Watersheds v Simms [2009] EWHC 713 (QB) (12 March 2009)

Watersheds v Simms [2009] EWHC 713 (QB) (12 March 2009)

The contract expressly entitles Watersheds to a fee if the business is sold during the engagement period, regardless of whether Watersheds was involved or an effective cause of the sale; the express terms are inconsistent with the implication of an effective cause requirement.

Citation
[2009] EWHC 713 (QB)
Parties
Claimant: Watersheds Limited; Defendant: Christopher Simms
Jurisdiction
England and Wales
Judgment Date
12 March 2009
Procedural Posture
Appeal / Judgment on Appeal Against Dismissal of Summary Judgment Application
Outcome
Appeal allowed; summary judgment granted for Claimant
Legal Topics
Implied Terms, Remuneration Clauses, Agency Contracts, Termination Clauses
Contract Law Commercial Law Implied Terms Remuneration Clauses Agency Contracts Termination Clauses

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Parties

Watersheds Limited

Claimant

Christopher Simms

Defendant

Procedural Posture

Appeal / Judgment on Appeal Against Dismissal of Summary Judgment Application

Legal Issues

  1. 1 Whether an implied term requiring Watersheds to be an effective cause of the sale should be read into the contract
  2. 2 Whether Watersheds is entitled to a fee despite not being involved in the sale

Ratio Decidendi

The contract expressly entitles Watersheds to a fee if the business is sold during the engagement period, regardless of whether Watersheds was involved or an effective cause of the sale; the express terms are inconsistent with the implication of an effective cause requirement.

Court Disposition

Appeal allowed; summary judgment granted for Claimant

Orders

  • Judgment entered for Claimant
  • Quantum to be determined at a disposal hearing