Northern & Shell Plc v Champion Children Of The Year Awards Ltd [2001] EWCA Civ 1638 (26 October 2001)

Northern & Shell Plc v Champion Children Of The Year Awards Ltd [2001] EWCA Civ 1638 (26 October 2001)

It was not reasonable for OK! to invoke clause 6 to demand repayment of sponsorship monies solely because the broadcast slot was not at peak time or the viewing figures were disappointing, given the overall benefits received and the absence of any contractual guarantee of audience size or specific slot. Clause 6 must be applied in the context of the agreement as a whole, and OK!'s exercise of discretion was not objectively reasonable.

Citation
[2001] EWCA Civ 1638
Parties
Claimant/respondent: Northern & Shell PLC; Defendant/appellant: Champion Children of the Year Awards Ltd
Jurisdiction
England and Wales
Judgment Date
26 October 2001
Procedural Posture
Civil Appeal / Appeal From Queen's Bench Division, High Court
Outcome
Appeal allowed. Judgment for defendant/appellant on claim and counterclaim.
Legal Topics
Sponsorship Agreements, Interpretation of Contractual Terms, Repudiatory Breach, Reasonableness Standard
Contract Law Commercial Law Sponsorship Agreements Interpretation of Contractual Terms Repudiatory Breach Reasonableness Standard

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Parties

Northern & Shell PLC

Claimant/respondent

Champion Children of the Year Awards Ltd

Defendant/appellant

Procedural Posture

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

Legal Issues

  1. 1 Whether OK! was entitled to repayment of sponsorship monies under clause 6 of the agreement based on the time and date of the broadcast
  2. 2 Whether the exercise of discretion by OK! to object to the broadcast slot was reasonable in the context of the agreement

Ratio Decidendi

It was not reasonable for OK! to invoke clause 6 to demand repayment of sponsorship monies solely because the broadcast slot was not at peak time or the viewing figures were disappointing, given the overall benefits received and the absence of any contractual guarantee of audience size or specific slot. Clause 6 must be applied in the context of the agreement as a whole, and OK!'s exercise of discretion was not objectively reasonable.

Court Disposition

Appeal allowed. Judgment for defendant/appellant on claim and counterclaim.

Orders

  • Judgment for Champion Children of the Year Awards Ltd on the claim and counterclaim.
  • Defendant to have its costs of the appeal and in the court below.