Favermead Ltd v FPD Savills Ltd [2005] EWHC 626 (Ch) (02 March 2005)

Favermead Ltd v FPD Savills Ltd [2005] EWHC 626 (Ch) (02 March 2005)

There is a real and substantial dispute as to whether the agents are entitled to commission under the agency agreement, specifically whether an implied term requires them to be the effective cause of the sale. This dispute justifies the grant of an injunction restraining the presentation of a winding up petition.

Source-derived case information.

Citation
[2005] EWHC 626 (Ch)
Parties
Applicant: Favermead Limited; Respondents: FPD Savills Limited & Ors.
Jurisdiction
England and Wales
Judgment Date
02 March 2005
Procedural Posture
Injunction Application / Hearing of Application for Injunction to Restrain Presentation of Winding Up Petition
Outcome
Injunction granted
Legal Topics
Estate Agent Commission, Implied Terms in Agency Contracts, Effective Cause Requirement, Injunctions, Winding Up Petitions
Commercial Law Agency Law Estate Agent Commission Implied Terms in Agency Contracts Effective Cause Requirement Injunctions Winding Up Petitions

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Parties

Favermead Limited

Applicant

FPD Savills Limited & Ors.

Respondents

Procedural Posture

Injunction Application / Hearing of Application for Injunction to Restrain Presentation of Winding Up Petition

Legal Issues

  1. 1 Whether an implied term exists in the agency agreement requiring the agents to be the effective cause of the sale for commission to be payable
  2. 2 Whether there is a real and substantial dispute about the agents' entitlement to commission justifying an injunction against a winding up petition

Ratio Decidendi

There is a real and substantial dispute as to whether the agents are entitled to commission under the agency agreement, specifically whether an implied term requires them to be the effective cause of the sale. This dispute justifies the grant of an injunction restraining the presentation of a winding up petition.

Court Disposition

Injunction granted

Orders

  • Respondents are restrained from presenting a winding up petition against the applicant based on the disputed debt.