Tele2 International Card Company SA & Ors v Post Office Ltd

Tele2 International Card Company SA & Ors v Post Office Ltd

The Post Office was entitled to terminate the Agreement for material breach of clause 3.10.2 (failure to provide Parent Company Letters), as the Agreement expressly made any such breach material and irremediable, and clause 16 precluded any waiver or affirmation by continued performance. The claimants failed to prove any novation or assignment to C3 (UK), so only Tele2 Ireland had standing, but it suffered no loss as it did not provide services after March 2004 and no evidence was adduced of any loss to it. The Post Office's counterclaims for Expiry Revenue and Additional Fees succeeded on the contractual construction advanced by the Post Office.

Parties
Claimant: Tele2 International Card Company SA; Claimant: Kub 2 Technology Limited (formerly C3 Calling Card Company (Ireland) Limited); Claimant: Kub 7 Technology Limited (formerly Calling Card Company (UK) Limited); Defendant/counterclaimant: Post Office Limited
Jurisdiction
England and Wales
Judgment Date
25 February 2008
Procedural Posture
Commercial Contract Dispute / Judgment After Full Trial
Outcome
Claim dismissed; counterclaim allowed.
Legal Topics
Breach of Contract, Damages, Termination of Contract, Interpretation of Contract, Waiver and Affirmation, Counterclaim, Quantum of Damages
Contract Law Commercial Law Breach of Contract Damages Termination of Contract Interpretation of Contract Waiver and Affirmation Counterclaim +1 more

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Parties

Tele2 International Card Company SA

Claimant

Kub 2 Technology Limited (formerly C3 Calling Card Company (Ireland) Limited)

Claimant

Kub 7 Technology Limited (formerly Calling Card Company (UK) Limited)

Claimant

Post Office Limited

Defendant/counterclaimant

Procedural Posture

Commercial Contract Dispute / Judgment After Full Trial

Legal Issues

  1. 1 Whether the Post Office wrongfully terminated the Agreement with the Tele2 parties;
  2. 2 Whether the Post Office was entitled to terminate for breach of clause 3.10.2 (Parent Company Letters);
  3. 3 Whether the Post Office affirmed the Agreement by continuing performance after breach;

Ratio Decidendi

The Post Office was entitled to terminate the Agreement for material breach of clause 3.10.2 (failure to provide Parent Company Letters), as the Agreement expressly made any such breach material and irremediable, and clause 16 precluded any waiver or affirmation by continued performance. The claimants failed to prove any novation or assignment to C3 (UK), so only Tele2 Ireland had standing, but it suffered no loss as it did not provide services after March 2004 and no evidence was adduced of any loss to it. The Post Office's counterclaims for Expiry Revenue and Additional Fees succeeded on the contractual construction advanced by the Post Office.

Court Disposition

Claim dismissed; counterclaim allowed.

Orders

  • Claimants' claims dismissed in full.
  • Judgment for Post Office Limited against Tele2 Ireland for Expiry Revenue in the sum of £833,152.