Organic Group Ltd v Charterhouse Macmillan Group Inc [2007] EWHC 1275 (QB) (01 May 2007)

Organic Group Ltd v Charterhouse Macmillan Group Inc [2007] EWHC 1275 (QB) (01 May 2007)

The Consultancy Agreement is not void for uncertainty; the sums are payable regardless of whether services were rendered, as the contract is a retainer and the defendant cannot rely on its own failure to request services as a defence. There is no real prospect of the defendant successfully defending the claim.

Citation
[2007] EWHC 1275
Parties
Claimant/appellant: Organic Group Limited; Defendant/respondent: Charterhouse Macmillan Group Inc
Jurisdiction
England and Wales
Judgment Date
01 May 2007
Procedural Posture
Appeal / Appeal Against Master's Decision to Set Aside Default Judgment
Outcome
Appeal allowed; Master's decision reversed; default judgment reinstated.
Legal Topics
Consultancy Agreement, Failure of Consideration, Void for Uncertainty, Agreement to Agree
Contract Law Consultancy Agreement Failure of Consideration Void for Uncertainty Agreement to Agree

Case Brief

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Parties

Organic Group Limited

Claimant/appellant

Charterhouse Macmillan Group Inc

Defendant/respondent

Procedural Posture

Appeal / Appeal Against Master's Decision to Set Aside Default Judgment

Legal Issues

  1. 1 Whether the Consultancy Agreement is void for uncertainty
  2. 2 Whether there was a total failure of consideration
  3. 3 Whether sums under the agreement are payable regardless of services rendered

Ratio Decidendi

The Consultancy Agreement is not void for uncertainty; the sums are payable regardless of whether services were rendered, as the contract is a retainer and the defendant cannot rely on its own failure to request services as a defence. There is no real prospect of the defendant successfully defending the claim.

Court Disposition

Appeal allowed; Master's decision reversed; default judgment reinstated.

Orders

  • Default judgment to stand.