Leofelis SA & Anor v Lonsdale Sports Ltd & Ors [2008] EWCA Civ 640 (01 July 2008)

Leofelis SA & Anor v Lonsdale Sports Ltd & Ors [2008] EWCA Civ 640 (01 July 2008)

The Court of Appeal held that the defendants were not entitled to terminate the November 2002 Agreement for breach of contract or change of control due to waiver and affirmation by their conduct, including acceptance of royalties and requiring performance of contractual obligations after the alleged breaches. The representations and warranties regarding the Alavi Licence were found to be false and breached, entitling the claimants to damages. Leeside was held to be an authorised sub-licensee for the extended territory due to waiver by the defendants. The defendants' appeals were dismissed on all substantive points.

Citation
[2008] EWCA Civ 640
Parties
Claimant Respondent: Leofelis SA; Claimant Respondent: Leeside SRL; Defendant Appellant: Lonsdale Sports Ltd; Defendant Appellant: The Trade Mark Licensing Co Ltd; Defendant Appellant: Sports World International Ltd
Jurisdiction
England and Wales
Judgment Date
01 July 2008
Procedural Posture
Appeal (civil) / Court of Appeal Judgment Following High Court Trial on Liability
Outcome
Appeals dismissed; judgment for claimants/respondents upheld
Legal Topics
Trade Mark Licensing, Breach of Contract, Misrepresentation, Waiver, Sub Licensing, Termination of Contract

Case Brief

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Parties

Leofelis SA

Claimant Respondent

Leeside SRL

Claimant Respondent

Lonsdale Sports Ltd

Defendant Appellant

The Trade Mark Licensing Co Ltd

Defendant Appellant

Sports World International Ltd

Defendant Appellant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment Following High Court Trial on Liability

  1. 1 Whether the defendants validly terminated the trade mark licence agreement for breach or change of control
  2. 2 Whether the claimants were entitled to damages for misrepresentation and breach of warranty
  3. 3 Whether the rights granted to Mr Alavi under clause 5A of the Lord John SPA were inconsistent with representations or warranties

Ratio Decidendi

The Court of Appeal held that the defendants were not entitled to terminate the November 2002 Agreement for breach of contract or change of control due to waiver and affirmation by their conduct, including acceptance of royalties and requiring performance of contractual obligations after the alleged breaches. The representations and warranties regarding the Alavi Licence were found to be false and breached, entitling the claimants to damages. Leeside was held to be an authorised sub-licensee for the extended territory due to waiver by the defendants. The defendants' appeals were dismissed on all substantive points.

Court Disposition

Appeals dismissed; judgment for claimants/respondents upheld

Orders

  • Damages to be assessed for misrepresentation and breach of contract
  • Injunctions restraining further infringing sales by defendants