Leofelis SA & Anor v Lonsdale Sports Ltd & Ors [2009] EWCA Civ 68 (19 February 2009)

Leofelis SA & Anor v Lonsdale Sports Ltd & Ors [2009] EWCA Civ 68 (19 February 2009)

The Appellants were entitled to the sterling equivalent of €1,662,500 calculated at the exchange rate prevailing at the time of payment (15 July 2008), and Dorsey & Whitney (Europe) LLP, as escrow agents, were bound to pay that amount. There was no evidence the Appellants agreed to an earlier conversion to sterling. The correct amount of interest that would have accrued if the funds had been held in Euros must be determined by a Master if not agreed.

Citation
[2009] EWCA Civ 68
Parties
Claimant Respondent: Leofelis SA; Claimant Respondent: Leeside SRL (in liquidation); Defendant Appellant: Lonsdale Sports Ltd; Defendant Appellant: The Trade Mark Licensing Co Ltd; Defendant Appellant: Sports World International Ltd; Respondent to the Application: Dorsey & Whitney (Europe) LLP
Jurisdiction
England and Wales
Judgment Date
19 February 2009
Procedural Posture
Civil Appeal / Post Judgment Application Following Court of Appeal Decision
Outcome
Application granted in part; declarations made; issue of interest calculation referred to a Master; costs reserved.
Legal Topics
Enforcement of Court Orders, Currency Conversion in Payments, Interest on Escrowed Funds, Joinder of Parties, Costs and Indemnity
Civil Procedure Trusts and Escrow Contract Enforcement of Court Orders Currency Conversion in Payments Interest on Escrowed Funds Joinder of Parties Costs and Indemnity

Case Brief

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Parties

Leofelis SA

Claimant Respondent

Leeside SRL (in liquidation)

Claimant Respondent

Lonsdale Sports Ltd

Defendant Appellant

The Trade Mark Licensing Co Ltd

Defendant Appellant

Sports World International Ltd

Defendant Appellant

Dorsey & Whitney (Europe) LLP

Respondent to the Application

Procedural Posture

Civil Appeal / Post Judgment Application Following Court of Appeal Decision

Legal Issues

  1. 1 Whether the correct sterling equivalent of €1,662,500 should be calculated at the time of payment to the Appellants
  2. 2 Whether Dorsey & Whitney (Europe) LLP was obliged to pay the correct amount to the Appellants
  3. 3 Whether the Appellants agreed to the conversion of Euros to sterling in April 2007

Ratio Decidendi

The Appellants were entitled to the sterling equivalent of €1,662,500 calculated at the exchange rate prevailing at the time of payment (15 July 2008), and Dorsey & Whitney (Europe) LLP, as escrow agents, were bound to pay that amount. There was no evidence the Appellants agreed to an earlier conversion to sterling. The correct amount of interest that would have accrued if the funds had been held in Euros must be determined by a Master if not agreed.

Court Disposition

Application granted in part; declarations made; issue of interest calculation referred to a Master; costs reserved.

Orders

  • Dorsey & Whitney (Europe) LLP added as a party to the application.
  • Declaration that Respondents were obliged to pay £2,500,000 and €1,662,500 (or £1,319,444.44 as at 15 July 2008) plus interest by 15 July 2008.