June 20, 2016

Restaurateur falls fowl of Terms of Business

Royds’ client, Christie + Co, recently succeeded in recovering its agency fee from a business woman following the sale of the Wild Duck Restaurant & Inn situated in the picturesque Cotswolds.  Christie + Co had been engaged on a Sole Selling Rights basis, but following a purported termination of the agency, discovered that the vendor was selling to someone who had been in negotiations to buy previously.  Royds have acted for Christie + Co for many years and have expertise in the estate agent and business transfer agent law.  Partner, Stephen Welfare, took the case and comments: “The case was interesting because initially we only had anecdotal evidence to go on. Quite a lot of detective work was required.  The claim was bitterly contested and every contract point possible was taken.”

In the event, the case settled upon the Defendant accepting a settlement offer made by Christie + Co under CPR Part 36.  Welfare explains; “Part 36 is a useful tool that is available to both parties in litigation to put pressure on the other side to settle the case, and of protecting one’s own position on costs.  If a Part 36 Offer is not accepted, and then later at trial the offeror does better than the offer, the offeree is at risk of paying more in costs and possible additional damages”.

In the case of the Wild Duck, the offer was accepted and Christie + Co recovered its costs, as well as its agency fee.  For more information about the Civil Procedure Rules and litigation, please contact Royds Litigation Department, at [email protected].

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