Parkingeye Ltd v Somerfield Stores Ltd

Parkingeye Ltd v Somerfield Stores Ltd

The contract was not unenforceable for illegality because the intention to use unlawful means was provisional, not central to the contract, and would have been changed if Somerfield had objected; the illegality was incidental and not sufficient to justify denying ParkingEye's claim for damages.

Parties
Claimant/respondent: ParkingEye Limited; Defendant/appellant: Somerfield Stores Limited
Jurisdiction
England and Wales
Judgment Date
17 October 2012
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Illegality Defence, Contractual Performance, Tort of Deceit, Repudiatory Breach, Remedies for Breach of Contract

Case Brief

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Parties

ParkingEye Limited

Claimant/respondent

Somerfield Stores Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

  1. 1 Whether Somerfield can rely on illegality as a complete defence to ParkingEye's claim for damages
  2. 2 Whether the contract was unenforceable due to intended unlawful performance
  3. 3 Centrality and gravity of the alleged illegality in the context of the contract

Ratio Decidendi

The contract was not unenforceable for illegality because the intention to use unlawful means was provisional, not central to the contract, and would have been changed if Somerfield had objected; the illegality was incidental and not sufficient to justify denying ParkingEye's claim for damages.

Court Disposition

Appeal dismissed

Orders

  • Somerfield's illegality defence rejected
  • ParkingEye's claim for damages upheld