EULER HERMES SA (NV) v MACKAYS STORES GROUP LIMITED & oRS.

EULER HERMES SA (NV) v MACKAYS STORES GROUP LIMITED & oRS.

The guarantee covered all liabilities accrued during its period of validity, regardless of when demand was made by HMRC. Euler Hermes's payment to HMRC was validly made under the guarantee and is recoverable from the Defendants under the indemnity. The demand under the indemnity was not obviously wrong and is conclusive of liability.

Parties
Claimant: Euler Hermes SA (NV) acting through its registered branch Euler Hermes UK; First Defendant: Mackays Stores Group Limited; Second Defendant: Mackays Stores (Holdings) Limited; Third Defendant: M. E. G. Renewables Limited; Fourth Defendant: M. E. G. Glenkiln Limited; Fifth Defendant: Mackays Group Trustees Limited; Sixth Defendant: Laroque Limited; Seventh Defendant: William McIlroy Swindon Limited; Eighth Defendant: Janpro Limited; Ninth Defendant: G. E. Worthington Limited
Jurisdiction
England and Wales
Judgment Date
25 July 2022
Procedural Posture
Commercial Claim (part 8 Cpr) / Judgment After Trial on Agreed Facts
Outcome
Claim allowed
Legal Topics
Construction of Guarantee, Termination of Guarantee, Indemnity Liability, Demand Guarantees, Manifest Error Clause
Contract Law Guarantee and Indemnity Commercial Law Construction of Guarantee Termination of Guarantee Indemnity Liability Demand Guarantees Manifest Error Clause

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Parties

Euler Hermes SA (NV) acting through its registered branch Euler Hermes UK

Claimant

Mackays Stores Group Limited

First Defendant

Mackays Stores (Holdings) Limited

Second Defendant

M. E. G. Renewables Limited

Third Defendant

M. E. G. Glenkiln Limited

Fourth Defendant

Mackays Group Trustees Limited

Fifth Defendant

Laroque Limited

Sixth Defendant

William McIlroy Swindon Limited

Seventh Defendant

Janpro Limited

Eighth Defendant

G. E. Worthington Limited

Ninth Defendant

Procedural Posture

Commercial Claim (part 8 Cpr) / Judgment After Trial on Agreed Facts

Legal Issues

  1. 1 Whether Euler Hermes was liable to pay HMRC under the guarantee after notice of termination
  2. 2 Whether the Defendants are liable under the indemnity for sums paid by Euler Hermes to HMRC
  3. 3 Whether a restitution claim could be advanced by Euler Hermes

Ratio Decidendi

The guarantee covered all liabilities accrued during its period of validity, regardless of when demand was made by HMRC. Euler Hermes's payment to HMRC was validly made under the guarantee and is recoverable from the Defendants under the indemnity. The demand under the indemnity was not obviously wrong and is conclusive of liability.

Court Disposition

Claim allowed

Orders

  • Defendants to pay Euler Hermes the principal sum of £551,146.36
  • Consequential matters such as interest and costs to be determined if not agreed