Whyte & Mackay Ltd v Capstone International Incorporated [2010] ScotCS CSOH_120 (11 August 2010)

Whyte & Mackay Ltd v Capstone International Incorporated [2010] ScotCS CSOH_120 (11 August 2010)

The defenders established a prima facie case that the pursuers' appointment of another entity as exclusive agent with authority to appoint distributors in the United States breached the exclusive distributorship agreement. The balance of convenience favoured granting interim interdict, as the defenders would suffer greater prejudice from refusal than the pursuers would from its grant, and there was insufficient evidence that the defenders could not meet any damages award for wrongful interdict.

Citation
[2010] ScotCS CSOH_120
Parties
Pursuer: Whyte and Mackay Limited; Defender: Capstone International Incorporated
Jurisdiction
Scotland
Judgment Date
11 August 2010
Procedural Posture
Commercial Contract Dispute / Interim Interdict Application
Outcome
Interim interdict granted
Legal Topics
Distributorship Agreements, Interim Interdict, Exclusive Distribution Rights, Breach of Contract
Commercial Law Contract Law Distributorship Agreements Interim Interdict Exclusive Distribution Rights Breach of Contract

Case Brief

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Parties

Whyte and Mackay Limited

Pursuer

Capstone International Incorporated

Defender

Procedural Posture

Commercial Contract Dispute / Interim Interdict Application

Legal Issues

  1. 1 Whether the pursuers breached the exclusive distributorship agreement by appointing another distributor or agent in the United States
  2. 2 Whether interim interdict should be granted to prevent the pursuers from appointing or fulfilling orders from any party other than the defenders in the United States

Ratio Decidendi

The defenders established a prima facie case that the pursuers' appointment of another entity as exclusive agent with authority to appoint distributors in the United States breached the exclusive distributorship agreement. The balance of convenience favoured granting interim interdict, as the defenders would suffer greater prejudice from refusal than the pursuers would from its grant, and there was insufficient evidence that the defenders could not meet any damages award for wrongful interdict.

Court Disposition

Interim interdict granted

Orders

  • Pursuers interdicted from accepting or fulfilling orders from any person or entity in the United States (except duty free outlets) other than the defenders for the purchase of John Barr Scotch whiskies in bottles for resale in the United States, pending the litigation and until valid termination of the...
  • Leave granted to pursuers to reclaim interlocutors dated 30 July and 11 August 2010.