W H Smith Travel Holdings Ltd v Twentieth Century Fox Home Entertainment Ltd [2015] EWCA Civ 1188 (26 November 2015)

W H Smith Travel Holdings Ltd v Twentieth Century Fox Home Entertainment Ltd [2015] EWCA Civ 1188 (26 November 2015)

The parties did not operate a true running account; instead, they maintained independent ledgers and settled transactions individually. The burden of proof lay initially on W H Smith to show a debt was due, but once the existence of valid credits was admitted, Fox bore the evidential burden to prove those credits had been properly off-set against debts. Fox failed to establish this, so W H Smith was entitled to judgment.

Citation
[2015] EWCA Civ 1188
Parties
Claimant/respondent: W H Smith Travel Holdings Ltd; Defendant/appellant: Twentieth Century Fox Home Entertainment Ltd
Jurisdiction
England and Wales
Judgment Date
26 November 2015
Procedural Posture
Civil Appeal / Appeal From Queen's Bench Division, Bristol District Registry, High Court
Outcome
Appeal dismissed
Legal Topics
Running Accounts, Burden of Proof, Set Off, Sale or Return Agreements, Accounting Reconciliation
Commercial Law Contract Law Running Accounts Burden of Proof Set Off Sale or Return Agreements Accounting Reconciliation

Case Brief

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Parties

W H Smith Travel Holdings Ltd

Claimant/respondent

Twentieth Century Fox Home Entertainment Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Queen's Bench Division, Bristol District Registry, High Court

Legal Issues

  1. 1 Whether the transactions between the parties were recorded in a running account
  2. 2 Which party bore the burden of proof regarding the set-off of credit notes against receivables
  3. 3 Whether Fox established that credit notes had been properly off-set against debts owed by W H Smith

Ratio Decidendi

The parties did not operate a true running account; instead, they maintained independent ledgers and settled transactions individually. The burden of proof lay initially on W H Smith to show a debt was due, but once the existence of valid credits was admitted, Fox bore the evidential burden to prove those credits had been properly off-set against debts. Fox failed to establish this, so W H Smith was entitled to judgment.

Court Disposition

Appeal dismissed

Orders

  • Judgment for W H Smith Travel Holdings Ltd in the sum of £1,215,000
  • Fox's appeal is dismissed