The Trademark Licensing Co Ltd & Anor v Leofelis SA & Ors

The Trademark Licensing Co Ltd & Anor v Leofelis SA & Ors

On the case as pleaded and argued, Leofelis cannot recover damages for loss of profits after 28 September 2007 because its own act of termination, based on the German injunction, would have ended the contract regardless of Lonsdale's breach. However, Leofelis may be permitted to amend its pleadings to allege a sufficient causal link between Lonsdale's course of conduct (including the SIA licence and German injunction) and the termination, which, if proved, could allow a claim for post-termination damages. A gain-based damages claim is not available on the facts as pleaded.

Parties
Claimant: The Trademark Licensing Co Ltd; Claimant: Lonsdale Sports Ltd; Defendant/part 20 Claimant/appellant: Leofelis SA; Third Party: Punch GmbH; Third Party: Sports and Clothing SIA; Third Party: Latvian Deluxe SIA; Third Party: P. S. F. International BV; Third Party: Geurt Jan Schotsman
Jurisdiction
England and Wales
Judgment Date
23 July 2012
Procedural Posture
Civil Appeal / Appeal From Summary Judgment in High Court; Application for Summary Judgment on Scope of Damages Claim
Outcome
Appeal adjourned to allow Leofelis to amend its pleadings; summary judgment for Lonsdale on post-termination damages not finalised.
Legal Topics
Breach of Contract, Repudiatory Breach, Damages, Causation, Trade Mark Licensing, Summary Judgment
Contract Law Commercial Law Intellectual Property Breach of Contract Repudiatory Breach Damages Causation Trade Mark Licensing +1 more

Case Brief

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Parties

The Trademark Licensing Co Ltd

Claimant

Lonsdale Sports Ltd

Claimant

Leofelis SA

Defendant/part 20 Claimant/appellant

Punch GmbH

Third Party

Sports and Clothing SIA

Third Party

Latvian Deluxe SIA

Third Party

P. S. F. International BV

Third Party

Geurt Jan Schotsman

Third Party

Procedural Posture

Civil Appeal / Appeal From Summary Judgment in High Court; Application for Summary Judgment on Scope of Damages Claim

Legal Issues

  1. 1 Whether Leofelis can recover damages for loss of profits after 28 September 2007 based on Lonsdale's alleged repudiatory breach of the 2002 licence agreement
  2. 2 Whether the chain of causation between Lonsdale's breach and Leofelis' termination of the contract is sufficient to allow post-termination damages
  3. 3 Whether a gain-based damages claim is available to Leofelis for Lonsdale's post-termination gains

Ratio Decidendi

On the case as pleaded and argued, Leofelis cannot recover damages for loss of profits after 28 September 2007 because its own act of termination, based on the German injunction, would have ended the contract regardless of Lonsdale's breach. However, Leofelis may be permitted to amend its pleadings to allege a sufficient causal link between Lonsdale's course of conduct (including the SIA licence and German injunction) and the termination, which, if proved, could allow a claim for post-termination damages. A gain-based damages claim is not available on the facts as pleaded.

Court Disposition

Appeal adjourned to allow Leofelis to amend its pleadings; summary judgment for Lonsdale on post-termination damages not finalised.

Orders

  • Leofelis granted opportunity to amend its Defence and Counterclaim to allege facts establishing causation for post-termination damages.
  • Timetable set for parties to submit and respond to draft amended pleadings.