WWF- World Wide Fund for Nature & Anor v World Wrestling Federation Entertainment Inc [2007] EWCA Civ 286 (02 April 2007)

Parties

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Preliminary Issue From High Court (chancery Division)

Legal Issues

1. 1 Whether a claimant is entitled to claim damages in the form of a reasonable payment (Wrotham Park damages) as a quid pro quo for relaxing rights under a contract breached by the defendant
2. 2 Whether such a claim is precluded by res judicata, estoppel, or abuse of process due to prior refusal to amend pleadings to seek an account of profits
3. 3 Whether Wrotham Park damages are compensatory or gains-based in nature

Ratio Decidendi

The Court held that, as a matter of law, a claimant may in appropriate circumstances seek damages in the form of a reasonable payment (Wrotham Park damages) as a quid pro quo for relaxing rights under a breached contract, even where an injunction has been granted. Such damages are compensatory, not gains-based, and are not precluded by prior refusal to allow an amendment to plead an account of profits, as the remedies are not the same. The Fund is entitled to seek such damages at the inquiry, but entitlement in fact remains to be determined.

Court Disposition

Appeal dismissed on the main legal issue; Fund entitled in law to seek Wrotham Park damages at inquiry; factual entitlement to be determined at inquiry.

Orders

• Declaration that the Claimants are entitled in law to seek damages in the form of a reasonable payment as a quid pro quo for relaxing their rights under the Agreement.
• Question of factual entitlement to such damages to be determined at the inquiry as to damages.