Leofelis SA & Anor v Lonsdale Sports Ltd & Ors [2009] EWCA Civ 457 (19 February 2009)

Leofelis SA & Anor v Lonsdale Sports Ltd & Ors [2009] EWCA Civ 457 (19 February 2009)

The Appellants were entitled to the sterling equivalent of €1,662,500 as at the date of payment, not the lesser sum resulting from earlier conversion. Dorseys, as escrow agents, were bound to pay the correct amount and had no basis for unilateral conversion without the Appellants' agreement. The correct amount of interest is to be determined as if the funds had remained in Euros, with any factual dispute referred to a Master.

Citation
[2009] EWCA Civ 457
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 Application: Dorsey & Whitney (Europe) LLP
Jurisdiction
England and Wales
Judgment Date
19 February 2009
Procedural Posture
Civil Appeal / Post Judgment Application for Consequential Orders
Outcome
Application granted in part; declarations made; issue of interest calculation referred to Master; costs reserved.
Legal Topics
Enforcement of Court Orders, Currency Conversion in Payments, Interest on Escrowed Funds, Joinder of Parties, Costs
Civil Procedure Trusts and Escrow Contract Enforcement of Court Orders Currency Conversion in Payments Interest on Escrowed Funds Joinder of Parties Costs

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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 Application

Procedural Posture

Civil Appeal / Post Judgment Application for Consequential Orders

Legal Issues

  1. 1 Whether the correct sterling equivalent of €1,662,500 as at the date of payment was paid to the Appellants
  2. 2 Whether Dorsey & Whitney (Europe) LLP was obliged to pay the correct amount under the court's order
  3. 3 How interest should be calculated on the escrowed Euro sum if it had been held in Euros rather than converted to sterling

Ratio Decidendi

The Appellants were entitled to the sterling equivalent of €1,662,500 as at the date of payment, not the lesser sum resulting from earlier conversion. Dorseys, as escrow agents, were bound to pay the correct amount and had no basis for unilateral conversion without the Appellants' agreement. The correct amount of interest is to be determined as if the funds had remained in Euros, with any factual dispute referred to a Master.

Court Disposition

Application granted in part; declarations made; issue of interest calculation referred to 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) plus interest by 15 July 2008.