Araci v Fallon [2011] EWCA Civ 668 (04 June 2011)

Araci v Fallon [2011] EWCA Civ 668 (04 June 2011)

The Court of Appeal held that the defendant's proposed conduct would be a clear breach of a negative covenant in the retainer agreement, that damages would not be an adequate remedy due to the complexity of assessment and risk of non-payment, and that none of the discretionary factors relied on by the judge below justified refusal of an injunction. Accordingly, the injunction should be granted to restrain the breach.

Citation
[2011] EWCA Civ 668
Parties
Appellant: Vefa Ibrahim Araci; Respondent: Kieren Fallon
Jurisdiction
England and Wales
Judgment Date
04 June 2011
Procedural Posture
Appeal / Interlocutory Injunction Appeal From High Court to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Interim Injunctions, Negative Covenants, Adequacy of Damages, Discretionary Equitable Remedies, Restraint of Trade
Contract Law Equity Interim Injunctions Negative Covenants Adequacy of Damages Discretionary Equitable Remedies Restraint of Trade

Case Brief

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Parties

Vefa Ibrahim Araci

Appellant

Kieren Fallon

Respondent

Procedural Posture

Appeal / Interlocutory Injunction Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether an interim injunction should be granted to restrain breach of a negative covenant in a retainer agreement by a jockey
  2. 2 Whether damages are an adequate remedy for breach of contract in this context
  3. 3 Whether the judge at first instance erred in exercising discretion to refuse an injunction

Ratio Decidendi

The Court of Appeal held that the defendant's proposed conduct would be a clear breach of a negative covenant in the retainer agreement, that damages would not be an adequate remedy due to the complexity of assessment and risk of non-payment, and that none of the discretionary factors relied on by the judge below justified refusal of an injunction. Accordingly, the injunction should be granted to restrain the breach.

Court Disposition

Appeal allowed

Orders

  • Interim injunction granted restraining the defendant from riding any horse other than Native Khan in the Epsom Derby on 4 June 2011