Barthélemy Holdings, LLC v Duet Group Ltd [2019] EWHC 2402 (Comm) (20 September 2019)

Barthélemy Holdings, LLC v Duet Group Ltd [2019] EWHC 2402 (Comm) (20 September 2019)

Duet Group Limited is liable as guarantor for DTFS's breach of warranty regarding the hotel budget, but only to the extent that the budget was not prepared on a prudent and reasonable basis and did not reflect the costs required for the quality represented in the brochure. The claim for the full €32m difference is not sustainable; damages are limited to proven shortfall attributable to breach. Set-off claims relating to villa acquisition are not established on the evidence. Minor claims for villa and colony costs are dismissed.

Citation
[2019] EWHC 2402 (Comm)
Parties
Claimant: Barthélemy Holdings, LLC; Defendant: Duet Group Limited; Third Party: Duet Trust and Fiduciary Services S.A.
Jurisdiction
England and Wales
Judgment Date
20 September 2019
Procedural Posture
Commercial Court Claim / Final Judgment
Outcome
Claim partially allowed; damages awarded limited to proven breach. Set-off and minor claims dismissed.
Legal Topics
Guarantees, Breach of Warranty, Hotel Development, Budget Specification, Indemnity
Contract Law Commercial Law Guarantees Breach of Warranty Hotel Development Budget Specification Indemnity

Case Brief

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Parties

Barthélemy Holdings, LLC

Claimant

Duet Group Limited

Defendant

Duet Trust and Fiduciary Services S.A.

Third Party

Procedural Posture

Commercial Court Claim / Final Judgment

Legal Issues

  1. 1 Whether Duet Group Limited is liable as guarantor for breach of warranties relating to hotel specification and budget
  2. 2 Adequacy and prudence of the warranted budget
  3. 3 Whether the hotel was constructed to the quality represented by the brochure

Ratio Decidendi

Duet Group Limited is liable as guarantor for DTFS's breach of warranty regarding the hotel budget, but only to the extent that the budget was not prepared on a prudent and reasonable basis and did not reflect the costs required for the quality represented in the brochure. The claim for the full €32m difference is not sustainable; damages are limited to proven shortfall attributable to breach. Set-off claims relating to villa acquisition are not established on the evidence. Minor claims for villa and colony costs are dismissed.

Court Disposition

Claim partially allowed; damages awarded limited to proven breach. Set-off and minor claims dismissed.

Orders

  • Duet Group Limited to pay damages to Barthélemy Holdings, LLC for breach of warranty, quantum to be determined on proven shortfall.
  • Duet Trust and Fiduciary Services S.A. to indemnify Duet Group Limited for sums paid as guarantor.