Starbev GP Ltd v Interbrew Central European Holdings BV

Starbev GP Ltd v Interbrew Central European Holdings BV

The court ruled that the deemed Equity Return under the anti-avoidance provisions is calculated by reference to the actual amount withheld for breach of warranty claims, not the maximum possible exposure. For Excess Equity Return, only Equity Returns with respect to which an Excess Return Payment has already been made are excluded, based on factual occurrence. Contractual interest is not payable as the sums were disputed in good faith within ten business days. ICEH is the overall winner and entitled to 75% of its costs.

Parties
Claimant: Starbev GP Limited; Defendant: Interbrew Central European Holdings BV
Jurisdiction
England and Wales
Judgment Date
21 August 2014
Procedural Posture
Commercial Court Claim / Post Judgment Consequential Rulings
Outcome
Declarations granted as per ICEH and Starbev's submissions; payment order in favour of ICEH; permission to appeal granted; costs awarded to ICEH at 75%.
Legal Topics
Declaratory Relief, Interest on Judgment, Anti Avoidance Provisions, Excess Equity Return Calculation, Costs
Contract Law Commercial Law Declaratory Relief Interest on Judgment Anti Avoidance Provisions Excess Equity Return Calculation Costs

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Parties

Starbev GP Limited

Claimant

Interbrew Central European Holdings BV

Defendant

Procedural Posture

Commercial Court Claim / Post Judgment Consequential Rulings

Legal Issues

  1. 1 Whether breach of warranty claims should reduce the deemed Equity Return under anti-avoidance provisions
  2. 2 Proper calculation of Excess Equity Return and double recovery exclusion
  3. 3 Entitlement to contractual or statutory interest

Ratio Decidendi

The court ruled that the deemed Equity Return under the anti-avoidance provisions is calculated by reference to the actual amount withheld for breach of warranty claims, not the maximum possible exposure. For Excess Equity Return, only Equity Returns with respect to which an Excess Return Payment has already been made are excluded, based on factual occurrence. Contractual interest is not payable as the sums were disputed in good faith within ten business days. ICEH is the overall winner and entitled to 75% of its costs.

Court Disposition

Declarations granted as per ICEH and Starbev's submissions; payment order in favour of ICEH; permission to appeal granted; costs awarded to ICEH at 75%.

Orders

  • ICEH is entitled to the declarations set out at paragraph 184 of the judgment.
  • Starbev is entitled to a declaration on Excess Equity Return as submitted at trial.