parties to achieve finality. The agreement lapsed on the non-fulfilment of the first conditions. The refusal of the conditions was not unreasonale, and time was of the essence. 1 Cites [ Bailii ] - [ PC ]  Scottish and Newcastle Plc v G D Construction (St Albans) Ltd [2001] EWHC Technology 444 29 Mar 2001 TCC udge Richard Seymour Q.C. Construction, Contract The defendant contracted to refurbish premises belonging to the claimant. A fire caused by a sub-contractor caused damage, and the cost was sought from the defendant. He claimed that the standard form contract excluded its liability, including damages for interruption of business. The contract required the employer to take out joint names insurance in respect of such risks, but did that obligation include an obligation to insure against business interruption. Where a party sought to be excused from his own negligence under the contract, he should show some consideration for that excuse. The reference to damage did not include damages for interruption to business, and the defendant was not excused liability. 1 Cites [ Bailii ]  Bim Kemi v Blackburn Chemicals Ltd [2001] 2 Ll Rep 93; [2001] EWCA Civ 457; [2001] CLC 1166; [2001] 2 Lloyd's Rep 93 3 Apr 2001 CA Potter LJ, Sedley LJ, Jonathan Parker LJ Equity, Contract The question was the degree of connection which must be shown between (1) a claim for unliquidated damages for breach of a contract and (2) a cross-claim for unliquidated damages for breach of a different contract between the same parties, in order to permit the latter claim to be the subject of an equitable set-off against the former claim. Held. The degree of closeness required for an equitable or transaction set-off was that of an "inseparable connection", but it was not necessary that the cross-claim should arise out of the same contract. All that was required was that it should flow from the dealings and transactions which gave rise to the subject of the claim. Potter LJ said: "Like the Judge, I consider that Mr. Turner's submissions for Blackburn are correct. In so holding, again like the Judge, I regard it as appropriate to apply the test propounded by Lord Brandon in the Bank of Boston case unconstrained by the former concept, difficult to define and apply, of 'impeachment of title', which has since been replaced, or at least redefined, in terms of a cross-claim which 'flows out of and is inseparably connected with the dealings and transactions giving rise to the subject in the claim'. While the circumstances of every case call for individual consideration, it seems to be that the Dole Fruit case provides a useful parallel with the situation in this case. There, the Court was satisfied there was a sufficiently close connection in the case of a claim for the price of goods sold and delivered pursuant to a contract made under the 'umbrella' of a distributorship agreement which had been repudiated." 1 Citers [ Bailii ]   Amoco (UK) Exploration Company (a Company Incorporated In Delaware, Usa) and others v Teesside Gas Transportation Ltd and v Imperial Chemical Industries Plc and others (Consolidated Appeals); HL 4-Apr-2001 - [2001] UKHL 18; [2001] 1 All ER (Comm) 865  Aragona v Alitalia Linee Aeree Italiane Spa [2001] EWHC 463 (QB) 9 Apr 2001 QBD Employment, Contract The claimants were employees of the defendant Italian company working in England. Their contracts were subject to English law. They sought damages for breach of contract or, alternatively, a restitutionary remedy arising out of the failure and refusal of Alitalia to allocate shares to those of its employees who were employed under a contract which was not governed by Italian law, notwithstanding that such an allocation was made to those employees of equivalent status whose contracts were subject to Italian law. [ Bailii ]  Masquerade Music Ltd and Others v Bruce Springsteen [2001] EWCA Civ 5122; [2001] EWCA Civ 513 10 Apr 2001 CA Lord Justice Waller Lord Justice Laws And Lord Justice Jonathan Parker Intellectual Property, Contract, Evidence The respondent was a composer who sought to restrict the import of CDs containing his music into the UK. The appellants responded putting him to strict proof of his title. The title included assignments from a partnership to limited companies, but the original documents were no longer available. He sought to have admitted in evidence secondary evidence. The appellants submitted that before that secondary evidence could be admitted, the plaintiff should have shown that he had taken executed a diligent search for the document. Held: At its highest, the best evidence rule was not an absolute rule. This is so particularly where the document was not in the possession of the party. It is now for the court to look at all the circumstances, and to admit secondary evidence accordingly. Copyright Act 1956 36(3) 1 Cites [ Bailii ]  Grossman v Hooper [2001] EWCA Civ 615; [2001] 2 EGLR 82; [2001] 3 FCR 662; [2001] 27 EG 135 11 Apr 2001 CA Chadwick LJ, Sir Christopher Staughton doubted the observation in Contract, Land The parties had lived together in the house, each contributing but held in the name of one only. The parties disputed the effect under the 1989 Act of a letter signed by each of them setting out their agreement as to the basis on which it was held. He argued that it did not include a relevant term, and was therefore not effective. Held: The appeal failed. The court should be wary of artificially dividing up what is in truth a composite transaction. Sir Christopher Staughton doubted the observation in Tootal saying: "I am by no means sure of that. If the parties are allowed by a simple device to avoid the effects of section 2 of the Law of Property (Miscellaneous Provisions) Act 1989, what was the point of Parliament enacting it?" Law of Property (Miscellaneous Provisions) Act 1989 2(1) 1 Cites 1 Citers [ Bailii ]  Discain Project Services Ltd v Opecrime Development Ltd [2001] EWHC Technology 435 11 Apr 2001 TCC His Honour Judge Richard Seymour QC Construction, Contract 1 Cites 1 Citers [ Bailii ]  Sir Elton John and others v Price Waterhouse and others [2001] EWHC Ch 438 11 Apr 2001 ChD Contract [ Bailii ]  Network Security Management Ltd v Barnes and Another [2001] EWCA Civ 628 24 Apr 2001 CA Longmore LJ Contract [ Bailii ]  Baldwin v Riley [2001] EWCA Civ 686 26 Apr 2001 CA Contract [ Bailii ]  SCI (Sales Curve Interactive) Limited v Titus Sarl [2001] EWCA Civ 591 26 Apr 2001 CA Contract [ Bailii ]  Pendleton and Another v Westwater [2001] EWCA Civ 655 30 Apr 2001 CA Rix LJ Contract 1 Citers [ Bailii ]  Veba Oil Supply and Trading Gmbh v Petrotrade Inc [2001] EWHC 542 (Comm) 1 May 2001 ComC Morison J Contract Defendant's application for summary dismissal of the claim brought against them. [ Bailii ]  Keith Davy (Contractors) Ltd v Ibatex Ltd [2001] EWCA Civ 740 2 May 2001 CA Schiemann,Mummery, Tuckey LJJ Contract, Litigation Practice [ Bailii ]  Mobil North Sea Ltd and Another v P J Pipe and Valve Company (T/A P J Valves Or P J Valve Ltd) [2001] EWCA Civ 741; [2001] 2 All ER (Comm) 289 3 May 2001 CA Aldous LJ, May LJ, Rix LJ Contract, Litigation Practice [ Bailii ]  Kalsep Ltd v X-Flow Bv Times, 03 May 2001 3 May 2001 ChD Contract The doctrines of mutual or unilateral mistake could not be applied before the court had first considered any allocation of that risk under the contract. A party seeking to set aside a contract on the basis of an unconscionable bargain had to show more than harshness by the other party, he had to establish some impropriety, both as to the terms of the agreement and the way in which it had been reached.  Hook Norton Brewery v Collinson [2001] EWCA Civ 941 4 May 2001 CA Arden LJ Contract Application by the defendant for permission to appeal from an order dismissing an appeal from the refusal of the District Judge to set aside a judgment for beer sold and delivered. [ Bailii ]  UVC Ltd (T/A Power Train Projects) v Doug Kiddie Engineering Ltd [2001] EWCA Civ 922 8 May 2001 CA Contract renewed application by the defendant for permission to appeal - whether compromise of action effective. [ Bailii ]  Young v Evans-Jones and Another [2001] EWCA Civ 732; [2002] 1 P and CR 14 9 May 2001 CA Contract, Health Professions covenants in restraint of trade. [ Bailii ]  Thurstan Hoskin v Jewill Hill and Bennett and others [2001] EWCA Civ 719 9 May 2001 CA Employment, Contract 1 Citers [ Bailii ]  International Finance Corporation v Utexafrica SPRL [2001] EWHC 508 (Comm); [2001] CLC 1361; [2001] All ER (D) 101 (May) 9 May 2001 ComC Moore-Bick J Civil Procedure Rules, Contract The defendant applied to have set aside judgement entered against him in default of acknowledgment of service. Held: The authorities make it plain that, in order to satisfy the test for resisting a summary claim for for wrongful repudiation and/or breach of contract, a defendant has to demonstrate a defence which is not 'false, fanciful or imaginary', and is better than merely arguable. Civil Procedure Rules 13.3.(1) 1 Citers [ Bailii ]  National Westminster Bank v Utrecht-America Finance Company [2001] EWCA Civ 658; [2001] 3 All ER 733 10 May 2001 CA Lord Justice Aldous, Lord Justice Clarke, And Lord Justice Laws Banking, Jurisdiction, Contract An agreement between the parties for assignment or novation of a credit agreement, contained a 'take out' agreement ('TOA'). The defendant began proceedings in California to rescind the agreement, and the claimants obtained summary judgement under the TOA and an injunction to prevent the defendants proceeding in California. The defendants appealed. There were allegations of the withholding of information which would be treated differently in the two courts. Held: If the agent had no obligation to disclose anything, his failure to do so could not be characterised as fraudulent or negligent, whatever his motives may have been. The agreement gave explicit preference to English law. The clause specifying what was to be disclosed was neither unfair nor unreasonable. The injunction was correctly granted. Unfair Contract Terms Act 1977 2(2) - Misrepresentation Act 1967 3 1 Cites 1 Citers [ Bailii ]  Joiner and Another v George and others [2001] EWCA Civ 749 11 May 2001 CA Company, Contract [ Bailii ]  Larwood Holdings Ltd v Hammond Services Ltd [2001] EWCA Civ 828 17 May 2001 CA Contract Second level application for permission to appeal. [ Bailii ]  Gloyne v Richardson; Barber Young Burton and Rind [2001] EWCA Civ 716 18 May 2001 CA Contract [ Bailii ]  Samy Sunnassee v David Ardill [2001] UKPC 25; Appeal No 50 of 1999 21 May 2001 PC Land, Contract, Commonwealth (Mauritius) The appeal concerned an option to purchase land. The parties differed as to the identity of the land covered, and as to the service of the notice exercising the option. Certain factual elements had not been resolved in the lower courts, and while reasserting their reluctance to investigate matters of fact, the court agreed to look at some factual issues. After many years the claimant was unable to produce evidence of the service of a particular notice, only a copy of the letter sent. An apparent mistake by the parties in referring to a plan which did not accord with the expectations of either of them would not vitiate the contractual option. Each party thought the plan referred to was in a certain form. [ Bailii ] - [ PC ] - [ PC ]  HIH Casualty and General Insurance Limited v New Hampshire Insurance Company Independent Insurance Company Limited Axa Reinsurance S A [2001] EWCA Civ 735; [2001] 2 Lloyds Rep 161; [2001] LLR IR 224 21 May 2001 CA Lord Justice Aldous Lord Justice Rix and Mr Justice Lloyd Insurance, Contract A claim was made under a re-insurance policy which supported film finances. The re-insurers resisted the claim on the grounds of misrepresentation. Rix LJ: "In principle it would seem to me that it is always admissible to look at prior contracts as part of the matrix or surrounding circumstances of a later contract. I do not see how the parol evidence rule can exclude prior contracts, as distinct from mere negotiations. The difficulty of course is that, where the later contract is intended to supersede the prior contract, it may in the generality of cases simply be useless to try to construe the later contract by reference to the earlier one. . Where, however, it is not even common ground that the later contract is intended to supersede the earlier contract, I do not see how it can ever be permissible to exclude reference to the earlier contract." 1 Cites 1 Citers [ Bailii ]  Bircham and Co, Nominees; Limited and Another v Worrell Holdings Ltd [2001] EWCA Civ 775; (2001) 82 PandCR 427 22 May 2001 CA Lord Justice Schiemann, Lord Justice Chadwick And Sir Christopher Staughton Landlord and Tenant, Contract Whether an agreement is enforceable for the sale of the remainder of the term of a lease following the exercise (or purported exercise) of rights of pre-emption Law of Property (Miscellaneous Provisions) Act 1989 2 1 Cites 1 Citers [ Bailii ]  Latkter v General Guarantee Finance Ltd and Another [2001] EWCA Civ 875 5 Jun 2001 CA Contract [ Bailii ]  BMBF (No 12) Limited v Harland and Wolff Shipbuilding and Heavy Industries Limited [2001] EWCA Civ 862 8 Jun 2001 CA Contract, Arbitration [ Bailii ]  HSBC Bank Plc v Liberty Mutual Insurance Company (Uk) Ltd Times, 11 June 2001 11 Jun 2001 ChD Insurance, Banking, Contract Where the draftsman of a contract appeared to have misused a word the court could depart from the dictionary meanings even if there was no ambiguity. This must first become apparent from the surrounding circumstances before the court could accept that it was to be driven to construe the contract in this way.  Freeman v Walker [2001] EWCA Civ 923 15 Jun 2001 CA Contract, Consumer [ Bailii ]  Pegler Ltd v Wang (Uk) Ltd and Another [2001] EWCA Civ 1019 18 Jun 2001 CA Kay LJ, Keene LJ Contract, Damages, Costs Costs had been awarded against the third party, the parent company of the defendant. Leave to appeal was sought. Held: It was arguable that the judge had not taken into account properly the interest of the company in protecting the interests of creditors and not just itself. Leave was given. Supreme Court Act 1981 51 1 Cites [ Bailii ]  Heffernan and Another v Grangewood Securities Ltd [2001] EWCA Civ 1082 19 Jun 2001 CA Contract Redemption action. 1 Cites [ Bailii ]   Lidl UK Gmbh v Hertford Foods Ltd and Another; CA 20-Jun-2001 - [2001] EWCA Civ 938  Fitt v Woburn Land Rover Ltd and others [2001] EWCA Civ 1033 20 Jun 2001 CA Keene LJ Contract, Damages [ Bailii ]  London and Regional Investments Ltd v TBI Plc and Another [2001] EWCA Civ 1026 22 Jun 2001 CA Land, Contract 1 Cites 1 Citers [ Bailii ]  Brian Watson v First Choice Holidays and Flights Limited and Aparta Hotels Caledonia S A [2001] EWCA Civ 972 25 Jun 2001 CA Judge, Latham LJJ Contract, European, Personal Injury, Consumer Two tourists were injured whilst on holiday in Spain. One recovered damages in Spain; the other sued the tour operators here, and the Spanish hotel operator resisted being joined, saying that his business being in Spain, he should not be sued here. The Regulations clearly enabled the tour operator to be sued here, and the operator in turn could seek his indemnity from the hotel operator here under the Convention. The parties could not be protected from the possibility of facing different consequences from different courts when there were several linked cases. The cases were referred to the European Court of Justice for their decision. [ Bailii ]  Freund v Charles Scott Developments (South Devon) Ltd [2001] EWCA Civ 1020 28 Jun 2001 CA Contract Renewed application for permission to appeal. [ Bailii ]  Pride Valley Foods Limited v Hall and Partners and Hall and Partners (Contract Management) Limited (2001) 76 CLR 1; [2001] EWCA Civ 1001; [2001] NPC 103 28 Jun 2001 CA Brooke, Sedley, Dyson LJJ Negligence, Contract The defendants had advised on the construction of a plant. It later burned down, and the fire would have been less damaging but for materials used. The plaintiff sought damages for breach of contract and negligence. The judge at first instance held that the plaintiff would not have accepted advice to spend more than was required by regulations. On appeal, the court held that he had not allowed for certain evidence which suggested that he may have listened, and that advice had not been given. The finding, and consequent assessment of contributory negligence was remitted for reconsideration. Contribution starts from a point at which two or more defendants have been held to have contributed by their own fault to the claimant's injury. Their contributions are asssessed by gauging the relative causative potency of their respective faults and their comparative blameworthiness. Contributory negligence starts from where the defendant alone has been held to have caused the claimant's injury by his fault. Three questions arise. Whether the claimant too was materially at fault. Second, if so, was his fault lay within the very risk which it was the defendant's duty to guard him against. It is only if his fault was not within the causative reach of the defendant's own neglect that the question of relative culpability arises. 1 Citers [ Bailii ]   Jones v Morgan; CA 28-Jun-2001 - Times, 24 July 2001; [2001] EWCA Civ 995; (2001) 82 P and CR DG20; [2001] NPC 104; [2001] Lloyds Rep Bank 323; [2002] 1 EGLR 125  Norman Hudson v Shogun Finance Ltd Times, 04 July 2001; [2001] EWCA Civ 1000 28 Jun 2001 CA Lord Justice Brooke, Lord Justice Sedley, Lord Justice Dyson Consumer, Contract, Torts - Other A rogue had purchased a car, using a false name to obtain finance. He had then sold it to the defendant. The finance company claimed the car back. Held: The dealer had not taken all the steps he might have done to check the identity of the buyer, but Cundy v Lindsay was binding, and the innocent purchaser had not obtained any title. The Act did not operate to protect him unless the rogue had been a debtor under the Act. The person whose signature had been forged could not be sued under the finance agreement. The rogue was not the hirer named in the agreement. The dealer was not the agent of the finance company, since he had no authority to make an agreement on their behalf. It was therefore impossible to apply the 'face to face' principle to suggest the contract was made with the rogue who presented himself at the showroom. Hire Purchase Act 1964 27 - Consumer Credit Act 1974 Sch 4 Para 22 1 Cites 1 Citers  Julian v Rollit Farrel and Bladon [2001] EWCA Civ 1187 29 Jun 2001 CA Contract, Legal Professions, Professional Negligence [ Bailii ]  Mehdi v Bates (Aka Muhummad Rafiq) [2001] EWCA Civ 1149 3 Jul 2001 CA Judge LJ Contract Application for permission to appeal [ Bailii ]   Gan Insurance Co Ltd v Tai Ping Insurance Co Ltd; CA 3-Jul-2001 - [2001] EWCA Civ 1047; [2001] 1 Lloyds Rep 667; [2001] All ER (D) 33; [2001] 2 All ER (Comm) 299   Philip Morris Products Inc and Another v Rothmans International Enterprises Limited and Another; CA 4-Jul-2001 - Times, 17 August 2001; Gazette, 06 September 2001; [2001] EWCA Civ 1043  Dales Holiday Cottages Ltd v Ludlam [2001] EWCA Civ 1112 4 Jul 2001 CA Tuckey LJ Contract Application for leave to appeal against summary judgment for agent's letting fees. [ Bailii ]  McLister v London Borough of Southwark [2001] EWHC Ch 398 5 Jul 2001 ChD His Honour Judge Richard Seymour Q.C. Contract Dispute as to existence of contract to grant a lease. [ Bailii ]  West and Another v Mitford [2001] EWCA Civ 1255 9 Jul 2001 CA Contract Action for recovery of nursing home fees. [ Bailii ]  Money Markets International Stockbrokers Ltd v London Stock Exchange Ltd and Another [2001] EWHC 1052 (Ch); [2002] 1 WLR 1150 10 Jul 2001 ChD Neuberger J Insolvency, Contract 1 Cites 1 Citers [ Bailii ]  Omar v El-Wakil Gazette, 26 July 2001; Times, 02 November 2001; [2001] EWCA Civ 1090; [2002] 2 P and CR 36; [2001] NPC 114 11 Jul 2001 CA Phillips MR, Pill LJ, Arden LJ Land, Contract The parties entered into two linked contracts providing for a property and a business to be transferred, a lease granted and otherwise. The transfer of the property was in the sum expressed in the sum and at the time the other agreement provided for the deposit. After that transfer the claimant issued a notice to complete, and then sought payment of the deposit. The respondent who had already transferred the property claimed that this stood for the deposit, and requested its return. Held: His appeal was refused. Although the court should have treated the two contracts as one, and the house as the deposit on the second contract, a deposit should not normally be returnable. Neither party was in a position to complete the second contract and the notice to complete was inappropriate. Arden LJ discussed the interpretation of section 49(2): "The starting point must be that although section 49(2) is expressed in open-textured terms leaving it to the courts to determine the organising principles, the court must bear in mind that the payment in question was a 'deposit', that is an earnest for performance and that accordingly there should not be relief simply because the Corringham contract never took place . . The context here is of a conveyancing transaction. It is common knowledge that if a purchaser pays a deposit he is likely to forfeit it if he does not fulfil the contract. Moreover deposits are very usual features of conveyancing transactions and conveyancing transactions are common. It is important that there should be certainty attaching to the consequences of paying a deposit. As the judge did not exercise his discretion under section 49(2), or alternatively declined to exercise it on the basis no deposit had been paid, it is open to this court to do so. For the reasons given, I would start from the position that the deposit should not normally be ordered to be repaid. Are there any mitigating circumstances in the present case? . . Furthermore in my judgment, in a situation where a purchaser could not himself perform, the circumstances which make it appropriate for the court to exercise its discretion under section 49(2) in his favour must be exceptional. Inability to complete is exactly the risk the deposit was intended to guard against. Accordingly I would not exercise the discretion conferred by section 49(2) in Mr Omar's favour and would dismiss the appeal on that point." Law of Property Act 1925 49(2) 1 Citers [ Bailii ]  Biggin Hill Airport Ltd v Bromley London Borough Council Times, 13 August 2001; Gazette, 31 August 2001; [2001] EWCA Civ 1089 11 Jul 2001 CA Pill LJ, Arden J, Dyson LJ Landlord and Tenant, Transport, Contract A lease of an airport included a restriction to limit use to 'business aviation'. The landlord argued that this had a special meaning in the industry so as to exclude use by chartered and scheduled services. The judge had been correct to say that no such special meaning existed, but had been wrong to interpret that phrase without looking to the factual background. Applying those facts, the use was to be interpreted so as to allow use of aircraft, including chartered aircraft, for business purposes, as within the context of the business of the aircraft owner or charterer for business purposes, but so as to exclude offering transport to members of the public for reward save in an incidental way. The phrase 'other uses related to an airport or related to aviation' did not permit other flying activities. [ Bailii ]   BBF Consultancy Group (A Firm) v Barratt Homes Ltd; CA 12-Jul-2001 - [2001] EWCA Civ 1155  Bay Hotel and Resort Limited and Zurich Indemnity Company of Canada v Cavalier Construction Co Ltd and Cavalier Construction Co Ltd [2001] UKPC 34; Appeal No 32 0f 2000 16 Jul 2001 PC Lord Nicholls of Birkenhead, Lord Cooke of Thorndon, Lord Clyde, Lord Hutton, Lord Millett Arbitration, Construction, Contract, Jurisdiction, Commonwealth (Turks and Caicos Islands) A dispute after a construction contract was under standard terms according to the laws of Turks and Caicos islands. Two issues were appealed. What was a 'reasoned award' within the scheme, and whether the arbitrator could himself add a party to the arbitration. The substantive rather than procedural law of the country where the arbitration was carried out need not be that of the contract. The dispute properly fell to be arbitrated under the standard AAA terms, which provided that both the procedural and jurisdictional law to be applied would be that of the Islands. Though the award was insufficiently detailed to constitute a reasoned decision in English law, the evidence was that it would satisfy the requirements of the law under which it was issued. The clause regarding joinder was one restricting a power which must be derived elsewhere. There was no such power in this case, and the arbitrator was unable to join the other company without the consent of the other parties to the dispute. [ Bailii ] - [ PC ] - [ PC ] - [ PC ]  Smith v Artsanna Spa [2001] EWCA Civ 1232 18 Jul 2001 CA Jonathan Parker, Longmore LJJ Contract The parties disputed whether a contract had been made between them. [ Bailii ]   Aeolian Shipping SA v ISS Machinery Services Ltd; CA 20-Jul-2001 - [2001] EWCA Civ 1162  Savory and others v Morrison (T/A Park Home Estates) [2001] EWCA Civ 1225 23 Jul 2001 CA Contract, Land Members of a residential association on a mobile homes park complained that the owner had failed to comply with an obligation to ensure that other residents did not breach the rules of the park, and in particular that he had allowed six mobile home owners to keep dogs. [ Bailii ]  Lexus Telecom Ltd and Others v Federation of Communications Ltd and Others [2001] EWHC 544 (QB) 23 Jul 2001 QBD Gage J Contract [ Bailii ]  Globe Master Management Ltd v Boulus Gad Ltd [2001] EWCA Civ 1394 24 Jul 2001 CA Hale, Longmore LJJ Contract Leave to appeal - granted [ Bailii ]  Europhone International Ltd v Frontel Communications Ltd Times, 11 September 2001; Gazette, 20 September 2001 25 Jul 2001 ChD Mr Justice Ferris Contract, VAT Although the VAT regime required all commercial enterprises to issue VAT invoices in a timely way, that is not sufficient, of itself, to create an implied term into contracts between businesses, that invoices should be issued in a way which would comply with that obligation. A declaration could not be granted, if all other associated claims had failed. VAT Regulations 1995 (1995 No 2518) 13(1) 1 Cites  Carter v Lotus Leisure Group Limited [2001] EWCA Civ 1205 25 Jul 2001 CA Lord Justice Mummery Lady Justice Arden And Mr Justice Sumner Contract The claimant operated by taking commission from arrangements between holiday chalet owners and tour operators, such as the respondent, for letting the chalets to holidaymakers. Under an agreement, the tour operators were prevented from renting from the chalet owners direct. The claimants asserted that the tour operator had, within the restriction period, agreed with the chalet owners for lets outside the restriction period. Did they rent the chalets when entering into the agreements with the owners, or when the lets themselves began. Held: On its ordinary meaning the words 'to rent' meant the actual taking of possession. However the word had to be read in the context in which it was used, and was capable of a wider meaning, which would include the agreement to rent. That was the meaning here. The agreement treated the properties as 'currently rented' when subject to an agreement to let at some future time. This was not a situation where there was ambiguity, and therefore the contra preferentem rule could not be used. 1 Cites [ Bailii ]  Paige v Webb [2001] EWCA Civ 1220 26 Jul 2001 CA Lord Justice Laws, Lord Justice Mummery, Sir Anthony Evans Land, Contract, Litigation Practice, Registered Land The claimant sought rescission of a consent order for specific performance made in an earlier action. The purchasers had not complied simply with the order, but had sought to bring back certain parts of the original contract. Held: Once an order for specific performance has been made, the matter of how the contract is to be performed lies with the court, not the parties. The consent order itself referred back to the contract, and the remaining conditions still applied. The consent order should not be rescinded on these grounds. The seller had refused to complete without delivering a deed of rectification, nevertheless that would not in the circumstances pose any practical problem. Land Registration Act 1925 110(2) 1 Cites  Nazir v Akindayini [2001] EWCA Civ 1422 31 Jul 2001 CA Judge J Personal Injury, Contract [ Bailii ]  Sarkany v Dezfouli [2001] EWCA Civ 1311 31 Jul 2001 CA Jonathan Parker LJ Contract [ Bailii ]  Biggs and Another v Sotnicks (A Firm) and others [2001] EWCA Civ 1356 31 Jul 2001 CA Limitation, Professional Negligence, Contract Limitation Act 1980 14A [ Bailii ]  British School of Motoring v Hooper [2001] EWCA Civ 1421 31 Jul 2001 CA Contract [ Bailii ]  Galaxy Energy International Ltd v Eurobunker Spa [2001] EWHC 502 (Comm); [2001] CLC 1725; [2001] 2 All ER (Comm) 912; [2001] 2 Lloyd's Rep 725 31 Jul 2001 ComC Thomas J Contract [ Bailii ]  Glencore International AG v Metro Trading International Inc and others [2001] EWHC 490 (Comm); [2001] 1 Lloyd's Rep. 283 1 Aug 2001 ComC Moore-Bick J Contract, International Under English conflicts of laws rules the transfer of title to movable property is governed by the law of the place where the property is situated. Moore-Bick J commented obiter on a dictum of Millett J in Macmillan: "However, if the lex situs rule in relation to movables rests, at least in part, on a recognition of the practical control exercised by the state in which they are situated, there is something to be said for applying whatever rules of law the courts of that state would actually apply in determining such questions [and a passing reference was made to Dicey & Morris, The Conflict of Laws (13th edn)]". 1 Cites 1 Citers [ Bailii ]   O'Brien v MGN Ltd; CA 1-Aug-2001 - Times, 08 August 2001; [2001] EWCA Civ 1279; [2002] CLC 33  Clark v Ardington Electrical Services; Dennard v Plant; Sen v Steelform Engineering Company Ltd; Lagden v O'Connor [2002] Lloyds Rep IR 138 3 Aug 2001 CC Judge Charles Harris QC Consumer, Contract, Legal Professions The several claimants had hired motor vehicles following accidents, being re-assured that the costs would be recovered from defendant insurers. The agreements would not comply with the requirements of the Consumer Credit Act. They each envisaged short periods of hire, but with repayment rather later. The insurers argued that the term was that defined by the expected repayment period, and that they therefore were consumer credit agreements, and, since they lacked the appropriate form, they were void, and unenforceable. As unenforceable agreements, they were not obliged to pay out the drivers who had entered into the agreements. The claimants asserted that the terms were the terms of the hire itself, and that accordingly they were not subject to the Consumer Credit provisions, and were therefore valid, and the insurers could be called on to pay them. Held: The agreements were for the actual hire period, rather than the credit term, and therefore they were valid. 1 Citers  Hallmark Travel Consultants Ltd v Celtic Manor Hotel Ltd [2001] EWCA Civ 1414 10 Aug 2001 CA Contract [ Bailii ]   London Regional Transport, London Underground Limited v Mayor of London Transport for London; CA 24-Aug-2001 - [2003] EMLR 4; [2001] EWCA Civ 1491  Wisdom (T/A S and J Property Services) v Silver [2001] EWCA Civ 1408 29 Aug 2001 CA Contract [ Bailii ]  Tullis Russell and Co Ltd v Eadie Industries Ltd [2001] ScotHC 97; [2001] ScotCS 215 31 Aug 2001 SCS Lord MacFadyen Scotland, Consumer, Contract The pursuers and defenders disagreed over which of their respective terms and conditions controlled the sale of equipment, under which the pursuers sought damages for faults in the goods. Both quotation, and order purported to include the respective company's terms and conditions. The parties differed as to which documents constituted the offer and which the acceptance. In this case, the defenders quotations were invitations to treat rather than offers capable of acceptance, and accordingly the pursuers terms applied. Contracts (Applicable Law) Act 1990 1 Cites [ Bailii ] - [ Bailii ] - [ ScotC ]  LUK Leamington Ltd. v Whitnash Plc and Another [2001] EWHC Commercial 480 20 Sep 2001 ComC David Steel J Contract Claim for rectification of a joint venture agreement [ Bailii ]  Courage Ltd and Crehan v Crehan and Courage Ltd and Others Times, 04 October 2001; C-453/99; [2002] QB 507; [2001] EUECJ C-453/99 20 Sep 2001 ECJ GC Rodriguez Iglesias, President and Judges C. Gulmann, M. Wathelet, V. Skouris, D. A. O. Edward, P. Jann, L. Sevon, F. Macken, N. Colneric, J. N. Cunha Rodrigues and C. W. A. Timmermans Advocate General J. Mischo Contract, Commercial The company had leased a public house to the respondent. The lease was subject to a tie, under which the respondent had to purchase supplies from the company. The company came to sue for the price of beer supplied. The respondent asserted that the tie agreement was unlawful, because the company sold beer to non-tied houses at lower prices, and so was anti-competitive. He also claimed damages. Held: The agreement was automatically void under the article which embodies a fundamental principle of EU law. Nevertheless it was for each member state to put in place laws which dealt with the consequences of such illegality on the parties. The English law preventing a party to a an illegal agreement relying upon it where it was established that that party bore significant responsibility for the distortion of competition. "It follows that this court must rule in the abstract on a situation where a breach of article 81 EC has caused loss to one of the parties to the agreement. The question whether this abstract situation corresponds to the facts in the case is a question to be decided later by the referring court and does not concern this court." "The full effectiveness of article 85 of the Treaty and, in particular, the practical effect of the prohibition laid down in article 85(1) would be put at risk if it were not open to any individual to claim damages for loss caused to him by a contract or by conduct liable to restrict or distort competition." and "However, in the absence of Community rules governing the matter, it is for the domestic legal system of each member state to designate the courts and tribunals having jurisdiction and to lay down the detailed procedural rules governing actions for safeguarding rights which individuals derive directly from Community law, provided that such rules are not less favourable than those governing similar domestic actions (principle of equivalence) and that they do not render practically impossible or excessively difficult the exercise of rights conferred by Community law (principle of effectiveness)." EC Treaty 81 1 Cites 1 Citers [ Bailii ]  WWF -World Wide Fund for Nature (Formerly World Wildlife Fund), World Wildlife Fund Inc v World Wrestling Federation Entertainment Inc Times, 13 November 2001; [2002] FSR 32; [2001] EWHC Ch 482 1 Oct 2001 ChD The Hon Mr Justice Jacob Intellectual Property, Contract, Damages The Fund sought summary relief against the use of the sign 'WWF' by the defendants, in breach of a contract. The defendants urged that the contract operated in restraint of trade. There had been long running and widespread trade mark disputes, resolved eventually by an agreement where the defendants undertook not to use the initials. That agreement came to be ignored by the defendants, and eventually the plaintiffs began this action. They argued that any contract in restraint of trade was void unless shown to be reasonable, and that in this case there was no prospect of confusion. The agreement was void. Arguments as to restraint of trade in intellectual property disputes must show some real and unreasonable fetter on trade. In this case though the Fund showed a reasonable need for such restraint. The court thought it would be odd if breach of an ordinary restraint of trade covenant (not to work in a defined area at a defined job for a defined time) did not attract an account, whereas breach of a lesser restraint (not to use a trademark in a trade otherwise permitted) did, and refused an account. 1 Cites 1 Citers [ Bailii ]  Sajid v Sussex Muslim Society [2001] EWCA Civ 1684; [2002] IRLR 113 2 Oct 2001 CA Mummery, Laws LJJ Employment, Contract The defendant appealed against the strike out of parts of its defence. The claimant was employed as the mosque director and imam. He had brought an action in the Industrial Tribunal alleging wrongful dismissal, but notifying the defendants that any excess above what the tribunal could order would be sought in the current action. That action had been withdrawn on commencement of the High Court proceedings. The defence had been that this was an abuse of process. Held: The judge was correct. The case of Barber was to be distinguished because in the case the claimant had expressly reserved the roght to commence these proceedings: "The underlying policy of cause of action estoppel and related doctrines, which are usually classified under the heading res judicata, is that of finality in litigation and the avoidance of the multiplicity of proceedings. Save in special circumstances, it is contrary to public policy and may be an abuse of the process of the court to attempt to re-open in new proceedings a case which has already been litigated and finally determined by a court or tribunal in proceedings between the same parties or issues which could have been litigated properly between the parties in relation to the subject matter of the earlier litigation. This doctrine embodies, in my view, a principle of justice, not just policy. In the absence of special circumstances it is unjust for a party who spent time and money in obtaining a final determination of a claim or an issue in a claim to be faced with fresh proceedings from the other party seeking to re-litigate the same cause of action or the same issue." Employment Rights Act 1996 98(1)(b) 1 Cites 1 Citers [ Bailii ]  Ward and Another v NFU Mutual Finance Ltd [2001] EWCA Civ 1517 4 Oct 2001 CA Contract Claim for damages on purchase of tractor said to be not of merchantable quality. Held: Appeal dismissed; appeal in relation to VAT allowed; appellants to pay Wards' costs summarily assessed [ Bailii ]  Sonatrach Petroleum Corporation (Bvi) v Ferrell International Ltd [2001] EWHC 481 (Comm) 4 Oct 2001 ComC Contract 1 Cites [ Bailii ]  Smith and Another v Peter North and Partners Gazette, 25 October 2001 8 Oct 2001 CA Judge LJ, Parker LJ, Bodey J Professional Negligence, Damages, Contract The claimants bought property at a price based upon a valuation provided by the defendants. They sought damages being the costs of repairing the property, the necessity of such repairs not having been revealed by the report. Expert valuation showed that the property, even unrepaired, exceeded in value the price paid. The defendants obtained summary judgment on the basis that no damages were payable. The claimant appealed. Held: the damages in negligence would be nil, but in contract, the damages payable were what was required in order to put the claimants in the position they would have been in the absence of a breach. Even so, the 'cost of repairs' basis would be inappropriate. It was irreconcilable with restitutionary or compensatory principles underlying the award of damages.  Bhangu and Another v Jagdev and others [2001] EWCA Civ 1504 9 Oct 2001 CA Rix LJ Contract Renewed application for permission to appeal [ Bailii ]  Electricity Corporation of New Zealand Ltd v Fletcher Challenge Energy Ltd [2002] 2 NZLR 433; (2001) 7 NZBLC 103, 477; [2001] NZCA 289 10 Oct 2001 Richardson P, Thomas J, Keith J, Blanchard J, McGrath J Commonwealth, Contract Court of Appeal of New Zealand Held: "The court has an entirely neutral approach when determining whether the parties intended to enter into a contract. Having decided that they had that intention, however, the court's attitude will change. It will then do its best to give effect to their intention and, if at all possible, to uphold the contract despite any omissions or ambiguities." 1 Citers [ Nzlii ]  Actionstrength Limited v International Glass Engineering, In Gl En S P A , Saint-Gobain Glass UK Limited [2001] EWCA Civ 1477; [2002] 1 WLR 566 10 Oct 2001 CA Lord Justice Simon Brown, Lord Justice Peter Gibson and Lord Justice Tucke Contract, Construction, Estoppel The claimant sought payment for works undertaken. They had been given a promise that in return for not withdrawing their workforce from the site, the second defendants would redirect payments due to the first defendant to the claimant. When it came to it, they asserted that that agreement was void under the Act since it was not evidenced in writing. At this stage the issue was whether the agreement was a guarantee or an agreement accepting a primary obligation. They answered that since the liability was contingent upon non-payment it was not a primary obligation. Held In these cases the court must look to the substance more than the form. The agreement fell within the act, and no estoppel arose. Statute of Frauds 1677 4 1 Cites 1 Citers [ Bailii ]   Farley v Skinner; HL 11-Oct-2001 - Times, 15 October 2001; Gazette, 18 October 2001; [2001] UKHL 49; [2002] 2 AC 732; [2001] 3 WLR 899; [2001] All ER 801  Burke and others v Giumba and others [2001] EWCA Civ 1561 12 Oct 2001 CA Ward LJ Contract [ Bailii ]  Diane Modahl v British Athletic Federation Gazette, 08 November 2001; [2001] EWCA Civ 1447; [2002] 1 WLR 1192 12 Oct 2001 CA Lord Justice Mance Lord Justice Latham And Lord Justice Jonathan Parker Natural Justice, Contract The claimant had been banned from competing as an athlete after failing a drugs test which she said was faulty. Her appeal was upheld, but she claimed damages for breach of contract in failing to provide an unbiased hearing. She appealed dismissal of her action. Held: Though there was no written contract between her and the defendant, they had accepted an obligation to appoint a panel in accordance with their rules. They were not however liable for any breach of the rules of natural justice by individual panel members because they had provided the appeal. 1 Citers [ Bailii ]   Paragon Finance plc v Nash etc; CA 15-Oct-2001 - Times, 25 October 2001; Gazette, 15 November 2001; [2001] EWCA Civ 1466; [2002] 1 WLR 685  Aventis Agriculture Limited (Formerly Known As Rhone-Poulenc Agriculture Limited) v Horstine Farmery Limited [2001] EWCA Civ 1500 15 Oct 2001 CA Contract, Commercial [ Bailii ]  BT3G Limited and Others v The Secretary of State for Trade and Industry Gazette, 15 November 2001; [2001] EWCA Civ 1448 17 Oct 2001 CA Lord Phillips MR, Lord Justice Henry Several companies put in bids for communications licences. The auction terms required some companies to disassociate themselves from each other. The successful companies who met this requirement were required to begin payments immediately, but others were allowed to commence payments on compliance with the preconditions. The claimant sought judicial review of the decisions, as providing state aid. It was held that such fortuitous consequences of a contract could not be described as state aid, and indeed as an auction or trade sale by competitive tender, it was outside the rules against state aid. ECTreaty Art 87(1) [ Bailii ]  Gloyne v Richardson and Another [2001] EWCA Civ 1689 23 Oct 2001 CA Aldous, Laws LJJ Contract, Company [ Bailii ]  P and O Ferrymasters Ltd v Radicon Ltd [2001] EWCA Civ 1671 29 Oct 2001 CA Contract Wheter a debt claim was successfully factored. [ Bailii ]  Marsden v Elston and Another [2001] EWCA Civ 1746 5 Nov 2001 CA Company, Contract Appeal against award of damages for breach of agreement on resignation of company director. [ Bailii ]  Invensys Plc and others v Automotive Sealing Systems Ltd. [2001] EWHC 501 (Comm) 8 Nov 2001 ComC Thomas J Contract The contract provided that a certificate made by an expert was to be conclusive save in the case of manifest error. Held: The expert's reasons could be examined in order to determine whether he had made a manifest error. The contract provided for the expert to give reasons, and the parties must have contemplated that those reasons could be examined to see whether any manifest error had been made. 1 Citers [ Bailii ]  Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd [2001] EWHC 529 (QB) 9 Nov 2001 QBD Contract The court examined the subject of mistake as a vitiating factor in the law of contract. 1 Citers [ Bailii ]  Willia Corporate Finance Plc v Adler [2001] EWCA Civ 1666 9 Nov 2001 CA Contract [ Bailii ]  Amoco (Uk) Exploration Company v British American Offshore Ltd [2001] EWHC 485 (Comm) 16 Nov 2001 ComC Langley J Contract 1 Cites [ Bailii ]  Naylors Timber Recovery Ltd v Jones (T/A Ark Pallets) [2001] EWCA Civ 1809 16 Nov 2001 CA Chadwick LJ Contract Renewed application for permission to appeal against an order settling contract dispute. [ Bailii ]  Inshore Services (International) Ltd v NFFO Services Ltd, Mark Stanley Hame [2001] EWCA Civ 1722 20 Nov 2001 CA Lord Justice Brooke, Lord Justice Latham, And, Mr Justice Burton Contract, Torts - Other Appeal against finding of wrongful inducing and procuring of breach of contract. [ Bailii ]  Lloyd and others v Dugdale and Another Gazette, 06 December 2001; [2001] EWCA Civ 1754; [2002] 2 PandCR 13; [2001] 48 EGCS 129; [2001] NPC 168; [2002] WTLR 863 21 Nov 2001 CA Lord Justice Kennedy, Lord Justice Mummery, And, Sir Christopher Slade Landlord and Tenant, Estoppel, Land, Contract, Trusts The claimants asserted a right to possession of land, and the defendant resisted, claiming a proprietary estoppel. A predecessor had intended to grant a sub-lease to the defendant, who had arranged for his company JAD Ltd to execute major works on the strength of that promise. JAD was given permission to store items there, but JAD Ltd took up possession. The sub-lease was never signed. The head-lease was assigned to the claimants, subject to any rights of the defendants. Held: No notice was effective. Whatever estoppel arose, was in favour of JAD, not his company, and it was in possession, not him. The assignment defeated the claim of JAD Ltd by section 20. No constructive trust arose, because the claimant's conscience was not deemed to be affected. The court set out the principles applying: "(1) Even in a case where, on a sale of land, the vendor has stipulated that the sale shall be subject to stated possible incumbrances or prior interests, there is no general rule that the court will impose a constructive trust on the purchaser to give effect to them. (2) The court will not impose a constructive trust in such circumstances unless it is satisfied that the conscience of the estate owner is affected so that it would be inequitable to allow him to deny the claimant an interest in the property. (3) In deciding whether or not the conscience of the new estate owner is affected in such circumstances, the crucially important question is whether he has undertaken a new obligation, not otherwise existing, to give effect to the relevant encumbrance or prior interest. If, but only if, he has undertaken such a new obligation will a constructive trust be imposed. (4) Notwithstanding some previous authority suggesting the contrary, a contractual licence is not to be treated as creating a proprietary interest in land so as to bind third parties who acquire the land with notice of it, on this account alone: see Ashburn Anstalt v Arnold . . (5) Proof that the purchase price by a transferee has been reduced upon the footing that he would give effect to the relevant encumbrance or prior interest may provide some indication that the transferee has undertaken a new obligation to give effect to it: see Ashburn Anstalt v Arnold . . However, since in matters relating to the title to land certainty is of prime importance, it is not desirable that constructive trusts of land should be imposed in reliance on inferences from "slender materials"." Law of Property Act 1925 20(1) 70(1)(g) 1 Cites 1 Citers [ Bailii ]  Johnstone and Another v Bramley and Another [2001] EWCA Civ 1854 22 Nov 2001 CA Simon Brown LJ Contract Renewed application for permission to appeal. [ Bailii ]   Esso Petroleum Co Ltd v Niad Ltd; ChD 22-Nov-2001 - [2001] EWHC Ch 458; [2001] All ER (D) 324  utherland v Barry and Barry [2001] ScotCS 269 23 Nov 2001 SCS Lord Eassie Scotland, Torts - Other, Contract 1 Cites 1 Citers [ ScotC ] - [ Bailii ]   Bogie Trading As Oakbank Services v The Forestry Commission; SCS 23-Nov-2001 - [2001] ScotCS 267; 2002 SCLR 278  Kena Kena Properties Limited v The Attorney General No 44 of 2000 27 Nov 2001 PC Lord Nicholls of Birkenhead, Lord Hoffmann, Lord Hobhouse of Woodborough, Lord Millett, Lord Scott of Foscote Contract, Commonwealth (New Zealand) The claimants asserted that they had entered into contracts for the supply of nursing home facilities, and in return received payments from the government towards the costs. The contract provided for the increase of payments annually. The Act provided that under contracts certain values were to be adjusted automatically. The rates were not raised, but not as provided under the Act, and the claimants sought payment. The government agency asserted that no contract existed but rather the payments were made as grants, and were not affected by the Act. Held: There was no requirement that a grant must be paid direct to the person intended to be benefited, the claim was in effect a claim of the same money again. The Act looked at it from the viewpoint of the government as payer. In their view it was in the nature of a grant or subsidy, and was not caught by the Act. Goods and Services Tax Act 1985 78(2) (New Zealand) [ PC ] - [ PC ]  Carnell v Middleton and Another [2001] EWCA Civ 1878 27 Nov 2001 CA Waller LJ Construction, Contract Application for leave to appeal - construction contract dispute. [ Bailii ]  Pendleton and Another v Westwater and Another [2001] EWCA Civ 1841 28 Nov 2001 CA Contract 1 Cites [ Bailii ]   Shyam Jewellers Limited v M Cheeseman; CA 29-Nov-2001 - [2001] EWCA Civ 1818  BHP Petroleum Great Britain Ltd v Chesterfield Properties Ltd and another Gazette, 01 February 2002; Times, 21 February 2002; [2002] 2 WLR 672; [2002] 1 All ER 821; Independent, 06 December 2001; [2001] EWCA Civ 1797; [2002] Ch 194 30 Nov 2001 CA Mr Justice Judge and Mr Justice Jonathan Parker and Mr Justice Bodey Landlord and Tenant, Contract The claimant granted a lease to the respondents, and then assigned the reversion to another company. It gave notice to the tenant of its desire to be released from its obligations as landlord. The tenant did not serve any counter-notice. Defects occurred for which the landlord would be liable. The agreement for lease provided that the obligations were personal to the landlord and not capable of assignment. The question at issue was whether such a collateral agreement was covered by the 1995 Act. The definition in the Act referred to the landlord for the time being. That could not include obligations which were personal to the landlord, and so the landlord was not released by the assignment and notice. In an agreement, the prospective landlord undertook to complete repairs. After the lease had been executed, the reversion was transferred, and he sought to use the Act to obtain its release from the obligation. The tenant took no steps to counter the notice. Held: The covenant was a personal one, and therefore not given in his capacity as landlord 'from time to time.' Accordingly the Act could not be used to evade responsibility. Landlord and Tenant (Covenants) Act 1995 3 8 28 1 Cites 1 Citers [ Bailii ]  Inland Revenue Commissioners v Fry Times, 10 December 2001; Gazette, 06 February 2002; [2001] All ER (D) 434 (Nov) 30 Nov 2001 ChD Justice Jacob Income Tax, Contract The Commissioners chased a liability to tax of over £100,000. The taxpayer's husband sent a cheque, expressed to be in full and final satisfaction for a much lower sum. It was cashed, and the Commissioners now sought payment of the balance. Held: The claim succeeded. There had been no meeting of minds such as would operate to reduce the overall sum due. The cheque had been paid in after being separated from the letter containing the terms suggested. A tax payer's liability to tax was not satisfied when the Revenue encashed a cheque accompanied by a letter saying it had been sent in full and final settlement of a larger sum and was to be encashed only in settlement. The cashing of the cheque gave rise only to a rebuttable presumption of acceptance. That presumption had been rebutted.  Mehdi v Bates Aka Muhammad Rafiq [2001] EWCA Civ 1948 3 Dec 2001 CA Simon Brown VP CA, Waller, Sedley LJJ Contract, Company Whether contract made personally or through company. [ Bailii ]  TICC Limited v Cosco (UK) Limited [2001] EWCA Civ 1862 5 Dec 2001 CA Lord Justice Ward Lord Justice Kay And Lord Justice Rix Contract, Agency The claimants sought to have incorporated by notice into a contract of bill of lading, the terms of a freight surcharge. Notice had been given to the shipping agents in Hong Kong only. The shippers claimed the surcharge under the 1992 Act, saying the defendants inherited the notice from their shipping agents. The first court held that the parties were parties to the contract along with their agents. Held: The company had not done enough to give notice to incorporate the surcharge within the contract. Appeal dismissed. Carriage of Goods by Sea Act 1992 3 1 Cites [ Bailii ]  Gunn and Another v AMF Aviation Enterprises Ltd and Another [2001] EWCA Civ 1962 7 Dec 2001 CA Dyson LJ Contract, Transport [ Bailii ]  Discain Project Services Ltd v Opecprime Developments Ltd (2) [2001] EWHC Technology 450 11 Dec 2001 TCC Judge Richard Seymour Q.C. Construction, Contract This was a dispute between contractors. D had been engaged to install balconies on flats constructed by O. Targets were set, but there were difficulties in obtaining supplies. Continued negotiations confused the situation. Eventually the contract was not completed. D sued for payment and O for damages. Held: The initial documentation did not create a contract, but what was then created was later varied. 1 Cites [ Bailii ]  Century 2000 Enterprises Ltd and Another v SFI Group Plc [2001] EWCA Civ 1986 11 Dec 2001 CA Auld, Ward, Robert Walker LJJ Contract, Landlord and Tenant The claimants appealed against rejection of their claim that an agreement entitled them to take a 35 years lease of the defendants. The contract had depended on complex conditions as to planning consents. Held: The appeal failed: "Ultimately, it is a question of deciding what the contract says, construed in its commercial context but without speculation about the parties' unexpressed hopes and motives." 1 Cites [ Bailii ]  Ranger v Ranger and Another [2001] EWCA Civ 2073 12 Dec 2001 CA Contract [ Bailii ]  Montrod Ltd v Grundkotter Fleischvertriebs GmbH [2002] 1 WLR 1975; [2001] EWCA Civ 1954 20 Dec 2001 CA Contract, Commercial A beneficiary under a letter of credit does not owe a duty of care to the applicant (not the buyer) in presenting documents under the letter of credit. 1 Citers [ Bailii ]  John Watson Services Ltd v Mercia Plumbing and Heating [2001] EWCA Civ 2026 21 Dec 2001 CA Contract [ Bailii ]  |
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