Johnson Control Systems Ltd. v Techni-Track Europa Ltd.

Johnson Control Systems Ltd. v Techni-Track Europa Ltd.

The trial judge was entitled to include the associated company's profits as part of Europa's trading record, to adjust maintainable earnings for one-off costs, and to make the costs order as he did. The only error was inclusion of unclaimed bank interest, which was corrected on appeal.

Parties
Appellant: Johnson Control Systems Ltd; Respondent: Techni-Track Europa Ltd (In Administrative Receivership)
Jurisdiction
England and Wales
Judgment Date
30 July 2003
Procedural Posture
Civil Appeal / Judgment on Appeal and Cross Appeal
Outcome
Appeal allowed in part; cross-appeal dismissed
Legal Topics
Damages Inquiry, Company Valuation, Costs Orders, Freezing Injunctions
Civil Procedure Contract Law Damages Inquiry Company Valuation Costs Orders Freezing Injunctions

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Parties

Johnson Control Systems Ltd

Appellant

Techni-Track Europa Ltd (In Administrative Receivership)

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal and Cross Appeal

Legal Issues

  1. 1 Whether the trial judge erred in including profits of an associated company in valuing the respondent
  2. 2 Whether maintainable earnings were correctly calculated for damages assessment
  3. 3 Whether the judge failed to deduct interest, depreciation, and amortisation

Ratio Decidendi

The trial judge was entitled to include the associated company's profits as part of Europa's trading record, to adjust maintainable earnings for one-off costs, and to make the costs order as he did. The only error was inclusion of unclaimed bank interest, which was corrected on appeal.

Court Disposition

Appeal allowed in part; cross-appeal dismissed

Orders

  • Appeal allowed as to bank charges in sum of £1,847; all other grounds of appeal dismissed; cross-appeal dismissed; counsel to lodge an agreed minute of order