Jagger & Ors v Decca Music Group Ltd [2004] EWHC 2542 (Ch) (12 November 2004)

Jagger & Ors v Decca Music Group Ltd [2004] EWHC 2542 (Ch) (12 November 2004)

The arbitration clause is sufficiently broad to cover disputes arising from breach of clause 6, and the limitation to pecuniary remedies does not deprive clause 6 of its substance, as damages can be assessed based on what an audit would have revealed. Therefore, the proceedings must be stayed in favour of arbitration.

Citation
[2004] EWHC 2542 (Ch)
Parties
Claimant: Michael Jagger; Claimant: Keith Richards; Claimant: Charles Watts; Defendant: Decca Music Group Limited
Jurisdiction
England and Wales
Judgment Date
12 November 2004
Procedural Posture
Appeal / Appeal Against Refusal to Stay Proceedings Under Arbitration Act 1996
Outcome
Proceedings stayed pending arbitration
Legal Topics
Arbitration Clause Interpretation, Right to Audit, Remedies for Breach of Contract
Contract Law Arbitration Arbitration Clause Interpretation Right to Audit Remedies for Breach of Contract

Case Brief

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Parties

Michael Jagger

Claimant

Keith Richards

Claimant

Charles Watts

Claimant

Decca Music Group Limited

Defendant

Procedural Posture

Appeal / Appeal Against Refusal to Stay Proceedings Under Arbitration Act 1996

Legal Issues

  1. 1 Whether the arbitration clause applies to a breach of the audit right under clause 6
  2. 2 Whether the limitation to pecuniary remedies in the arbitration clause deprives clause 6 of its substance

Ratio Decidendi

The arbitration clause is sufficiently broad to cover disputes arising from breach of clause 6, and the limitation to pecuniary remedies does not deprive clause 6 of its substance, as damages can be assessed based on what an audit would have revealed. Therefore, the proceedings must be stayed in favour of arbitration.

Court Disposition

Proceedings stayed pending arbitration

Orders

  • Proceedings stayed under section 9 of the Arbitration Act 1996
  • Costs to be determined after hearing counsel if not agreed