Cluttons LLP v Regis Group Ltd

Cluttons LLP v Regis Group Ltd

Cluttons LLP, as assignee of the benefit of the Regis guarantee under the Business Transfer Agreement, is entitled to enforce the guarantee to recover sums paid to settle the Firm's liability to Trinity House, as the loss was suffered by the Firm but satisfied by LLP, and Regis is obliged to indemnify for that loss. Alternatively, LLP is subrogated to the Firm's rights against Regis after satisfying the liability.

Parties
Claimant/respondent: Cluttons LLP; Defendant/appellant: Regis Group Ltd
Jurisdiction
England and Wales
Judgment Date
21 June 2012
Procedural Posture
Civil Appeal / Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Assignment of Contracts, Guarantees and Indemnities, Novation, Subrogation
Contract Law Commercial Law Assignment of Contracts Guarantees and Indemnities Novation Subrogation

Case Brief

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Parties

Cluttons LLP

Claimant/respondent

Regis Group Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal Judgment

Legal Issues

  1. 1 Whether Cluttons LLP is entitled to enforce the benefit of a guarantee given by Regis Group Ltd under a 2002 agreement
  2. 2 Whether the benefit of the guarantee was validly assigned to Cluttons LLP under the Business Transfer Agreement
  3. 3 Whether Cluttons LLP can recover sums paid to settle a liability originally owed by the Firm

Ratio Decidendi

Cluttons LLP, as assignee of the benefit of the Regis guarantee under the Business Transfer Agreement, is entitled to enforce the guarantee to recover sums paid to settle the Firm's liability to Trinity House, as the loss was suffered by the Firm but satisfied by LLP, and Regis is obliged to indemnify for that loss. Alternatively, LLP is subrogated to the Firm's rights against Regis after satisfying the liability.

Court Disposition

Appeal dismissed

Orders

  • Judgment for Cluttons LLP for £114,664 against Regis Group Ltd