Ryanair Ltd v SR Technics Ireland Ltd

Ryanair Ltd v SR Technics Ireland Ltd

Clause 3 of SL6A, properly construed and with necessary implied terms, obliged SRT to use best endeavours to obtain DAA consent for a 15-year licence or such lesser term as DAA would reasonably consent to, and to seek renewal upon expiry. SRT breached these obligations by failing to pursue consent diligently and withholding information from Ryanair. Collateral contract and estoppel arguments reinforce Ryanair's entitlement. Damages are not adequate; injunctive relief and specific performance are warranted.

Parties
Claimant: Ryanair Limited; Defendant: SR Technics Ireland Limited
Jurisdiction
England and Wales
Judgment Date
20 December 2007
Procedural Posture
Commercial Contract Dispute / Final Judgment After Trial
Outcome
Judgment for Ryanair Limited
Legal Topics
Implied Terms, Collateral Contract, Estoppel, Best Endeavours, Specific Performance, Injunction
Contract Law Commercial Law Implied Terms Collateral Contract Estoppel Best Endeavours Specific Performance Injunction

Case Brief

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Parties

Ryanair Limited

Claimant

SR Technics Ireland Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment After Trial

Legal Issues

  1. 1 Proper construction of clause 3 of Side Letter 6A
  2. 2 Existence and effect of collateral contract
  3. 3 Estoppel arising from assurances

Ratio Decidendi

Clause 3 of SL6A, properly construed and with necessary implied terms, obliged SRT to use best endeavours to obtain DAA consent for a 15-year licence or such lesser term as DAA would reasonably consent to, and to seek renewal upon expiry. SRT breached these obligations by failing to pursue consent diligently and withholding information from Ryanair. Collateral contract and estoppel arguments reinforce Ryanair's entitlement. Damages are not adequate; injunctive relief and specific performance are warranted.

Court Disposition

Judgment for Ryanair Limited

Orders

  • Injunction restraining SRT from revoking Ryanair's licence to occupy hangar space
  • Order for specific performance by SRT to use best endeavours to obtain DAA consent for a Hangar Licence Agreement for 15 years or such lesser term as DAA may reasonably consent to, and to seek renewal upon expiry to give a total of at least 15 years