Azzurri Communications Ltd v International Telecommunications Equipment Ltd (t/a SOS Communications) [2013] EWPCC 17 (28 March 2013)

Azzurri Communications Ltd v International Telecommunications Equipment Ltd (t/a SOS Communications) [2013] EWPCC 17 (28 March 2013)

SOS breached the contract by supplying infringing goods, violating the implied terms of right to sell and quiet possession under the Sale of Goods Act 1979. Azzurri's delivery up of the handsets to Avaya was reasonable mitigation in response to a properly arguable claim for trade mark infringement. Azzurri is entitled to recover the full cost of replacement handsets and damages for staff time spent on replacement, but not for investigation, logistics, courier, or hotel costs due to insufficient evidence of significant disruption or proof of those losses.

Citation
[2013] EWPCC 17
Parties
Claimant: Azzurri Communications Limited; Defendant/part 20 Claimant: International Telecommunications Equipment Limited T/A SOS Communications; Part 20 Defendant: Fonesys Communications Inc
Jurisdiction
England and Wales
Judgment Date
28 March 2013
Procedural Posture
Breach of Contract and Misrepresentation (with Part 20 Claim) / Judgment After Trial
Outcome
Judgment for the claimant (Azzurri) against the defendant (SOS); Part 20 claim against Fonesys admitted by default.
Legal Topics
Sale of Goods, Implied Terms, Trade Mark Infringement, Mitigation of Loss, Damages, Delivery Up
Contract Law Intellectual Property Law Commercial Law Sale of Goods Implied Terms Trade Mark Infringement Mitigation of Loss Damages +1 more

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Parties

Azzurri Communications Limited

Claimant

International Telecommunications Equipment Limited T/A SOS Communications

Defendant/part 20 Claimant

Fonesys Communications Inc

Part 20 Defendant

Procedural Posture

Breach of Contract and Misrepresentation (with Part 20 Claim) / Judgment After Trial

Legal Issues

  1. 1 What were the material provisions of the contract between Azzurri and SOS?
  2. 2 Were there operating failures with the handsets and how widespread/severe were they?
  3. 3 Did the importation and supply of handsets infringe Avaya's trade marks?

Ratio Decidendi

SOS breached the contract by supplying infringing goods, violating the implied terms of right to sell and quiet possession under the Sale of Goods Act 1979. Azzurri's delivery up of the handsets to Avaya was reasonable mitigation in response to a properly arguable claim for trade mark infringement. Azzurri is entitled to recover the full cost of replacement handsets and damages for staff time spent on replacement, but not for investigation, logistics, courier, or hotel costs due to insufficient evidence of significant disruption or proof of those losses.

Court Disposition

Judgment for the claimant (Azzurri) against the defendant (SOS); Part 20 claim against Fonesys admitted by default.

Orders

  • SOS to pay Azzurri £196,502.34 for replacement handsets as damages.
  • SOS to pay Azzurri £49,081.83 for staff time spent on replacement.