Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd

Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd

MMT is awarded its costs of the liability trial on an indemnity basis, subject to a 5% reduction for not succeeding on the final accounting/restitutionary issue, due to ICI's unreasonable conduct and pursuit of exceptionally weak repudiation claims. Amendments to the defence and counterclaim are allowed only to the extent that they relate to detailed accounting or damages for breach of contract, not to liability issues, and only those amendments identified by the court are permitted.

Parties
Claimant: Imperial Chemical Industries Ltd; Defendant: Merit Merrell Technology Ltd
Jurisdiction
England and Wales
Judgment Date
26 July 2017
Procedural Posture
Civil (commercial/construction) / Post Liability Judgment; Costs and Amendment Applications
Outcome
Costs awarded to MMT on indemnity basis (less 5%); limited permission to amend defence and counterclaim granted.
Legal Topics
Repudiation of Contract, Costs (indemnity and Standard Basis), Amendment of Pleadings, Quantum of Damages
Contract Law Civil Procedure Repudiation of Contract Costs (indemnity and Standard Basis) Amendment of Pleadings Quantum of Damages

Case Brief

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Parties

Imperial Chemical Industries Ltd

Claimant

Merit Merrell Technology Ltd

Defendant

Procedural Posture

Civil (commercial/construction) / Post Liability Judgment; Costs and Amendment Applications

Legal Issues

  1. 1 Whether costs should be awarded immediately after liability judgment and on what basis (standard or indemnity)
  2. 2 Whether proposed amendments to the defence and counterclaim should be allowed at this stage

Ratio Decidendi

MMT is awarded its costs of the liability trial on an indemnity basis, subject to a 5% reduction for not succeeding on the final accounting/restitutionary issue, due to ICI's unreasonable conduct and pursuit of exceptionally weak repudiation claims. Amendments to the defence and counterclaim are allowed only to the extent that they relate to detailed accounting or damages for breach of contract, not to liability issues, and only those amendments identified by the court are permitted.

Court Disposition

Costs awarded to MMT on indemnity basis (less 5%); limited permission to amend defence and counterclaim granted.

Orders

  • MMT awarded its costs of the liability trial on an indemnity basis, subject to detailed assessment and a 5% reduction.
  • MMT granted permission to amend its defence and counterclaim only as specified by the court; other proposed amendments refused.