Makdessi v Cavendish Square Holding BV & Ors [2017] EWHC 650 (Comm) (30 March 2017)

Makdessi v Cavendish Square Holding BV & Ors [2017] EWHC 650 (Comm) (30 March 2017)

The claimant met the threshold for an interim payment as the court was satisfied on the balance of probabilities that, if the claim went to trial, the claimant would obtain judgment for a substantial sum. However, due to uncertainties regarding deductions for costs and possible further wrongdoing, the court could not fix the precise sum but determined that US$3m was a reasonable proportion for an interim payment.

Citation
[2017] EWHC 650 (Comm)
Parties
Claimant: Talal El Makdessi; First Defendant: Cavendish Square Holding BV; Second Defendant: WPP 2005 Limited; Third Defendant: Team Y&R Holdings Hong Kong Limited
Jurisdiction
England and Wales
Judgment Date
30 March 2017
Procedural Posture
Commercial Court Application / Interim Payment Application Under CPR 25.7
Outcome
Application granted in part
Legal Topics
Interim Payments, Penalties in Contracts, Share Purchase Options, Assessment of Damages
Contract Law Civil Procedure Interim Payments Penalties in Contracts Share Purchase Options Assessment of Damages

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Parties

Talal El Makdessi

Claimant

Cavendish Square Holding BV

First Defendant

WPP 2005 Limited

Second Defendant

Team Y&R Holdings Hong Kong Limited

Third Defendant

Procedural Posture

Commercial Court Application / Interim Payment Application Under CPR 25.7

Legal Issues

  1. 1 Whether the claimant is entitled to an interim payment under CPR 25.7
  2. 2 Whether the threshold for an interim payment (that the claimant would obtain judgment for a substantial sum) is met
  3. 3 Assessment of the likely amount of final judgment

Ratio Decidendi

The claimant met the threshold for an interim payment as the court was satisfied on the balance of probabilities that, if the claim went to trial, the claimant would obtain judgment for a substantial sum. However, due to uncertainties regarding deductions for costs and possible further wrongdoing, the court could not fix the precise sum but determined that US$3m was a reasonable proportion for an interim payment.

Court Disposition

Application granted in part

Orders

  • First Defendant to make an interim payment of US$3,000,000 to the Claimant, conditional on transfer of shares as compliant with Stamp Duty requirements.