CJ Motorsport Consulting Ltd v Bird & Anor [2019] EWHC 2330 (QB) (03 September 2019)

CJ Motorsport Consulting Ltd v Bird & Anor [2019] EWHC 2330 (QB) (03 September 2019)

The 2016 Management Contract is unenforceable as an unreasonable restraint of trade because it imposes substantial and unilateral obligations on Mr Bird over an 18-year term without corresponding obligations on CJ Motorsport, and CJ Motorsport has no real prospect of justifying the restraint. The quantum meruit claim fails as there is no pleaded failure to pay agreed commission and no total failure of basis for restitution of historic investments.

Citation
[2019] EWHC 2330 (QB)
Parties
Claimant: CJ Motorsport Consulting Limited; First Defendant: Sam Bird; Second Defendant: Sam Bird Enterprises Limited
Jurisdiction
England and Wales
Judgment Date
03 September 2019
Procedural Posture
Commercial Contract Dispute / Application for Strike Out And/or Summary Judgment
Outcome
Claim for damages for repudiation of the 2016 Management Contract dismissed; summary judgment granted for the first defendant; quantum meruit claim dismissed.
Legal Topics
Restraint of Trade, Management Contracts, Quantum Meruit, Summary Judgment, Strike Out Applications
Contract Law Sports Law Restraint of Trade Management Contracts Quantum Meruit Summary Judgment Strike Out Applications

Case Brief

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Parties

CJ Motorsport Consulting Limited

Claimant

Sam Bird

First Defendant

Sam Bird Enterprises Limited

Second Defendant

Procedural Posture

Commercial Contract Dispute / Application for Strike Out And/or Summary Judgment

Legal Issues

  1. 1 Whether the 2016 Management Contract is unenforceable as an unreasonable restraint of trade
  2. 2 Whether the claimant has a real prospect of success on its claim for damages for repudiation of the 2016 Management Contract
  3. 3 Whether the claimant is entitled to restitution (quantum meruit) for services and investment

Ratio Decidendi

The 2016 Management Contract is unenforceable as an unreasonable restraint of trade because it imposes substantial and unilateral obligations on Mr Bird over an 18-year term without corresponding obligations on CJ Motorsport, and CJ Motorsport has no real prospect of justifying the restraint. The quantum meruit claim fails as there is no pleaded failure to pay agreed commission and no total failure of basis for restitution of historic investments.

Court Disposition

Claim for damages for repudiation of the 2016 Management Contract dismissed; summary judgment granted for the first defendant; quantum meruit claim dismissed.

Orders

  • Summary judgment in favour of the first defendant on the claim for damages for repudiation of the 2016 Management Contract.
  • Quantum meruit claim dismissed.