Crucial Music Corporation & Anor v Klondyke Management AG & Ors

Crucial Music Corporation & Anor v Klondyke Management AG & Ors

There is a good arguable case that the place of performance of the warranties was London, where the agreement was executed and the transfer of assets occurred. For the misrepresentation claim, the loss was suffered in London when the claimants entered into the agreement and paid the price. Therefore, the English court has jurisdiction under both Article 5(1) and 5(3) of the Lugano Convention and Judgments Regulation.

Parties
Claimant / Respondent: Crucial Music Corporation (formerly known as Onemusic Corporation); Claimant / Respondent: Point Classics LLC; Defendant / Appellant: Premstroy Enterprises Limited; Defendant / Appellant: Klondyke Management AG (formerly known as Point Classics AG); Defendant / Appellant: Klondyke Verwaltungs und Beteiligungsgesellschaft AG; Defendant / Appellant: Wilhelm Mittrich; Defendant / Appellant: ODS Optical Disc Service GmbH
Jurisdiction
England and Wales
Judgment Date
25 July 2007
Procedural Posture
Civil Appeal / Appeal From Decision of Master Moncaster on Jurisdiction
Outcome
Appeal dismissed
Legal Topics
Jurisdiction Under Lugano Convention, Jurisdiction Under Judgments Regulation, Breach of Contract, Misrepresentation, Intellectual Property Warranties
Private International Law Contract Law Tort Law Jurisdiction Under Lugano Convention Jurisdiction Under Judgments Regulation Breach of Contract Misrepresentation Intellectual Property Warranties

Case Brief

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Parties

Crucial Music Corporation (formerly known as Onemusic Corporation)

Claimant / Respondent

Point Classics LLC

Claimant / Respondent

Premstroy Enterprises Limited

Defendant / Appellant

Klondyke Management AG (formerly known as Point Classics AG)

Defendant / Appellant

Klondyke Verwaltungs und Beteiligungsgesellschaft AG

Defendant / Appellant

Wilhelm Mittrich

Defendant / Appellant

ODS Optical Disc Service GmbH

Defendant / Appellant

Procedural Posture

Civil Appeal / Appeal From Decision of Master Moncaster on Jurisdiction

Legal Issues

  1. 1 Whether a warranty given by a third party as to the nature of intellectual property rights has a place of performance within Article 5(1) of the Lugano Convention and Judgments Regulation
  2. 2 Whether the place where damage was sustained as a result of misrepresentation is the place where the contract was executed and/or completed under Article 5(3) of the Conventions

Ratio Decidendi

There is a good arguable case that the place of performance of the warranties was London, where the agreement was executed and the transfer of assets occurred. For the misrepresentation claim, the loss was suffered in London when the claimants entered into the agreement and paid the price. Therefore, the English court has jurisdiction under both Article 5(1) and 5(3) of the Lugano Convention and Judgments Regulation.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed with costs.