THJ Systems Ltd & Anor v Sheridan & Anor [2024] EWHC 3195 (Ch) (16 December 2024)

THJ Systems Ltd & Anor v Sheridan & Anor [2024] EWHC 3195 (Ch) (16 December 2024)

The court found that the claimants had established, on the balance of probabilities, that the defendants' breaches of advertising obligations caused a loss of profits, and that the methodology for calculating damages, while based on assumptions, was reasonable and supported by available evidence and expert audit. The court accepted a revised, more conservative figure for loss of profits (£3,358,079.86) and found that the defendants' failure to comply with disclosure and debarring orders did not relieve the claimants of the burden of proof, but justified resolving uncertainties in the claimants' favour. The court also found that the copyright infringement was established but limited to two...

Citation
[2024] EWHC 3195 (Ch)
Parties
Claimant: THJ Systems Limited; Claimant: OptionNet LLP; Defendant: Daniel Sheridan; Defendant: Sheridan Options Mentoring Corporation
Jurisdiction
England and Wales
Judgment Date
16 December 2024
Procedural Posture
Inquiry as to Damages Following Trial on Liability (chancery Division, Business List) / Assessment of Damages After Liability Judgment and Appeal
Outcome
Damages awarded to claimants for Advertising Breaches in the sum of £3,358,079.86; damages for copyright infringement to be assessed separately; defendants remain debarred from defending; costs orders against defendants remain in force.
Legal Topics
Breach of Contract, Copyright Infringement, Assessment of Damages, Debarring Orders, Case Management Sanctions
Contract Law Intellectual Property Law Civil Procedure Breach of Contract Copyright Infringement Assessment of Damages Debarring Orders Case Management Sanctions

Case Brief

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Parties

THJ Systems Limited

Claimant

OptionNet LLP

Claimant

Daniel Sheridan

Defendant

Sheridan Options Mentoring Corporation

Defendant

Procedural Posture

Inquiry as to Damages Following Trial on Liability (chancery Division, Business List) / Assessment of Damages After Liability Judgment and Appeal

Legal Issues

  1. 1 What is the appropriate measure and quantum of damages for the defendants' breaches of advertising obligations under the LLP Agreement?
  2. 2 What is the appropriate measure and quantum of damages for copyright infringement of the Risk and Price Charts?
  3. 3 Should additional damages be awarded under section 97(2) CDPA due to the defendants' conduct and failure to comply with disclosure orders?

Ratio Decidendi

The court found that the claimants had established, on the balance of probabilities, that the defendants' breaches of advertising obligations caused a loss of profits, and that the methodology for calculating damages, while based on assumptions, was reasonable and supported by available evidence and expert audit. The court accepted a revised, more conservative figure for loss of profits (£3,358,079.86) and found that the defendants' failure to comply with disclosure and debarring orders did not relieve the claimants of the burden of proof, but justified resolving uncertainties in the claimants' favour. The court also found that the copyright infringement was established but limited to two...

Court Disposition

Damages awarded to claimants for Advertising Breaches in the sum of £3,358,079.86; damages for copyright infringement to be assessed separately; defendants remain debarred from defending; costs orders against defendants remain in force.

Orders

  • Defendants to pay claimants £3,358,079.86 for Advertising Breaches.
  • Damages for copyright infringement to be assessed in accordance with the court's findings.