Tele2 International Card Company SA & Ors v Post Office Ltd [2008] EWHC 158 (QB) (25 February 2008)

Tele2 International Card Company SA & Ors v Post Office Ltd [2008] EWHC 158 (QB) (25 February 2008)

The Post Office was entitled to terminate the Agreement under clause 11.4.1 due to the claimants' failure to provide Parent Company Letters, which was a breach incapable of remedy. There was no novation or assignment of the Agreement to C3 (UK); Tele2 Ireland remained the only claimant with standing to claim damages. Clause 16 of the Agreement precluded any waiver or affirmation by conduct, so the Post Office did not lose its right to terminate by continued performance. The claim for damages by C3 (UK) failed, and only Tele2 Ireland could, in principle, recover damages subject to proof of loss.

Citation
[2008] EWHC 158 (QB)
Parties
Claimant: Tele2 International Card Company SA; Claimant: Kub 2 Technology Limited (formerly known as C3 Calling Card Company (Ireland) Limited); Claimant: Kub 7 Technology Limited (formerly known as Calling Card Company (UK) Limited); Defendant/part 20 Claimant: Post Office Limited
Jurisdiction
England and Wales
Judgment Date
25 February 2008
Procedural Posture
Commercial Contract Dispute / High Court Trial Judgment
Outcome
Claim dismissed in respect of C3 (UK) and Tele2 International; only Tele2 Ireland has standing to claim damages, subject to proof of loss. The Post Office validly terminated the Agreement.
Legal Topics
Termination of Contract, Breach of Contract, Novation, Damages, Waiver and Affirmation, Assignment of Contractual Rights
Contract Law Commercial Law Termination of Contract Breach of Contract Novation Damages Waiver and Affirmation Assignment of Contractual Rights

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Parties

Tele2 International Card Company SA

Claimant

Kub 2 Technology Limited (formerly known as C3 Calling Card Company (Ireland) Limited)

Claimant

Kub 7 Technology Limited (formerly known as Calling Card Company (UK) Limited)

Claimant

Post Office Limited

Defendant/part 20 Claimant

Procedural Posture

Commercial Contract Dispute / High Court Trial Judgment

Legal Issues

  1. 1 Whether the Post Office validly terminated the Agreement for failure to provide Parent Company Letters
  2. 2 Whether there was a novation or assignment of the Agreement from Tele2 Ireland to C3 (UK)
  3. 3 Whether Tele2 Ireland or C3 (UK) was entitled to claim damages

Ratio Decidendi

The Post Office was entitled to terminate the Agreement under clause 11.4.1 due to the claimants' failure to provide Parent Company Letters, which was a breach incapable of remedy. There was no novation or assignment of the Agreement to C3 (UK); Tele2 Ireland remained the only claimant with standing to claim damages. Clause 16 of the Agreement precluded any waiver or affirmation by conduct, so the Post Office did not lose its right to terminate by continued performance. The claim for damages by C3 (UK) failed, and only Tele2 Ireland could, in principle, recover damages subject to proof of loss.

Court Disposition

Claim dismissed in respect of C3 (UK) and Tele2 International; only Tele2 Ireland has standing to claim damages, subject to proof of loss. The Post Office validly terminated the Agreement.

Orders

  • Claim by C3 (UK) dismissed
  • Claim by Tele2 International dismissed