Tandrin Aviation Holdings Ltd v Aero Toy Store Llc & Anor

Tandrin Aviation Holdings Ltd v Aero Toy Store Llc & Anor

The liquidated damages clause is not a penalty as it is a genuine pre-estimate of loss, the force majeure clause does not cover economic downturn, the English court is the appropriate forum, and there is no triable defence. Tandrin is entitled to the relief sought, including orders for ATS to instruct D2 to pay the deposit, damages for delay, and costs.

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 the claimant against both defendants.
Legal Topics
Liquidated Damages, Penalty Clauses, Force Majeure, Jurisdiction, Specific Performance, Summary Judgment
Contract Law Commercial Law Liquidated Damages Penalty Clauses Force Majeure Jurisdiction Specific Performance Summary Judgment

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 an unenforceable penalty
  2. 2 Whether the force majeure clause excuses performance due to economic downturn
  3. 3 Whether the English court is the appropriate forum for specific performance against foreign defendants

Ratio Decidendi

The liquidated damages clause is not a penalty as it is a genuine pre-estimate of loss, the force majeure clause does not cover economic downturn, the English court is the appropriate forum, and there is no triable defence. Tandrin is entitled to the relief sought, including orders for ATS to instruct D2 to pay the deposit, damages for delay, and costs.

Court Disposition

Summary judgment granted for the claimant against both defendants.

Orders

  • Declarations as to termination of the Agreement and entitlement to the deposit granted.
  • ATS ordered to instruct D2 to pay the deposit to Tandrin.