Jet2.com Ltd v Blackpool Airport Ltd [2012] EWCA Civ 417 (02 April 2012)

Jet2.com Ltd v Blackpool Airport Ltd [2012] EWCA Civ 417 (02 April 2012)

The obligation to use best endeavours to promote Jet2's business under clause 1 of the Letter Agreement is sufficiently certain to be legally enforceable and required BAL to accommodate flights outside normal opening hours. BAL's refusal in October 2010 constituted a breach of contract. The obligation does not entitle BAL to restrict Jet2's movements solely due to financial loss, given the essential nature of out-of-hours operations to Jet2's business.

Citation
[2012] EWCA Civ 417
Parties
Claimant/respondent: JET2.COM LIMITED; Defendant/appellant: BLACKPOOL AIRPORT LIMITED
Jurisdiction
England and Wales
Judgment Date
02 April 2012
Procedural Posture
Appeal From High Court (commercial Court) / Court of Appeal Judgment
Outcome
Appeal dismissed; order below upheld.
Legal Topics
Best Endeavours Clauses, Certainty of Contractual Obligations, Airport Operations, Estoppel by Convention
Contract Law Commercial Law Best Endeavours Clauses Certainty of Contractual Obligations Airport Operations Estoppel by Convention

Case Brief

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Parties

JET2.COM LIMITED

Claimant/respondent

BLACKPOOL AIRPORT LIMITED

Defendant/appellant

Procedural Posture

Appeal From High Court (commercial Court) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether clause 1 of the Letter Agreement imposes a legally enforceable obligation on BAL to accept aircraft movements outside normal opening hours
  2. 2 Whether the obligation to use best endeavours is too uncertain to be enforceable
  3. 3 Whether BAL is estopped by convention from denying Jet2's right to operate outside normal opening hours

Ratio Decidendi

The obligation to use best endeavours to promote Jet2's business under clause 1 of the Letter Agreement is sufficiently certain to be legally enforceable and required BAL to accommodate flights outside normal opening hours. BAL's refusal in October 2010 constituted a breach of contract. The obligation does not entitle BAL to restrict Jet2's movements solely due to financial loss, given the essential nature of out-of-hours operations to Jet2's business.

Court Disposition

Appeal dismissed; order below upheld.

Orders

  • BAL found in breach of contract for refusing to handle Jet2 flights outside normal opening hours.
  • No declaration granted defining scope of BAL's obligation for the remaining contract period.