Durham Tees Valley Airport Ltd v Bmi Baby Ltd & Anor
The agreements imposed an obligation on bmibaby to base and operate two aircraft from DTVA for 10 years, but the absence of objective criteria or minimum requirements for operation rendered any implied term as to reasonable operation unenforceable; thus, the claim fails for lack of certainty.
- Parties
- Claimant: Durham Tees Valley Airport Limited; 1st Defendant: BMI Baby Limited; 2nd Defendant: British Midland Airways Limited
- Jurisdiction
- England and Wales
- Judgment Date
- 30 April 2009
- Procedural Posture
- Commercial Contract Dispute / Final Judgment
- Outcome
- claim dismissed
- Legal Topics
- Interpretation of Contracts, Implied Terms, Damages, Agreement to Agree
Case Brief
Summary, issues, holding and outcome
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Parties
Durham Tees Valley Airport Limited
Claimant
BMI Baby Limited
1st Defendant
British Midland Airways Limited
2nd Defendant
Procedural Posture
Commercial Contract Dispute / Final Judgment
Legal Issues
- 1 Whether the agreements obliged bmibaby to base and operate two aircraft from DTVA for 10 years
- 2 Whether a term could be implied as to the manner and extent of operation
- 3 Whether the agreements were enforceable or amounted to an agreement to agree
Ratio Decidendi
The agreements imposed an obligation on bmibaby to base and operate two aircraft from DTVA for 10 years, but the absence of objective criteria or minimum requirements for operation rendered any implied term as to reasonable operation unenforceable; thus, the claim fails for lack of certainty.
Court Disposition
claim dismissed
Orders
- judgment for the defendants
- costs to be determined
Full Case Text
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