Leofelis SA & Anor v Londsdal Sports Ltd & Ors

Leofelis SA & Anor v Londsdal Sports Ltd & Ors

Damages for breach of contract cannot be claimed for periods after the contract was terminated for reasons unrelated to the breach in question. The court must take into account subsequent events that bring the contract to an end, and the innocent party cannot recover for loss of future royalties after it has itself terminated the contract, regardless of whether it later discovers a repudiatory breach by the other party. The claim for damages after late 2007 is bound to fail and summary judgment is granted to Lonsdale on that issue.

Parties
Claimant (hc05 C02842) / Defendant (hc09 C00370): Leofelis SA; Claimant (hc05 C02842): Leeside SRL; Defendant (hc05 C02842) / Claimant (hc09 C00370): Lonsdale Sports Limited; Defendant (hc05 C02842) / Claimant (hc09 C00370): The Trademark Licensing Company Limited; Defendant (hc05 C02842): Sports World International Limited; Third Party (hc09 C00370): Punch GmbH; Third Party (hc09 C00370): Sports and Clothing SIA (In Liquidation); Third Party (hc09 C00370): Latvian Deluxe SIA (In Liquidation); Third Party (hc09 C00370): P. S. F. International BV; Third Party (hc09 C00370): Geurt Jan Schotsman
Jurisdiction
England and Wales
Judgment Date
09 March 2012
Procedural Posture
Civil (commercial/contract) / Summary Judgment Applications in Two Related Actions
Outcome
Summary judgment granted in part for Lonsdale; claims for damages after late 2007 struck out.
Legal Topics
Breach of Contract, Damages Assessment, Trade Mark Licensing, Summary Judgment, Repudiatory Breach, Causation of Loss
Contract Law Intellectual Property Law Breach of Contract Damages Assessment Trade Mark Licensing Summary Judgment Repudiatory Breach Causation of Loss

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Parties

Leofelis SA

Claimant (hc05 C02842) / Defendant (hc09 C00370)

Leeside SRL

Claimant (hc05 C02842)

Lonsdale Sports Limited

Defendant (hc05 C02842) / Claimant (hc09 C00370)

The Trademark Licensing Company Limited

Defendant (hc05 C02842) / Claimant (hc09 C00370)

Sports World International Limited

Defendant (hc05 C02842)

Punch GmbH

Third Party (hc09 C00370)

Sports and Clothing SIA (In Liquidation)

Third Party (hc09 C00370)

Latvian Deluxe SIA (In Liquidation)

Third Party (hc09 C00370)

P. S. F. International BV

Third Party (hc09 C00370)

Geurt Jan Schotsman

Third Party (hc09 C00370)

Procedural Posture

Civil (commercial/contract) / Summary Judgment Applications in Two Related Actions

Legal Issues

  1. 1 Whether damages for breach of contract can be claimed for periods after the contract was terminated for unrelated reasons
  2. 2 Whether the innocent party can recover damages for lost royalties after it has itself terminated the contract
  3. 3 Whether subsequent events curtail the period for which damages are recoverable

Ratio Decidendi

Damages for breach of contract cannot be claimed for periods after the contract was terminated for reasons unrelated to the breach in question. The court must take into account subsequent events that bring the contract to an end, and the innocent party cannot recover for loss of future royalties after it has itself terminated the contract, regardless of whether it later discovers a repudiatory breach by the other party. The claim for damages after late 2007 is bound to fail and summary judgment is granted to Lonsdale on that issue.

Court Disposition

Summary judgment granted in part for Lonsdale; claims for damages after late 2007 struck out.

Orders

  • Leofelis' claim for damages after late 2007 in the 2005 Action is struck out.
  • Leofelis' counterclaim for damages after 28 September 2007 in the 2009 Action is struck out.