DAR International FEF Co v AON Ltd

DAR International FEF Co v AON Ltd

The agreement required payment of brokerage into a jointly designated bank account; Aon breached the agreement by paying only FNS without such designation. The duty to pay into a designated account was owed to both DAR and FNS, and payment to one did not discharge the obligation. DAR is entitled to damages for breach, subject to unresolved issues regarding quantum and the $400,000 threshold.

Parties
Claimant/respondent: DAR International F. E. F. Co; Defendant/appellant: Aon Limited
Jurisdiction
England and Wales
Judgment Date
18 June 2004
Procedural Posture
Civil Appeal / Appeal From High Court (commercial Court Division) to Court of Appeal
Outcome
Appeal dismissed on substantive issue; judge's order to be reformulated as a declaration and remitted for further determination of outstanding issues.
Legal Topics
Consideration, Joint Creditors, Remuneration Agreements, Breach of Contract, Damages, Construction of Contracts
Contract Law Commercial Law Consideration Joint Creditors Remuneration Agreements Breach of Contract Damages Construction of Contracts

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Parties

DAR International F. E. F. Co

Claimant/respondent

Aon Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (commercial Court Division) to Court of Appeal

Legal Issues

  1. 1 Whether there was a binding agreement between the parties regarding brokerage split and payment terms
  2. 2 Whether DAR provided consideration for the agreement
  3. 3 Whether payment to one joint creditor satisfies the obligation to both under the agreement

Ratio Decidendi

The agreement required payment of brokerage into a jointly designated bank account; Aon breached the agreement by paying only FNS without such designation. The duty to pay into a designated account was owed to both DAR and FNS, and payment to one did not discharge the obligation. DAR is entitled to damages for breach, subject to unresolved issues regarding quantum and the $400,000 threshold.

Court Disposition

Appeal dismissed on substantive issue; judge's order to be reformulated as a declaration and remitted for further determination of outstanding issues.

Orders

  • Appeal dismissed
  • Judge's order to be reformulated to a declaratory order reflecting damages as the remedy and outstanding issues to be determined