London Executive Aviation Ltd v The Lily Partnership Llp

London Executive Aviation Ltd v The Lily Partnership Llp

LEA is entitled to judgment for the CIPs as the entitlement arose under the Agreement and was not extinguished by delay in calculation or notification. Lily is entitled to set off for missing equipment and silver vases but not for APU hire or simulator training. Estoppel does not apply as no clear or unequivocal representation was made by LEA, and no detrimental reliance was established.

Parties
Claimant: London Executive Aviation Limited; Defendant: The Lily Partnership LLP
Jurisdiction
England and Wales
Judgment Date
12 May 2015
Procedural Posture
Commercial Contract Dispute / Judgment After Trial
Outcome
Judgment for the claimant in part, with set-off for certain items allowed to the defendant.
Legal Topics
Aircraft Management Agreement, Charter Incentive Payments, Set Off, Bailment, Estoppel
Contract Law Commercial Law Aircraft Management Agreement Charter Incentive Payments Set Off Bailment Estoppel

Case Brief

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Parties

London Executive Aviation Limited

Claimant

The Lily Partnership LLP

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether LEA is entitled to payment of CIPs under the Agreement
  2. 2 Whether Lily is entitled to set off sums for missing equipment, silver vases, APU hire, and simulator training
  3. 3 Proper construction of the Agreement regarding timing and notification of CIPs

Ratio Decidendi

LEA is entitled to judgment for the CIPs as the entitlement arose under the Agreement and was not extinguished by delay in calculation or notification. Lily is entitled to set off for missing equipment and silver vases but not for APU hire or simulator training. Estoppel does not apply as no clear or unequivocal representation was made by LEA, and no detrimental reliance was established.

Court Disposition

Judgment for the claimant in part, with set-off for certain items allowed to the defendant.

Orders

  • LEA entitled to payment of CIPs totalling £52,222.81 less set-off for missing equipment (£8,998.75) and silver vases (£2,000).
  • Lily not entitled to set off for APU hire or simulator training.