Gesner Investments Ltd v Bombardier Inc

Gesner Investments Ltd v Bombardier Inc

The right to terminate after 90 days of Non-Excusable Delay under Article 8.4 arises only 'pursuant to Article 9', which requires compliance with the Article 9.2 procedure, including notice and a 10-day cure period. The claimant was not entitled to terminate the agreement immediately after 90 days without following this procedure. Consequently, the defendant was entitled to retain 10% of the purchase price as liquidated damages under Article 9.5.

Parties
Claimant: Gesner Investments Limited; Defendant: Bombardier Inc
Jurisdiction
England and Wales
Judgment Date
22 October 2010
Procedural Posture
Commercial Contract Dispute / Summary Judgment Application
Outcome
Application dismissed
Legal Topics
Construction of Contractual Terms, Termination of Contract, Liquidated Damages, Interest on Repayments
Contract Law Commercial Law Construction of Contractual Terms Termination of Contract Liquidated Damages Interest on Repayments

Case Brief

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Parties

Gesner Investments Limited

Claimant

Bombardier Inc

Defendant

Procedural Posture

Commercial Contract Dispute / Summary Judgment Application

Legal Issues

  1. 1 Whether the claimant was entitled to terminate the Aircraft Purchase Agreement immediately after 90 days of Non-Excusable Delay without following the procedure in Article 9.2
  2. 2 Whether the claimant is entitled to reimbursement of 10% of the purchase price retained by the defendant as liquidated damages
  3. 3 What is the correct rate of interest applicable to any sums to be reimbursed under Article 9.3

Ratio Decidendi

The right to terminate after 90 days of Non-Excusable Delay under Article 8.4 arises only 'pursuant to Article 9', which requires compliance with the Article 9.2 procedure, including notice and a 10-day cure period. The claimant was not entitled to terminate the agreement immediately after 90 days without following this procedure. Consequently, the defendant was entitled to retain 10% of the purchase price as liquidated damages under Article 9.5.

Court Disposition

Application dismissed