Snowville UK Ltd. v Holidaybreak Plc

Snowville UK Ltd. v Holidaybreak Plc

The indemnity clause should be construed to cover claims by Mr Singh against Baldwin for under-funding of the pension scheme in breach of his service agreement, and the time limitation clause was not incorporated into the indemnity so as to bar the claim.

Parties
Claimant: Snowville UK Limited; Defendant: Holidaybreak PLC
Jurisdiction
England and Wales
Judgment Date
10 June 2004
Procedural Posture
Civil Appeal / Appeal and Cross Appeal From Order Striking Out Claim and Dismissing Action
Outcome
Appeal allowed, cross-appeal dismissed
Legal Topics
Indemnity Clauses, Construction of Contracts, Time Limitation Clauses, Pension Scheme Funding
Contract Law Pensions Law Indemnity Clauses Construction of Contracts Time Limitation Clauses Pension Scheme Funding

Case Brief

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Parties

Snowville UK Limited

Claimant

Holidaybreak PLC

Defendant

Procedural Posture

Civil Appeal / Appeal and Cross Appeal From Order Striking Out Claim and Dismissing Action

Legal Issues

  1. 1 Proper construction of indemnity clause in sale agreement
  2. 2 Whether claimant had liability for under-funding of pension scheme
  3. 3 Whether time limitation clauses barred the claim

Ratio Decidendi

The indemnity clause should be construed to cover claims by Mr Singh against Baldwin for under-funding of the pension scheme in breach of his service agreement, and the time limitation clause was not incorporated into the indemnity so as to bar the claim.

Court Disposition

Appeal allowed, cross-appeal dismissed

Orders

  • Claim reinstated
  • Counsel to be heard on appropriate order regarding claim's framing