Crucial Music Corporation & Anor v Klondyke Management AG & Ors [2007] EWHC 1782 (Ch) (25 July 2007)

Crucial Music Corporation & Anor v Klondyke Management AG & Ors [2007] EWHC 1782 (Ch) (25 July 2007)

There is a good arguable case that the place of performance of the warranties was London, where the transfer of the assets was effected. For the tort claim, the loss from misrepresentation occurred in London when the claimants entered into the Agreement and paid the purchase price. The Master did not misdirect himself and was correct to dismiss the application to set aside service out of jurisdiction.

Citation
[2007] EWHC 1782 (Ch)
Parties
Claimant/respondent: Crucial Music Corporation (formerly known as Onemusic Corporation); Claimant/respondent: Point Classics LLC; Defendant/appellant: Premstroy Enterprises Limited; Defendant/appellant: Klondyke Management AG (formerly known as Point Classics AG); Defendant/appellant: Klondyke Verwaltungs und Beteiligungsgesellschaft AG; Defendant/appellant: Wilhelm Mittrich; Defendant/appellant: ODS Optical Disc Service GmbH
Jurisdiction
England and Wales
Judgment Date
25 July 2007
Procedural Posture
Appeal / Appeal From Order Dismissing Application to Set Aside Service Out of Jurisdiction
Outcome
appeal dismissed
Legal Topics
Jurisdiction Under Lugano Convention, Jurisdiction Under Judgments Regulation, Breach of Contract, Misrepresentation, Service Out of Jurisdiction
Private International Law Contract Law Tort Law Jurisdiction Under Lugano Convention Jurisdiction Under Judgments Regulation Breach of Contract Misrepresentation Service Out of Jurisdiction

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Parties

Crucial Music Corporation (formerly known as Onemusic Corporation)

Claimant/respondent

Point Classics LLC

Claimant/respondent

Premstroy Enterprises Limited

Defendant/appellant

Klondyke Management AG (formerly known as Point Classics AG)

Defendant/appellant

Klondyke Verwaltungs und Beteiligungsgesellschaft AG

Defendant/appellant

Wilhelm Mittrich

Defendant/appellant

ODS Optical Disc Service GmbH

Defendant/appellant

Procedural Posture

Appeal / Appeal From Order Dismissing Application to Set Aside Service Out of Jurisdiction

Legal Issues

  1. 1 Whether a warranty given by a third party to a purchaser of intellectual property rights as to the nature of those rights can be an obligation with a place of performance within Article 5(1) of the Lugano Convention and Judgments Regulation
  2. 2 Whether the place where damage was sustained as a result of misrepresentation is the place where the contract induced by the misrepresentation was executed and/or completed under Article 5(3) of the Conventions

Ratio Decidendi

There is a good arguable case that the place of performance of the warranties was London, where the transfer of the assets was effected. For the tort claim, the loss from misrepresentation occurred in London when the claimants entered into the Agreement and paid the purchase price. The Master did not misdirect himself and was correct to dismiss the application to set aside service out of jurisdiction.

Court Disposition

appeal dismissed

Orders

  • Defendants' appeal dismissed with costs.