Clipper Logistics Group Ltd v Monsoon Accessorize Ltd

Clipper Logistics Group Ltd v Monsoon Accessorize Ltd

Clause 13.1.1 of the Settlement Agreement indemnifies Monsoon for costs and expenses properly incurred as a result of Clipper's breach of clause 7.1.7, including those incurred in reasonable mitigation or avoidance of fines, penalties, or assessments, and is not limited to cases where such financial liabilities have already been imposed.

Parties
Claimant: Clipper Logistics Group Limited; Defendant: Monsoon Accessorize Limited
Jurisdiction
England and Wales
Judgment Date
03 March 2011
Procedural Posture
Commercial Dispute / Trial of Preliminary Issue
Outcome
Preliminary issue determined in favour of Monsoon; Clipper's restrictive construction rejected.
Legal Topics
Interpretation of Indemnity Clauses, Settlement Agreements, Escrow Arrangements
Contract Law Commercial Law Interpretation of Indemnity Clauses Settlement Agreements Escrow Arrangements

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Parties

Clipper Logistics Group Limited

Claimant

Monsoon Accessorize Limited

Defendant

Procedural Posture

Commercial Dispute / Trial of Preliminary Issue

Legal Issues

  1. 1 Proper construction of clause 13.1.1 of the Settlement Agreement
  2. 2 Scope of indemnity for costs and expenses under clause 13.1.1

Ratio Decidendi

Clause 13.1.1 of the Settlement Agreement indemnifies Monsoon for costs and expenses properly incurred as a result of Clipper's breach of clause 7.1.7, including those incurred in reasonable mitigation or avoidance of fines, penalties, or assessments, and is not limited to cases where such financial liabilities have already been imposed.

Court Disposition

Preliminary issue determined in favour of Monsoon; Clipper's restrictive construction rejected.

Orders

  • The question posed in the preliminary issue is answered in the negative.