Kama Aviation Company Ltd v Deir & Ors [2010] EWHC 1276 (QB) (28 May 2010)

Kama Aviation Company Ltd v Deir & Ors [2010] EWHC 1276 (QB) (28 May 2010)

The 2003 Agreement entitled Mr Deir to a 10% commission on net profits from all commercial charter income, with net profits calculated as revenue less variable costs but not fixed costs. The agreement did not entitle Mr Deir to commission on the sale of the Boeing aircraft, nor was there a separate agreement for such commission. The payment from Lasham Airport was a secret profit for which Mr Deir must account to Kama Aviation.

Citation
[2010] EWHC 1276 (QB)
Parties
Claimant: Kama Aviation Company Ltd; Defendant/part 20 Claimant: Zaher Nicola Jeries Deir; Defendant: Jet Connections Ltd; Part 20 Defendant: Fahad Bin Saleh Mohammed Al Athel
Jurisdiction
England and Wales
Judgment Date
28 May 2010
Procedural Posture
Commercial/contract Dispute / High Court Trial Judgment
Outcome
Claim and counterclaim both partially succeed; monetary judgments for both parties.
Legal Topics
Interpretation of Contracts, Secret Profits, Commission Entitlement, Fiduciary Duties, Calculation of Net Profits
Contract Law Employment Law Agency Law Interpretation of Contracts Secret Profits Commission Entitlement Fiduciary Duties Calculation of Net Profits

Case Brief

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Parties

Kama Aviation Company Ltd

Claimant

Zaher Nicola Jeries Deir

Defendant/part 20 Claimant

Jet Connections Ltd

Defendant

Fahad Bin Saleh Mohammed Al Athel

Part 20 Defendant

Procedural Posture

Commercial/contract Dispute / High Court Trial Judgment

Legal Issues

  1. 1 Proper construction of 'net profits' under 2003 Agreement for commission calculation
  2. 2 Entitlement to commission on sale of Boeing 727 aircraft
  3. 3 Whether payment from Lasham Airport constituted a secret profit

Ratio Decidendi

The 2003 Agreement entitled Mr Deir to a 10% commission on net profits from all commercial charter income, with net profits calculated as revenue less variable costs but not fixed costs. The agreement did not entitle Mr Deir to commission on the sale of the Boeing aircraft, nor was there a separate agreement for such commission. The payment from Lasham Airport was a secret profit for which Mr Deir must account to Kama Aviation.

Court Disposition

Claim and counterclaim both partially succeed; monetary judgments for both parties.

Orders

  • Judgment for Kama Aviation for USD 72,500 plus interest (retained commission on Boeing sale)
  • Judgment for Kama Aviation for USD 40,000 plus interest (secret profit from Lasham payment)