Meretz Investments NV v ACP Ltd. [2002] EWHC 1019 (QB) (27 May 2002)

Meretz Investments NV v ACP Ltd. [2002] EWHC 1019 (QB) (27 May 2002)

ACP failed to prove it was unable to secure finance on reasonable and proper normal commercial terms as of 26 October 2001; therefore, the condition for deferral of payment to Meretz was not satisfied. ACP is entitled to deduct professional fees from any sum due to Meretz, not limited to clause 6(c) sums.

Citation
[2002] EWHC 1019 (QB)
Parties
Claimant: Meretz Investments NV; Defendant: ACP Limited
Jurisdiction
England and Wales
Judgment Date
27 May 2002
Procedural Posture
Commercial Contract Dispute / Judgment After Trial
Outcome
Judgment for Claimant
Legal Topics
Construction of Contract, Entitlement to Commission, Deferral of Payment, Reasonableness of Satisfaction, Deduction of Professional Fees
Contract Law Commercial Law Construction of Contract Entitlement to Commission Deferral of Payment Reasonableness of Satisfaction Deduction of Professional Fees

Case Brief

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Parties

Meretz Investments NV

Claimant

ACP Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether ACP was unable to secure finance on reasonable and proper normal commercial terms to complete construction of fourth and fifth penthouses if payment to Meretz was made
  2. 2 Whether ACP demonstrated to the reasonable satisfaction of Meretz and Highdorn that all five penthouses would be built within a reasonable timescale
  3. 3 Whether ACP is entitled to deduct professional fees paid to Britel's advisers from sums due to Meretz

Ratio Decidendi

ACP failed to prove it was unable to secure finance on reasonable and proper normal commercial terms as of 26 October 2001; therefore, the condition for deferral of payment to Meretz was not satisfied. ACP is entitled to deduct professional fees from any sum due to Meretz, not limited to clause 6(c) sums.

Court Disposition

Judgment for Claimant

Orders

  • ACP to pay Meretz Investments NV the sum of £373,000 less allowable deductions of £46,472.45 for professional fees