Sawyer v Atari Interactive Inc

Sawyer v Atari Interactive Inc

The counterclaim for restitution was properly struck out as there was no pleaded or evidential basis for a mistake; however, the defence of set-off and related amendments regarding industry practice should proceed to trial as issues of contractual construction and quantum remain live. Amendments regarding the Thrills Game and inducement to breach of contract should be allowed to proceed, subject to further developments in the law.

Parties
Respondent: Chris Sawyer; Appellant: Atari Interactive, Inc
Jurisdiction
England and Wales
Judgment Date
02 March 2007
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal allowed in part, appeal dismissed in part
Legal Topics
Breach of Contract, Restitution, Set Off, Copyright, Licensing, Inducement to Breach of Contract

Case Brief

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Parties

Chris Sawyer

Respondent

Atari Interactive, Inc

Appellant

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

  1. 1 Whether the counterclaim for restitution based on alleged overpayment by mistake should be struck out
  2. 2 Whether the defence of set-off should be struck out and summary judgment entered
  3. 3 Whether permission should be granted to amend the defence and counterclaim regarding industry practice and the Thrills Game

Ratio Decidendi

The counterclaim for restitution was properly struck out as there was no pleaded or evidential basis for a mistake; however, the defence of set-off and related amendments regarding industry practice should proceed to trial as issues of contractual construction and quantum remain live. Amendments regarding the Thrills Game and inducement to breach of contract should be allowed to proceed, subject to further developments in the law.

Court Disposition

Appeal allowed in part, appeal dismissed in part

Orders

  • Permission to appeal against striking out of restitution counterclaim refused
  • Permission to appeal and allow amendments to defence and counterclaim regarding set-off and industry practice granted