The Codemasters Software Company Ltd v Automobile Club De L'ouest

The Codemasters Software Company Ltd v Automobile Club De L'ouest

ACO's proposed amendments and expert evidence are only relevant and admissible to the limited extent that they relate to the construction of the indemnity clause and the reasonableness of the settlement/licence fee, not to mitigation. The law does not permit a mitigation defence to a claim under an indemnity. Expert evidence is allowed only on the limited issue of likely loss of profit and the reasonableness of the licence fee as at April 2008, but not on the conduct of negotiations or the cost of amending promotional materials.

Parties
Claimant/part 20 Defendant: The Codemasters Software Company Limited; Defendant/part 20 Claimant: Automobile Club de l'Ouest
Jurisdiction
England and Wales
Judgment Date
25 November 2009
Procedural Posture
Intellectual Property / Interlocutory Application Regarding Admissibility of Expert Evidence and Amendments to Defence and Counterclaim
Outcome
Application allowed in part
Legal Topics
Indemnity, Mitigation of Loss, Damages, Expert Evidence, Construction of Contract
Contract Law Intellectual Property Indemnity Mitigation of Loss Damages Expert Evidence Construction of Contract

Case Brief

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Parties

The Codemasters Software Company Limited

Claimant/part 20 Defendant

Automobile Club de l'Ouest

Defendant/part 20 Claimant

Procedural Posture

Intellectual Property / Interlocutory Application Regarding Admissibility of Expert Evidence and Amendments to Defence and Counterclaim

Legal Issues

  1. 1 Whether ACO can adduce further expert evidence on licensing and sales of video games
  2. 2 Whether amendments to Defence and Counterclaim should be allowed
  3. 3 Whether mitigation, remoteness, or causation principles apply to indemnity under the contract

Ratio Decidendi

ACO's proposed amendments and expert evidence are only relevant and admissible to the limited extent that they relate to the construction of the indemnity clause and the reasonableness of the settlement/licence fee, not to mitigation. The law does not permit a mitigation defence to a claim under an indemnity. Expert evidence is allowed only on the limited issue of likely loss of profit and the reasonableness of the licence fee as at April 2008, but not on the conduct of negotiations or the cost of amending promotional materials.

Court Disposition

Application allowed in part

Orders

  • ACO permitted to amend Defence and Counterclaim to raise construction points
  • ACO permitted to adduce limited expert evidence as described in the judgment