Parham v F Parham Ltd. & Anor

Parham v F Parham Ltd. & Anor

Clause 7 of the agreement provides a clear default mechanism: in the absence of agreement, the salary is to be calculated by compounding a 10% annual increase on the original 1973 salary of £10,000. The clause does not permit the default salary to be based on the last agreed salary. The judge’s construction is correct and does not flout business common sense.

Parties
Claimant/respondent: Eric Ronald Parham; Defendant/appellant: F Parham Ltd; Former Employer/not Party to Appeal: Autoyachts Limited
Jurisdiction
England and Wales
Judgment Date
16 February 2006
Procedural Posture
Civil Appeal / Appeal From High Court (queen’s Bench Division)
Outcome
Appeal dismissed
Legal Topics
Interpretation of Employment Contracts, Calculation of Damages for Breach of Contract
Contract Law Employment Law Interpretation of Employment Contracts Calculation of Damages for Breach of Contract

Case Brief

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Parties

Eric Ronald Parham

Claimant/respondent

F Parham Ltd

Defendant/appellant

Autoyachts Limited

Former Employer/not Party to Appeal

Procedural Posture

Civil Appeal / Appeal From High Court (queen’s Bench Division)

Legal Issues

  1. 1 Proper construction of Clause 7 of the 1973 agreement regarding salary calculation in default of agreement
  2. 2 Whether the default salary should be calculated on a compounded basis from 1973 or by reference to the last agreed salary

Ratio Decidendi

Clause 7 of the agreement provides a clear default mechanism: in the absence of agreement, the salary is to be calculated by compounding a 10% annual increase on the original 1973 salary of £10,000. The clause does not permit the default salary to be based on the last agreed salary. The judge’s construction is correct and does not flout business common sense.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.