Business Online Group Plc v MCI Worldcom Ltd [2001] EWCA Civ 1399 (9 August 2001)

Business Online Group Plc v MCI Worldcom Ltd [2001] EWCA Civ 1399 (9 August 2001)

An interim injunction restraining termination of services is granted until 14 September 2001 or further order, conditional on Business Online providing security of £20,000 per day, as this sum reasonably protects the defendant's interests pending migration and resolution of the dispute.

Citation
[2001] EWCA Civ 1399
Parties
Claimant: Business Online Group PLC; Defendant: MCI Worldcom Limited
Jurisdiction
England and Wales
Judgment Date
09 August 2001
Procedural Posture
Appeal From Interim Injunction Application / Court of Appeal Judgment on Interlocutory Relief
Outcome
Interim injunction granted subject to provision of security; costs reserved to trial.
Legal Topics
Interim Injunction, Security for Damages, Termination of Services, Estoppel, Unfair Contract Terms
Contract Law Civil Procedure Interim Injunction Security for Damages Termination of Services Estoppel Unfair Contract Terms

Case Brief

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Parties

Business Online Group PLC

Claimant

MCI Worldcom Limited

Defendant

Procedural Posture

Appeal From Interim Injunction Application / Court of Appeal Judgment on Interlocutory Relief

Legal Issues

  1. 1 Whether an interim injunction should be granted to restrain termination of services pending migration to a new supplier
  2. 2 Whether security for the cross-undertaking in damages should be ordered and in what amount
  3. 3 Whether there is a serious question to be tried regarding estoppel and the reasonableness of the termination period under the Unfair Contract Terms Act

Ratio Decidendi

An interim injunction restraining termination of services is granted until 14 September 2001 or further order, conditional on Business Online providing security of £20,000 per day, as this sum reasonably protects the defendant's interests pending migration and resolution of the dispute.

Court Disposition

Interim injunction granted subject to provision of security; costs reserved to trial.

Orders

  • MCI Worldcom restrained from terminating services until 14 September 2001 or further order, conditional on Business Online providing security of £20,000 per day.
  • Security to be paid into defendant's solicitors' designated account as specified.