The Trademark Licensing Co Ltd & Anor v Leofelis SA & Ors [2012] EWCA Civ 985 (23 July 2012)

The Trademark Licensing Co Ltd & Anor v Leofelis SA & Ors [2012] EWCA Civ 985 (23 July 2012)

Leofelis cannot claim damages for lost profits after 28 September 2007 unless it can plead and prove that Lonsdale's breach was causative of its termination of the licence; current pleadings do not establish this causal link. Gain-based damages are not available where compensatory damages for actual loss are recoverable.

Citation
[2012] EWCA Civ 985
Parties
Claimant and Part 20 Defendant, Respondent: The Trademark Licensing Co Ltd; Claimant and Part 20 Defendant, Respondent: Lonsdale Sports Ltd; Defendant and Part 20 Claimant, Appellant: Leofelis SA; Third Party, Respondent: Punch GmbH; Third Party, Respondent: Sports and Clothing SIA; Third Party, Respondent: Latvian Deluxe SIA; Third Party, Respondent: P. S. F. International BV; Third Party, Respondent: Geurt Jan Schotsman
Jurisdiction
England and Wales
Judgment Date
23 July 2012
Procedural Posture
Appeal / Court of Appeal Judgment on Summary Judgment Application
Outcome
Appeal adjourned to allow Leofelis to amend its pleadings; summary judgment in favour of Lonsdale upheld unless causation is properly pleaded.
Legal Topics
Breach of Contract, Repudiatory Breach, Damages, Trade Mark Licensing, Causation, Gain Based Damages
Contract Law Intellectual Property Breach of Contract Repudiatory Breach Damages Trade Mark Licensing Causation Gain Based Damages

Case Brief

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Parties

The Trademark Licensing Co Ltd

Claimant and Part 20 Defendant, Respondent

Lonsdale Sports Ltd

Claimant and Part 20 Defendant, Respondent

Leofelis SA

Defendant and Part 20 Claimant, Appellant

Punch GmbH

Third Party, Respondent

Sports and Clothing SIA

Third Party, Respondent

Latvian Deluxe SIA

Third Party, Respondent

P. S. F. International BV

Third Party, Respondent

Geurt Jan Schotsman

Third Party, Respondent

Procedural Posture

Appeal / Court of Appeal Judgment on Summary Judgment Application

Legal Issues

  1. 1 Whether Leofelis can claim damages for lost profits after 28 September 2007 based on Lonsdale's alleged repudiatory breach
  2. 2 Whether causation links Lonsdale's breach to Leofelis' termination of the licence
  3. 3 Whether gain-based damages are recoverable post-termination

Ratio Decidendi

Leofelis cannot claim damages for lost profits after 28 September 2007 unless it can plead and prove that Lonsdale's breach was causative of its termination of the licence; current pleadings do not establish this causal link. Gain-based damages are not available where compensatory damages for actual loss are recoverable.

Court Disposition

Appeal adjourned to allow Leofelis to amend its pleadings; summary judgment in favour of Lonsdale upheld unless causation is properly pleaded.

Orders

  • Leofelis granted time to draft a Re-re-amended Defence and Counterclaim alleging causation.
  • If parties agree on adequacy of amended pleadings, appeal may be allowed; otherwise, further argument required.