Verizon UK Ltd v Swiftnet Ltd

Verizon UK Ltd v Swiftnet Ltd

Swiftnet failed to prove that any of the special rates it alleged were contractually agreed. The applicable rates were those in MCI's written rate cards and confirmed schedules. No implied term required invoices to reflect agreed rates, and Swiftnet's claims for damages were unproven and too remote. MCI's claim for unpaid invoices succeeds, and Swiftnet's counterclaim fails except for the agreed Israeli traffic credit.

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 / Judgment After Trial
Outcome
Claim allowed; counterclaim dismissed except for agreed credit.
Legal Topics
Telecommunications Charges, Implied Terms, Contractual Interpretation, Counterclaim, Damages, Remoteness of Damage
Contract Law Commercial Law Telecommunications Charges Implied Terms Contractual Interpretation Counterclaim Damages Remoteness of Damage

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Parties

Verizon UK Limited (Formerly MCI WorldCom Limited)

Claimant

Swiftnet Limited

Defendant

Procedural Posture

Commercial Claim / Judgment After Trial

Legal Issues

  1. 1 What rates were contractually applicable to the disputed telecommunications accounts?
  2. 2 Were 'specials' (special rates) agreed orally and, if so, were they binding without written confirmation?
  3. 3 Was there an implied term that invoices would accurately reflect agreed rates?

Ratio Decidendi

Swiftnet failed to prove that any of the special rates it alleged were contractually agreed. The applicable rates were those in MCI's written rate cards and confirmed schedules. No implied term required invoices to reflect agreed rates, and Swiftnet's claims for damages were unproven and too remote. MCI's claim for unpaid invoices succeeds, and Swiftnet's counterclaim fails except for the agreed Israeli traffic credit.

Court Disposition

Claim allowed; counterclaim dismissed except for agreed credit.

Orders

  • MCI's claim for unpaid invoices succeeds.
  • Swiftnet's counterclaim fails except for the agreed credit for Israeli traffic (£275,573.74).