Verizon UK Ltd v Swiftnet Ltd [2008] EWHC 551 (Comm) (19 March 2008)

Verizon UK Ltd v Swiftnet Ltd [2008] EWHC 551 (Comm) (19 March 2008)

Swiftnet failed to prove that the special rates it contended for were ever agreed or binding; the applicable rates are those in MCI's issued rate cards and confirmed pricing schedules. No implied term requiring absolute invoice accuracy is to be read into the contract. Swiftnet's counterclaims for damages fail for lack of causation, remoteness, and proof. MCI is entitled to judgment for the unpaid invoices, subject to agreed credits and set-off for Israeli traffic.

Citation
[2008] EWHC 551 (Comm)
Parties
Claimant: Verizon UK Limited (Formerly MCI WorldCom Limited); Defendant: Swiftnet Limited
Jurisdiction
England and Wales
Judgment Date
19 March 2008
Procedural Posture
Commercial Claim (telecommunications Contract Dispute) / High Court Trial Judgment
Outcome
Judgment for the Claimant (MCI), subject to agreed credits and set-off.
Legal Topics
Implied Terms, Contractual Rates, Oral Agreements, Invoice Accuracy, Counterclaim for Damages, Estoppel, Remoteness of Damages
Contract Law Commercial Law Telecommunications Law Implied Terms Contractual Rates Oral Agreements Invoice Accuracy Counterclaim for Damages +2 more

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Parties

Verizon UK Limited (Formerly MCI WorldCom Limited)

Claimant

Swiftnet Limited

Defendant

Procedural Posture

Commercial Claim (telecommunications Contract Dispute) / High Court Trial Judgment

Legal Issues

  1. 1 What were the applicable contractual rates for telecommunications services under the relevant accounts?
  2. 2 Were 'specials' (special rates) orally agreed and, if so, were they binding without written confirmation?
  3. 3 Was there an implied term that MCI would render accurate invoices?

Ratio Decidendi

Swiftnet failed to prove that the special rates it contended for were ever agreed or binding; the applicable rates are those in MCI's issued rate cards and confirmed pricing schedules. No implied term requiring absolute invoice accuracy is to be read into the contract. Swiftnet's counterclaims for damages fail for lack of causation, remoteness, and proof. MCI is entitled to judgment for the unpaid invoices, subject to agreed credits and set-off for Israeli traffic.

Court Disposition

Judgment for the Claimant (MCI), subject to agreed credits and set-off.

Orders

  • Swiftnet to pay MCI the sum of £1,554,515.71 less agreed credits and set-off for Israeli traffic (£275,573.74).
  • Swiftnet's counterclaims for damages are dismissed.