Household Global Funding Inc & Ors v British Gas Trading & Ors [2001] EWCA Civ 1156 (13 July 2001)

Household Global Funding Inc & Ors v British Gas Trading & Ors [2001] EWCA Civ 1156 (13 July 2001)

The Court of Appeal held that the judge at first instance (Hart J) had overestimated the damage to HFC from a short delay and had not given sufficient weight to the open offer made by British Gas to preserve the status quo. The balance of convenience favoured granting an injunction to preserve the goodwill and value of the business pending appeal, as catastrophic damage would only occur if cardholders were left without a usable card, which could be avoided by accepting the open offer.

Citation
[2001] EWCA Civ 1156
Parties
Claimant/respondent: Household Global Funding Inc; Claimant/respondent: HFC Bank PLC; Claimant/respondent: Household International (UK) Limited; Defendant/appellant: British Gas Trading; Defendant/appellant: GB Gas Holdings Limited; Defendant/appellant: Goldbrand Development Limited
Jurisdiction
England and Wales
Judgment Date
13 July 2001
Procedural Posture
Civil Appeal / Application for Permission to Appeal and Substantive Appeal
Outcome
Permission to appeal granted; appeal allowed; injunction granted until conclusion of forthcoming appeal.
Legal Topics
Interim Injunctions, Specific Performance, Interpretation of Commercial Agreements, Receivables Purchase Agreement, Joint Venture Termination
Commercial Law Contract Law Interim Injunctions Specific Performance Interpretation of Commercial Agreements Receivables Purchase Agreement Joint Venture Termination

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Parties

Household Global Funding Inc

Claimant/respondent

HFC Bank PLC

Claimant/respondent

Household International (UK) Limited

Claimant/respondent

British Gas Trading

Defendant/appellant

GB Gas Holdings Limited

Defendant/appellant

Goldbrand Development Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Application for Permission to Appeal and Substantive Appeal

Legal Issues

  1. 1 Whether an interim injunction should be granted restraining HFC from communicating with Goldfish cardholders pending appeal
  2. 2 Proper construction of the Receivables Purchase Agreement (RPA) and whether it entitles British Gas to acquire the business as a going concern or only the receivables
  3. 3 Appropriate relief pending determination of the substantive appeal

Ratio Decidendi

The Court of Appeal held that the judge at first instance (Hart J) had overestimated the damage to HFC from a short delay and had not given sufficient weight to the open offer made by British Gas to preserve the status quo. The balance of convenience favoured granting an injunction to preserve the goodwill and value of the business pending appeal, as catastrophic damage would only occur if cardholders were left without a usable card, which could be avoided by accepting the open offer.

Court Disposition

Permission to appeal granted; appeal allowed; injunction granted until conclusion of forthcoming appeal.

Orders

  • Permission to appeal granted.
  • Appeal allowed.