Tullis Russell Papermakers Ltd v Inveresk Ltd [2010] ScotCS CSOH_148 (10 November 2010)

Tullis Russell Papermakers Ltd v Inveresk Ltd [2010] ScotCS CSOH_148 (10 November 2010)

The court found that Inveresk Limited breached the Services Agreement by supplying excessive quantities of defective Gemini board and by mishandling customer complaints in a manner that was antagonistic and damaging to the Gemini brand and its goodwill. These breaches caused substantial loss to Tullis Russell Papermakers Limited, including loss of business and diminution in the value of the acquired brand. The pursuers were entitled to damages quantified on a global basis, as the evidence established a causal link between the breaches and the overall loss. The defenders' counterclaim was only upheld to a nominal extent, and their plea of retention did not defeat the pursuers' claim.

Citation
[2010] ScotCS CSOH_148
Parties
Pursuer: Tullis Russell Papermakers Limited; Defender: Inveresk Limited
Jurisdiction
Scotland
Judgment Date
10 November 2010
Procedural Posture
Commercial Contract Dispute / Judgment After Proof Before Answer
Outcome
judgment for pursuer in substantial part; nominal award on counterclaim
Legal Topics
Breach of Contract, Damages, Sale of Business Assets, Goodwill, Quality Standards, Customer Relations, Counterclaim, Retention
Contract Law Commercial Law Breach of Contract Damages Sale of Business Assets Goodwill Quality Standards Customer Relations +2 more

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Parties

Tullis Russell Papermakers Limited

Pursuer

Inveresk Limited

Defender

Procedural Posture

Commercial Contract Dispute / Judgment After Proof Before Answer

Legal Issues

  1. 1 Whether Inveresk Limited breached the Services Agreement by supplying excessive quantities of defective Gemini board during the Services Period.
  2. 2 Whether Inveresk Limited breached the contract by adopting an antagonistic attitude to customer complaints, thereby damaging the Gemini brand and goodwill.
  3. 3 Whether Tullis Russell Papermakers Limited is entitled to damages for loss of business and goodwill resulting from these breaches.

Ratio Decidendi

The court found that Inveresk Limited breached the Services Agreement by supplying excessive quantities of defective Gemini board and by mishandling customer complaints in a manner that was antagonistic and damaging to the Gemini brand and its goodwill. These breaches caused substantial loss to Tullis Russell Papermakers Limited, including loss of business and diminution in the value of the acquired brand. The pursuers were entitled to damages quantified on a global basis, as the evidence established a causal link between the breaches and the overall loss. The defenders' counterclaim was only upheld to a nominal extent, and their plea of retention did not defeat the pursuers' claim.

Court Disposition

judgment for pursuer in substantial part; nominal award on counterclaim

Orders

  • Defender to pay pursuer £4,800,689 by way of damages for breach of contract.
  • Defender's counterclaim allowed only to the extent of £4,640.80.