Cosmos Holidays Plc v Dhanjal Investments Ltd

Cosmos Holidays Plc v Dhanjal Investments Ltd

Permission to appeal is granted on the construction of the indemnity clause because it is arguable whether the clause extends beyond the hotel to the camp, given the structure and context of the contract. Permission is refused on the grounds of the clause being onerous and the reasonableness of the settlement, as these were matters for the trial judge and commercial parties are presumed to understand their contracts.

Parties
Claimant: Cosmos Holidays PLC; Defendant: Dhanjal Investments Ltd
Jurisdiction
England and Wales
Judgment Date
09 September 2008
Procedural Posture
Civil Appeal / Renewed Application for Permission to Appeal
Outcome
Permission to appeal granted on construction issue; refused on other grounds.
Legal Topics
Indemnity Clauses, Contract Construction, Reasonableness of Settlement
Contract Law Indemnity Clauses Contract Construction Reasonableness of Settlement

Case Brief

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Parties

Cosmos Holidays PLC

Claimant

Dhanjal Investments Ltd

Defendant

Procedural Posture

Civil Appeal / Renewed Application for Permission to Appeal

Legal Issues

  1. 1 Whether the indemnity clause extended to incidents at the camp as well as the hotel
  2. 2 Whether the indemnity clause was particularly onerous and required special notice
  3. 3 Whether Cosmos's settlement with its clients was reasonable

Ratio Decidendi

Permission to appeal is granted on the construction of the indemnity clause because it is arguable whether the clause extends beyond the hotel to the camp, given the structure and context of the contract. Permission is refused on the grounds of the clause being onerous and the reasonableness of the settlement, as these were matters for the trial judge and commercial parties are presumed to understand their contracts.

Court Disposition

Permission to appeal granted on construction issue; refused on other grounds.

Orders

  • Permission to appeal granted on the construction issue.
  • Permission to appeal refused on the other two grounds.