New Century Media Ltd v Makhlay

New Century Media Ltd v Makhlay

The defendant is precluded from raising repudiation and early termination defences at the quantum stage because default judgment on liability is conclusive as pleaded. The contract was for a fixed one-year term with no provision for early termination. NCM is entitled to recover the October 2012 invoice as a debt and damages for the remainder of the contract term, subject to deductions for savings and mitigation. The defendant's arguments on repudiation and early termination are inconsistent with the judgment and are dismissed.

Parties
Claimant: New Century Media Limited; Defendant: Mr Vladimir Makhlay
Jurisdiction
England and Wales
Judgment Date
21 November 2013
Procedural Posture
Civil Contract / Assessment of Quantum Following Default Judgment on Liability
Outcome
Judgment for the claimant on quantum assessment; damages and debt awarded subject to deductions for savings and mitigation.
Legal Topics
Repudiatory Breach, Fixed Term Contracts, Default Judgment, Damages Assessment, Mitigation of Loss, Early Termination, Debt Vs Damages
Contract Law Repudiatory Breach Fixed Term Contracts Default Judgment Damages Assessment Mitigation of Loss Early Termination Debt Vs Damages

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Parties

New Century Media Limited

Claimant

Mr Vladimir Makhlay

Defendant

Procedural Posture

Civil Contract / Assessment of Quantum Following Default Judgment on Liability

Legal Issues

  1. 1 Whether the defendant can raise repudiation and early termination defences at the quantum stage after default judgment on liability
  2. 2 Whether the contract was for a fixed term with no provision for early termination
  3. 3 Whether the claimant is entitled to debt or damages for unpaid invoices and early termination

Ratio Decidendi

The defendant is precluded from raising repudiation and early termination defences at the quantum stage because default judgment on liability is conclusive as pleaded. The contract was for a fixed one-year term with no provision for early termination. NCM is entitled to recover the October 2012 invoice as a debt and damages for the remainder of the contract term, subject to deductions for savings and mitigation. The defendant's arguments on repudiation and early termination are inconsistent with the judgment and are dismissed.

Court Disposition

Judgment for the claimant on quantum assessment; damages and debt awarded subject to deductions for savings and mitigation.

Orders

  • Defendant to pay claimant £560 for IT services.
  • Defendant to pay claimant £75,000 as debt for October 2012 invoice.