Donovan & Anor v Grainmarket Asset Management LLP [2021] EWCA Civ 686 (12 May 2021)

Donovan & Anor v Grainmarket Asset Management LLP [2021] EWCA Civ 686 (12 May 2021)

The right to a share of performance fees under the joint venture agreement was not conditional on Mr Donovan's performance of his obligations; there was no repudiation or renunciation by Mr Donovan, and the joint venture agreement was not terminated by accepted repudiation. Accordingly, Mr Donovan and Naled were entitled to their respective shares of performance fees and fee exemptions. Interest was properly awarded under the Late Payment of Commercial Debts (Interest) Act 1998.

Citation
[2021] EWCA Civ 686
Parties
Respondent/claimant: Daniel Donovan; Respondent/claimant: Naled Limited; Appellant/defendant: Grainmarket Asset Management LLP
Jurisdiction
England and Wales
Judgment Date
12 May 2021
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Joint Venture Agreements, Repudiation, Conditionality of Payment, Quantum Meruit, Interest on Commercial Debts
Contract Law Commercial Law Joint Venture Agreements Repudiation Conditionality of Payment Quantum Meruit Interest on Commercial Debts

Case Brief

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Parties

Daniel Donovan

Respondent/claimant

Naled Limited

Respondent/claimant

Grainmarket Asset Management LLP

Appellant/defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether Mr Donovan's right to performance fees was conditional on performance of his obligations under the joint venture agreement
  2. 2 Whether Mr Donovan repudiated the joint venture agreement
  3. 3 Whether the joint venture agreement was terminated and the effect on rights to payment

Ratio Decidendi

The right to a share of performance fees under the joint venture agreement was not conditional on Mr Donovan's performance of his obligations; there was no repudiation or renunciation by Mr Donovan, and the joint venture agreement was not terminated by accepted repudiation. Accordingly, Mr Donovan and Naled were entitled to their respective shares of performance fees and fee exemptions. Interest was properly awarded under the Late Payment of Commercial Debts (Interest) Act 1998.

Court Disposition

Appeal dismissed

Orders

  • Defendant's appeal dismissed
  • Defendant to pay Claimants' costs of the appeal, to be assessed if not agreed