IB4AI Llc v Auriel Capital [2008] EWHC 1571 (Ch) (23 June 2008)

IB4AI Llc v Auriel Capital [2008] EWHC 1571 (Ch) (23 June 2008)

The expression 'total base fees' in clause 7.2 of the Marketing Agreement means all management fees paid by relevant investors less any rebates paid; therefore, IB4AI LLC did not meet the target and Auriel Capital lawfully terminated the agreement early.

Citation
[2008] EWHC 1571 (Ch)
Parties
Claimant/respondent: IB4AI LLC; Defendant/appellant: AURIEL CAPITAL
Jurisdiction
England and Wales
Judgment Date
23 June 2008
Procedural Posture
Commercial Contract Dispute / Trial of Preliminary Issue
Outcome
Claim dismissed; judgment for defendant on construction issue.
Legal Topics
Interpretation of Contract Terms, Marketing Agreements, Fee Calculation, Hedge Fund Management
Contract Law Commercial Law Interpretation of Contract Terms Marketing Agreements Fee Calculation Hedge Fund Management

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

IB4AI LLC

Claimant/respondent

AURIEL CAPITAL

Defendant/appellant

Procedural Posture

Commercial Contract Dispute / Trial of Preliminary Issue

Legal Issues

  1. 1 Proper construction of clause 7.2 of the Marketing Agreement
  2. 2 Whether 'total base fees' are net of rebates

Ratio Decidendi

The expression 'total base fees' in clause 7.2 of the Marketing Agreement means all management fees paid by relevant investors less any rebates paid; therefore, IB4AI LLC did not meet the target and Auriel Capital lawfully terminated the agreement early.

Court Disposition

Claim dismissed; judgment for defendant on construction issue.

Orders

  • Costs of hearing before Master Moncaster to be costs in the case, forming part of defendant's costs.
  • Defendant's costs assessed at £58,935 with interest at base plus 1% from invoice payment date until 8 July.