Tandrin Aviation Holdings Ltd v Aero Toy Store Llc & Anor [2010] EWHC 40 (Comm) (19 January 2010)

Tandrin Aviation Holdings Ltd v Aero Toy Store Llc & Anor [2010] EWHC 40 (Comm) (19 January 2010)

The deposit clause is not a penalty but a genuine pre-estimate of loss, force majeure does not cover economic downturn, English court is proper jurisdiction, ATS's defences have no real prospect of success, and Tandrin is entitled to the relief sought including declarations, orders for instructions and payment, damages, and costs.

Citation
[2010] EWHC 40 (Comm)
Parties
Claimant: Tandrin Aviation Holdings Limited; First Defendant: Aero Toy Store LLC; Second Defendant: Insured Aircraft Title Service, Inc.
Jurisdiction
England and Wales
Judgment Date
19 January 2010
Procedural Posture
Commercial Contract Dispute / Summary Judgment Application
Outcome
Summary judgment granted for claimant; judgment in default against second defendant.
Legal Topics
Liquidated Damages, Penalty Clauses, Force Majeure, Jurisdiction, Specific Performance, Escrow Arrangements
Contract Law Commercial Law Liquidated Damages Penalty Clauses Force Majeure Jurisdiction Specific Performance Escrow Arrangements

Case Brief

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Parties

Tandrin Aviation Holdings Limited

Claimant

Aero Toy Store LLC

First Defendant

Insured Aircraft Title Service, Inc.

Second Defendant

Procedural Posture

Commercial Contract Dispute / Summary Judgment Application

Legal Issues

  1. 1 Whether the liquidated damages clause is a penalty and unenforceable
  2. 2 Whether the English court is an appropriate jurisdiction for specific performance
  3. 3 Whether force majeure applies to excuse ATS's non-performance

Ratio Decidendi

The deposit clause is not a penalty but a genuine pre-estimate of loss, force majeure does not cover economic downturn, English court is proper jurisdiction, ATS's defences have no real prospect of success, and Tandrin is entitled to the relief sought including declarations, orders for instructions and payment, damages, and costs.

Court Disposition

Summary judgment granted for claimant; judgment in default against second defendant.

Orders

  • Declarations regarding termination and entitlement to deposit
  • Order that ATS instruct D2 to pay deposit to Tandrin