Grizzly Business Ltd v Stena Drilling Ltd & Anor

Grizzly Business Ltd v Stena Drilling Ltd & Anor

On the balance of probabilities, Mr. Devine and Mr. Welo agreed during the telephone call of 29 November 2011 that Grizzly Business Limited would be entitled to a success fee of 0.25% of the gross revenue if Stena chartered the vessel to Shell. Mr. Devine did not repudiate the agreement by his subsequent conduct. The party liable for the success fee is Stena Drillmax I Limited, as contemplated by the consultancy agreement between the parties.

Parties
Claimant: Grizzly Business Limited; Defendant: Stena Drilling Limited; Defendant: Stena Drillmax I Limited
Jurisdiction
England and Wales
Judgment Date
13 June 2014
Procedural Posture
Commercial Contract Dispute / Judgment After Trial
Outcome
Judgment for the claimant against the second defendant (Stena Drillmax I Limited) for the agreed success fee.
Legal Topics
Success Fee Agreements, Oral Contracts, Repudiation, Agency, Consultancy Agreements
Contract Law Commercial Law Success Fee Agreements Oral Contracts Repudiation Agency Consultancy Agreements

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Parties

Grizzly Business Limited

Claimant

Stena Drilling Limited

Defendant

Stena Drillmax I Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether an oral agreement for a success fee of 0.25% of gross revenue was made between Mr. Devine (Grizzly Business Limited) and Mr. Welo (Stena) on 29 November 2011
  2. 2 Whether Mr. Devine repudiated the agreement by his subsequent conduct
  3. 3 Which defendant company is liable for the success fee

Ratio Decidendi

On the balance of probabilities, Mr. Devine and Mr. Welo agreed during the telephone call of 29 November 2011 that Grizzly Business Limited would be entitled to a success fee of 0.25% of the gross revenue if Stena chartered the vessel to Shell. Mr. Devine did not repudiate the agreement by his subsequent conduct. The party liable for the success fee is Stena Drillmax I Limited, as contemplated by the consultancy agreement between the parties.

Court Disposition

Judgment for the claimant against the second defendant (Stena Drillmax I Limited) for the agreed success fee.

Orders

  • Stena Drillmax I Limited is liable to pay Grizzly Business Limited a success fee of 0.25% of the gross revenue under the Shell charter, less an agreed deduction of £150,000.