Law Debenture Trust Corporation Plc v Elektrim SA & Anor

Law Debenture Trust Corporation Plc v Elektrim SA & Anor

The Contingent Payment was payable under condition 6(k) regardless of whether the bonds had been redeemed by the Repayment Maturity Date; the judge's approach to valuation of Elektrim's assets, including reliance on the Master Agreement for the PTC shares and the discounted cash flow for the PAK shares, was correct; damages were properly assessed by direct valuation rather than loss of a chance; and no error was found in the judge's treatment of asset values or fixed/variable costs.

Parties
Claimant/1st Respondent: The Law Debenture Trust Corporation PLC; Appellant/defendant: Elektrim SA; 2nd Respondent/defendant: Concord Trust
Jurisdiction
England and Wales
Judgment Date
22 October 2010
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From High Court
Outcome
Appeal and cross-appeal dismissed
Legal Topics
Breach of Contract, Damages, Bondholder Rights, Trust Deeds, Valuation of Assets
Commercial Law Contract Law Breach of Contract Damages Bondholder Rights Trust Deeds Valuation of Assets

Case Brief

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Parties

The Law Debenture Trust Corporation PLC

Claimant/1st Respondent

Elektrim SA

Appellant/defendant

Concord Trust

2nd Respondent/defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From High Court

Legal Issues

  1. 1 Whether the Contingent Payment under condition 6(k) was payable if the bonds had not been redeemed by the Repayment Maturity Date
  2. 2 Proper approach to valuation of Elektrim's interest in PTC shares and PAK shares for damages
  3. 3 Whether damages should be assessed on a loss of a chance basis or by direct valuation

Ratio Decidendi

The Contingent Payment was payable under condition 6(k) regardless of whether the bonds had been redeemed by the Repayment Maturity Date; the judge's approach to valuation of Elektrim's assets, including reliance on the Master Agreement for the PTC shares and the discounted cash flow for the PAK shares, was correct; damages were properly assessed by direct valuation rather than loss of a chance; and no error was found in the judge's treatment of asset values or fixed/variable costs.

Court Disposition

Appeal and cross-appeal dismissed

Orders

  • Elektrim's appeal dismissed
  • Trustee's cross-appeal dismissed