Phones 4u Ltd v EE Ltd [2018] EWHC 49 (Comm) (16 January 2018)

Phones 4u Ltd v EE Ltd [2018] EWHC 49 (Comm) (16 January 2018)

Phones 4U's application for summary judgment on EE's counterclaim for loss of bargain damages succeeds solely on the ground that EE's termination letter exercised a contractual right to terminate and did not terminate for repudiatory breach or renunciation, thereby precluding a claim for loss of bargain damages. The court found that, assuming the existence of the alleged obligations and breach, EE nonetheless could not succeed in its counterclaim as a matter of law due to the terms of its own termination letter.

Citation
[2018] EWHC 49 (Comm)
Parties
Claimant: Phones 4U Limited (in administration); Defendant: EE Limited
Jurisdiction
England and Wales
Judgment Date
16 January 2018
Procedural Posture
Commercial Court Claim and Counterclaim / Summary Judgment Application on Counterclaim
Outcome
Summary judgment granted for the claimant; EE's primary counterclaim for loss of bargain damages dismissed.
Legal Topics
Termination of Contract, Repudiatory Breach, Loss of Bargain Damages, Summary Judgment, Construction of Contractual Terms, Administration and Insolvency, Counterclaims
Contract Law Commercial Law Insolvency Law Termination of Contract Repudiatory Breach Loss of Bargain Damages Summary Judgment Construction of Contractual Terms +2 more

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Parties

Phones 4U Limited (in administration)

Claimant

EE Limited

Defendant

Procedural Posture

Commercial Court Claim and Counterclaim / Summary Judgment Application on Counterclaim

Legal Issues

  1. 1 Whether EE's counterclaim for loss of bargain damages has a real prospect of success
  2. 2 Whether Phones 4U was in repudiatory breach or had renounced the contract by ceasing trading prior to termination
  3. 3 Whether the obligations alleged by EE (Key Obligation and PAYG Obligation) existed and were breached

Ratio Decidendi

Phones 4U's application for summary judgment on EE's counterclaim for loss of bargain damages succeeds solely on the ground that EE's termination letter exercised a contractual right to terminate and did not terminate for repudiatory breach or renunciation, thereby precluding a claim for loss of bargain damages. The court found that, assuming the existence of the alleged obligations and breach, EE nonetheless could not succeed in its counterclaim as a matter of law due to the terms of its own termination letter.

Court Disposition

Summary judgment granted for the claimant; EE's primary counterclaim for loss of bargain damages dismissed.

Orders

  • EE's counterclaim for loss of bargain damages is dismissed.
  • Permission to amend the counterclaim is refused as futile.