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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Premier International Trading House Ltd v. Seamar Ltd. [1997] IEHC 215 (8th May, 1997) URL: http://www.bailii.org/ie/cases/IEHC/1997/215.html Cite as: [1997] IEHC 215 |
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1. This
interlocutory motion for an injunction came before the Court on Thursday 17
April 1997. The matter was contentious with numerous and voluminous affidavits
and exhibits which were still being opened on Friday 18 April 1997. The matter
then hadto be adjourned and taken up again on Tuesday 6 May and continued on
Wednesday 7 May. The following affidavits were opened, contained in books 1, 2
and 3; the four affidavits of William O'Grady; the four affidavits of John
Cornally; the two affidavits of David Byrne; the two affidavits of Peter
Thornton and there were many exhibits referred to therein. The time lag in the
middle of the hearing obviated the necessity for a ruling in respect of the
late production of certain affidavits, as the interval ensured a reduction in
any element of surprise. During the adjournment, the situation was held in
status quo by an undertaking given on behalf of the defendant.
The
Plaintiff company is a supplier of toiletries to hotels and airlines. By an
agreement made in July 1994 the defendant Seamar Limited agreed terms with the
plaintiff to supply certain products in the fashion market to the plaintiff for
distribution in the amenities market, ie, mainly hotels and airlines.
It
is common case that the contract made in July 1994 governed the relationship
between the parties and the contract provided for a six month period for a
notice of termination and also provided for a 30-day credit facility. It also
contained provisions in respect of the price of the products. The terms of the
agreement are to be found in book 1, tab 8(a) at the back of exhibit JC1. I
quote paragraph 2 in the Proposal and paragraphs 1, 2, 5, 7, 8, 9, 10, 12, and
13 in the Minimum Requirements part of the document as these seem to me to be
particularly relevant. I should add that several differing copies of this
clause have been produced in the course of the careful and diligent arguments
of Counsel. Since the photocopy at tab 8(a) in book 1 is quite difficult to
read, it seems to me that an agreed clean copy should be initialled by the
solicitors and handed in so as to avoid any future confusion. Paragraph 2 in
the Proposal part of the document reads:
"Agreement
to provide finance for surplus stock estimated at maximum of £50,000 by
way of reduced credit while stocks last, this to be implemented not later than
1 October 1994."
Under
the Minimum Requirements part of the document, paragraph 1 reads: "30 days
credit." Paragraph 2 reads:
"HDPE
bottles; 25ml-30ml to be included in costings at 1.2p (now 1.28p per 20 equals
1.6p) . HDPE caps, 25ml-30ml to be included in costings at 1.2p. The screen
printing of plastic bottles to be included in costings at 0.8p per pass."
Paragraph
5, which is critical, reads:
"Supply
new 7 ml Gucci Pour Momme aftershave at a maximum of 22.5p per unit and EDT at
25p."
Paragraph
7 reads:
"To
provide for labelling bottles at 0.8p in the costings."
Paragraph
8 reads:
"No
further review of margin percent for two years."
Paragraph
9 reads:
"Premier
to control moulds purchased by Premier."
Paragraph
10 reads:
"Not
to engage in the amenity sector of the market."
Paragraph
12 reads:
"To
recognise that increased sales at lower cost but fixed percentage margin is
beneficial."
Paragraph
13 reads:
"Quarterly
review meetings to be held and to include TC Johnson."
That
is a reference to Mr Terry Johnson of Johnson Brothers. It is perhaps to be
regretted that the quarterly review meetings to include Mr Johnson apparently
did not take place1 as these might have prevented the conflict which arose by
enabling the parties to have a forum to discuss and overcome differences as
they came about and to sort them out in a practical and businesslike way to the
mutual benefit of the parties, especially as there is a very considerable
interdependence between these companies in their business.
It
was also common case, arising from the previous history and a prior agreement,
that a six month period of notice was required for termination. This is
explicable in the context of the defendant being the plaintiff's main supplier
and the need for certainty in the supply of products for distribution to the
large customers of the plaintiff. No such notice has been served and the supply
of products enabling annual sales of £2 million per annum has continued,
although laterally on foot of the defendant's undertaking to continue these
supplies.
The
matters in contention are ostensibly in respect of a narrow range of products
which constitute the bulk, about 75% in value, of the business, being the Gucci
items. Unhappily, the differences over the pricing of these four products have
eroded trust between the parties and their capacity to meet and find a way of
overcoming the difficulties over these four products, although they are only
four out of a range of about 40 products.
I
propose to answer the following questions: First, has the plaintiff made out
that there is a real and fair issue about the enforceability of the July 1994
agreement, especially in respect of the pricing of the disputed range of Gucci
products? Secondly, where lies the balance of convenience? Thirdly, would
damages be an adequate remedy in the circumstances of this case?
It
is agreed that the principles of law involved in the main are succinctly set
out in John Farrell's Irish Law of Specific Performance. At paragraph 2.09, I
quote:
"Interlocutory
relief is intended to maintain the status quo until the trial and to do no
more. The grant of an interlocutory injunction is a remedy that is both
temporary and discretionary. No rights are determined nor are issues decided.
The object of the injunction and other interlocutory relief is to permit the
just realisation of the plaintiff's claim if he is successful. In interfering
by interlocutory injunction the court does not in general profess to anticipate
the determination of the right, but merely gives the opinion that there is a
substantial question to be tried and that a case has been made out for the
preservation of the property in (status quo) pending the trial. The court's
jurisdiction is not restricted to actual breaches of contract; it also has
jurisdiction to restrain an apprehended or threatened breach. The application
for an interlocutory injunction is often treated by consent as the trial of the
action. When that happens, the rights of the parties are finally determined on
the interlocutory motion. There seems to be no significant difference in the
law in this country and that of England and Wales as to the principles that
should be applied by the court in granting or withholding an interlocutory
injunction save that the constitutional rights of any of the parties to the
action under the Irish Constitution cannot be abridged by the order."
I
have also taken cognisance of the principles as explained in paragraphs 2.10,
2.11 and 2.12. I think it would be helpful if I also quote these as they are a
clear and pithy statement of the principles which I have sought to apply to the
facts of this case.
Paragraph
2.10 reads:
"The
first question for the court to determine in an application for an
interlocutory injunction where the claimant's right or its violation is
disputed is whether he has shown that "a fair question" arises for decision by
the court on the trial of the action in due course. It frequently happens that
neither the applicant's right nor the fact of its violation is disputed by the
person whose acts are sought to be restrained; in such a case an injunction may
be given almost as of course. There are cases where a breach of contract in
issue is so clear or the party attempting to resist the application for the
interlocutory injunction so devoid of merits that the court should immediately
provide a remedy by way of injunction. In very many other cases -- the right,
the fact of its violation or both those points are contested. Then the issue of
"a fair question" does arise. Tests applied by judges in recent times such as
"that there is a fair question raised to be decided at the trial", "a serious
question of law arose", that there is a substantial issue to be tried" and
"that there is a serious question to be tried" are essentially the same. In a
later case, Finlay CJ has used phrases "whether the plaintiffs have . . .
raised an arguable case" and "if it could be asserted as an arguable case",
while also making it clear that he was applying the principles laid down by the
court in the Campus Oil case. There is no inconsistency; whether there is an
"arguable case" is to be judged in the light of the principles in the Campus
Oil case.
Formerly,
the position was less clear on the "fair question" point and the majority
opinion seems to have been that a plaintiff had to show on an interlocutory
application that he probably would succeed at the trial. In the Campus Oil
case, the probability test was rejected by O'Higgins CJ. He pointed out that
the application of that criterion on a motion for interlocutory relief would
involve the court in a determination of an issue which properly arises for
determination at the trial of the action."
Paragraph
2.11 reads:
"When
the party seeking an interlocutory injunction has raised a fair question to be
tried at the hearing of an action in which, if he succeeded, he would be
entitled to a permanent injunction the court should not express any view on the
strength of the contending submissions, but should proceed to consider the
other matters which then arise in regard to the granting of an interlocutory
injunction. Normally it is undesirable that a court should come to firm
conclusions in its judgment on an interlocutory application. In many cases
where the courts have considered the principles applicable in granting or
refusing an interlocutory injunction stress has been laid on the difficulties
facing the court when the facts are disputed and it is not possible to resolve
such a conflict by a perusal of the affidavits. In such circumstances, it is
inadvisable for the court to express a view as to the probable outcome of the
proceedings when they go to plenary hearing or to base a decision as to
interlocutory relief on a forecast of such probable outcome.
O'Higgins
CJ explained the approach of the courts:
"In
cases where rights are disputed and challenged and where a significant period
must elapse before the trial, the court must exercise its discretion (to grant
interlocutory relief) with due regard to certain well-established principles.
Not only will the court have regard to what is complained of and whether
damages would be an appropriate remedy bat it will consider what inconvenience,
loss and damage might be caused to the other party, and will enquire whether
the applicant has shown that the balance of convenience is in his favour."
Lord
Diplock has also explained:
"The
object of the interlocutory injunction is to protect the plaintiff against
injury by violation of his right for which he could not be adequately
compensated in damages recoverable in the action if the uncertainty were
resolved in his favour at the trial; but the plaintiff's need for such
protection must be weighed against the corresponding need of the defendant to
be protected against injury resulting from his having been prevented from
exercising his own legal rights for which he could not be adequately
compensated under the plaintiff's undertaking in damages if the uncertainty
were resolved in the defendant's favour at the trial. The court must weigh one
against another and determine where "the balance of convenience" lies."
The
potential inconvenience to the plaintiff must be greater than that to the
defendant and the onus of proof is on the plaintiff. The phrase "balance of
convenience" has been described as "simply a useful shorthand expression"
pointing out that a number of factors should be taken into account and these
are usefully embraced under the general rubric 'the balance of convenience'.
Accordingly, it may be said that the two material questions in the great
majority of claims for interlocutory injunctions are whether the applicant has
made a fair case and where the balance of convenience lies.
A
vital matter for consideration in relation to the balance of convenience is
whether, if the plaintiff is refused an interlocutory injunction but succeeds
at the full hearing, he could be adequately compensated in damages. That point
itself may raise two questions. One is whether damages would be an adequate
remedy; the second is whether there is a defendant liable to pay such damages
who is able to pay them so that the compensation could actually be realised.
The facts that individuals might be unable to pay and that an organisation such
as a trade union might have some immunity or that the party expected to pay may
show that in fact he has no liability in law for the loss will be taken into
account. The fact that a plaintiff's right to compensation in the event of his
ultimate success is not conceded may be a factor in a decision to grant or
withhold an interlocutory injunction. A plaintiff usually has to establish the
inadequacy of damages as a remedy "for the purposes of an interlocutory
injunction" and, if the case goes to plenary hearing, he must be able to
discharge a similar onus then. The fact that a claim relates to ascertainable
sums of money does not always make damages a sufficient remedy. For example,
non-payment of plaintiffs wages and salaries, having regard to their particular
personal circumstances, may cause hardship, distress and anxiety constituting
substantial prejudice and injury over and above the fact of non-payment.
The
next point to be considered is whether, if the interlocutory injunction is
granted but the defendant succeeds at the full hearing, he can be compensated
adequately for any loss suffered by a combination of the undertaking which must
necessarily be given in order to obtain the interlocutory injunction and any
separate claim he may have against the plaintiff by way of counterclaim or
otherwise. If the undertaking as to damages is not worthwhile, even without
default on the plaintiff's part, that is an important factor against granting
the interlocutory injunction."
I
have read all that at such length because those are the principles which I have
sought to apply to the facts of this case and it seems to me that Mr Farrell
has made a clear and pithy statement of the principles involved. I also want to
make it clear that, while I make certain findings with regard to the contents
of the affidavits as before me, I am not making any final determination of any
of the issues, I merely make those findings for the purpose of applying the
criteria set out above.
From
the affidavits, I accept that Clause 5 of the agreement made in July 1994
stipulated that the defendant was to supply new 7.5ml Gucci aftershave at a
maximum of 22.5p per unit and EDT at 25 pence. I accept that Mr Cornally wrote
in "lable (sic)". I infer that this was to indicate that products referred to
in paragraph 5 were products with labels. The six months' notice of termination
dealt with in Mr Johnson's letter of 6 July 1994 and Clause 9 of the contract
in respect of moulds are both significant and they are indicative that all
parties were aware of the need to avoid or at least to reduce the problems
which a disruption of the supply of products would cause.
Sensibly,
the dispute over the pricing of the Gucci products was referred to a management
consultant, Mr Alley, to try to resolve the conflicts which had arisen in
respect of the defendant charging higher prices than the plaintiffs contended
had been agreed. The plaintiff refused to pay and, indeed, made deductions in
respect of what the plaintiff regarded as overpayments once the price increases
were appreciated.
The
plaintiff contends that the outcome of the arbitration should have been
binding. However, it is clear that the defendant does not accept the pricing as
suggested by the arbitrator. Indeed, by December 1996 the plaintiff had brought
in Dunne and Bradstreet to apply pressure with the threat of legal proceedings
in respect of the disputed amounts and the sums which the plaintiff had
deducted from the defendant's statement of accounts sent.
Relations
deteriorated to the point where Mr Cornally wrote the letter of 14 February
1997, see Tab 4g. There is a conflict as Mr O'Grady refutes many of the
allegations, especially about any suggestion that the plaintiff does any
manufacturing of products covered by the July 1994 agreement. His refuting of
this is perhaps confirmed by the plaintiff's need to ensure the continued
supply of products from the defendant. The tone of the defendant's letters is
threatening. See, for example, the fax of 10 March 1997 at tab 8D. I am
inclined to ask why were quarterly review meetings as agreed not actually
sought? My impression from all the affidavits is that the plaintiff was
prepared to consider price increases and sought information on costings and at
times, agreed reasonable cost increases in respect of other products. This
seems to be confirmed by the plaintiff agreeing to arbitration in respect of
the prices for the four Gucci products. I note in passing that no step was
taken by the defendant to set aside the award of the arbitrator. On the other
hand, I am aware of the suggestion that the defendant perhaps only regarded Mr
Alley's role as an advisory one.
This
dispute has been going on since 1994 over the Gucci product prices. In the
background, there was the remedy of a six months' notice of termination. This
was never used and the symbiotic relationship of the two companies continued
with the parties struggling on. The defendant is the only source at present for
the supply of these products and holds the plaintiff's moulds under licence.
This appears to be the reason for the six months notice, so as to enable
arrangements for an alternative source of supply to be set up in the event of
termination. While the injunction sought is in the nature of a mandatory
injunction to continue the supply of product until the hearing of the action,
or for six months after a termination notice, nevertheless I accept the
arguments that this is necessary to maintain the status quo ante until the
issues are tried. I am impressed by the arguments on the lines of those
accepted in respect of spare parts by McCracken J in Barlo Farm Machines Ltd,
(unreported judgment of 24 October 1996), about the need to preserve the status
quo in respect of the continuity of supply of a product or, in that case,
repair parts. I also think the loss, if the plaintiff's customers are not
supplied, would be very difficult indeed to assess and very probably
incalculable.
As
to the suggestion that the plaintiff agreed to increase prices on the Gucci
range by payments made on costing sheets showing increased prices, the
plaintiff strongly and consistently has maintained that once these increases
were appreciated, then deductions were, for what the plaintiff regarded as
excess payments, duly made and notified to the defendant. While some variation
of the July 1994 agreement could be negotiated, I have doubts about the reality
of the suggestion that there were varied agreements on the pricing of the Gucci
products by virtue of Seamar's costing sheets and some payments on foot thereof.
There
seems to me on the affidavits opened to me -- but I do not decide this in the
absence of hearing oral testimony -- to have been a lack of agreement on the
plaintiff's part to variations in the pricing in relation to the four products.
From studying such payments as were made, it seems to me, once the plaintiff
adverted to the fact that there were what the plaintiff regarded as
overpayments, the plaintiff proceeded to deduct those in a consistent approach
to the matter. I do not decide this aspect in the absence of hearing oral
testimony but I do take the view that the plaintiff has made out a fair case on
this aspect of the disputed pricing. Similar considerations apply in respect of
the essence price increases.
The
issue as to whether the arbitrator's findings were to be binding can await the
hearing of the action. However, since the defendant did not accept the
findings, it is not surprising that the plaintiff adhered to the consistent
line that the pricing should remain on the basis of the July 1994 agreement and
paid on this basis in respect of the four Gucci products rather than on the
basis suggested by the arbitrator. If the defendant was not prepared to accept
the arbitrator's award or findings, then it seems to me not unreasonable that
the plaintiff would say that the basic agreement of July 1994 should continue.
Since
the business of supply and distribution has been ongoing, I doubt if the
defendant is justified in regarding the sub franchise to Premier from Johnson
Brothers as being effectively at an end, as was contended. I am impressed by
paragraph 10 of Mr O'Grady's fourth affidavit. In paragraph 10, it is stated:
"I
say that the constant attempts made by the defendant to get away from the terms
of the 1994 contract in order not to be bound by them is the essence of the
dispute between the plaintiff and the defendant. I further say and believe that
the 1994 contract is the lifeblood of the plaintiff's commercial existence and
that the plaintiff cannot survive unless the defendant adheres to the terms and
conditions of the 1994 contract.
In
refusing to return to the plaintiff's possession moulds which the defendant has
acknowledged are owned by the plaintiff and which moulds the defendant has
informed the plaintiff require repair, the defendant is acting in a
deliberately constructive way and in a manner calculated to cause damage to the
plaintiff, who is thereby denied the opportunity of repairing and/or improving
upon the design of the moulds which it owns."
Without
the intervention of the Court, the plaintiff is left with the scenario that
unless it pays in advance the full prices claimed by the defendants, the supply
of products will cease. I think the plaintiff's concerns about the loss of
goodwill of its big customers, if supply is cut off, are both real and
reasonable. I think that the plaintiff was entitled to be apprehensive of the
defendant's threat to contact the plaintiff's customers directly. However, this
aspect has been resolved by the defendant's agreement not to contact the
plaintiff's customers as was threatened.
I
have come to the conclusion, having taken particular note of the careful and
articulate arguments made on behalf of the defendant, that the plaintiff has
made out a satisfactory case that there is an arguable fair question to be
tried, that the balance of convenience does favour the plaintiff, that
irreparable damage would be caused to the plaintiff if the supply of the
products is disrupted because of the nature of the business with the main
source of supply, if not the only source, being the defendant and also by
reason of the type of customers of the plaintiff.
Fourthly,
I have come to the conclusion that damages would be an inadequate remedy in the
circumstances. I think that the plaintiff is entitled to have the situation
maintained in statu quo ante until the hearing on the basis of an injunction or
undertaking, if it is forthcoming, until the trial. Then it seems to me fair
that the stock allowance should be increased again to £50,000 ie, the
deduction of £25,000 unilaterally made by the plaintiff should be topped
up again. I will also hear brief arguments with regard to the alleged
£40,000 deductions made by the plaintiff in respect of the moulds. But it
seems to me, subject to that, that the plaintiff is entitled to have the
situation held until the trial of the action or until six months notice has
been validly given and the six months is up. I think that the plaintiff is
entitled to have the situation held until then in statu quo ante. Now, I
suggested that I should hear you briefly in relation to the question of the
moulds.
MR
MARRAY: I am just taking instructions on that, my Lord.
MR
JUSTICE BUDD: Yes. It was suggested that £40,000 deductions had been made.
Sorry, Miss Barrington did you want to talk to your client about that aspect of
it?
MS
BARRINGTON: I did, my Lord, briefly.
MR
MARRAY: My Lord, just in relation to the two matters that you referred to, I
think the trading allowance or the stock allowance can be restored to
£50,000.
MR
JUSTICE BUDD: Yes, I had said that should be done.
MR
MARRAY: Yes, and will be done.
MR
JUSTICE BUDD: That will be done.
MR
MARRAY: Secondly, with regard to the moulds, my Lord, we are not clear as to
the level of the deduction but the reason why any deduction was made in regard
to the moulds was that the defendant was denying that the plaintiff actually
owned those moulds. Now the defendant is apparently accepting that the moulds
are owned by the -- I may not be correct in this but the defendant is accepting
that the moulds in respect of which the deduction was made are in fact owned by
the plaintiff and that deduction will not apply but, naturally, when requested
to do so, the defendant will have to return those moulds to the plaintiff.
MR
JUSTICE BUDD: Yes, it is stated in the July agreement that the moulds are
Premier's.
MS
BARRINGTON: Perhaps I could just add to that, my Lord, I agree with what my
Friend has said, with regard to the deductions made in relation to the moulds.
Unfortunately the matter is not fully before your Lordship because it only
arose last Friday. Deductions had been made.
MR
JUSTICE BUDD: That is why I wanted to be addressed by Counsel in relation to
that aspect of it. I was concerned that I did not have the full picture with
regard to the moulds.
MS
BARRINGTON: Yes, my Lord. With regard to the deductions that have been made,
the defendant acknowledges that those moulds are the property of the plaintiff
and if their credit is restored or, rather, their deductions are cancelled, the
defendant is happy to return those moulds on payment of what is customary in
the industry and what is known as a development charge of £2,000 to which
the plaintiff . . . (INTERJECTION)
MR
MARRAY: I do not think I am accepting that.
MR
JUSTICE BUDD: This is new to me.
MS
BARRINGTON: Sorry to have caused confusion, my Lord. I think the position is
that in relation to . . . (INTERJECTION)
MR
JUSTICE BUDD: Miss Barrington, would you like a little time at this point?
MS
BARRINGTON: No, my Lord, I think the position is clear insofar as those moulds
are concerned, the defendant acknowledges that they are the property of the
plaintiff. There has been some confusion because in relation to a separate set
of moulds, there is an ongoing dispute as to ownership and that is what has
caused the confusion. But insofar as the deductions that have been made are
concerned, if they are cancelled, the moulds to which they relate will be
returned by the defendant.
MR
JUSTICE BUDD: I was told the plaintiff had made £40,000 deductions.
MS
BARRINGTON: That is correct, my Lord. When those deductions are cancelled, the
defendant will . . .
MR
JUSTICE BUDD: The plaintiff is going to cancel those deductions, isn't that it?
MS
BARRINGTON: Yes, my Lord.
MR
MARRAY: Yes, my Lord.
MR
JUSTICE BUDD: With mention of the fact that some of these moulds require
repair, the parties should sort out that sort of ongoing problem. What is the
situation? The first thing, perhaps, I should say is this, that I am conscious
of the fact that I displayed impatience at times during the hearing because I
have been told that it would take half a day and just merely opening the
affidavits took considerably longer than that; but I am very conscious of the
fact that this was a very contentious case and that both Counsel were making
diligent and eloquent submissions in what I say was a very contentious case and
I have been greatly assisted by Counsel in the case. Where there is contention
of the sort-that there has unfortunately been between the parties in this case,
it seems to me that this type of case requires, even at an interlocutory stage,
a fairly full airing.
But
it is my fervent hope that having aired their respective versions of events and
their views about the matter that the parties may now be able to have a pause
for reflection. They are in a peculiar business relationship arising out of
these franchises and licences and I trust that the parties will reflect on
finding some method of practical business circumnavigation of the obstacles or
overcoming of the difficulties. I am aware that they have tried Mr Alley but
there may be some other way which they, perhaps with the help of Mr Terry
Johnson, will be able to devise so that they can get back the relationship,
obviously a valuable business relationship which existed between them. Now,
what is the situation because I have indicated that Mr Marray's client is
entitled to an injunction?
MR
MARRAY: In those circumstances, I would ask you for an injunction.
MR
JUSTICE BUDD: Well, is that necessary, Miss Barrington? Because of the
symbiotic relationship between these two parties, if the matter can be dealt
with by way of undertakings, that seems to me to be infinitely more desirable
in this type of case. Would you like me to give you time to consider that at
this stage or do you want to deal with it straight away.
MS
BARRINGTON: I think if your Lordship just allows me a minute to consult with my
client.
MR
JUSTICE BUDD: Yes.
MS
BARRINGTON: The defendant is in a position to give undertakings in terms of
paragraphs 1 and 2 of the notice of motion and the undertaking in terms of
paragraph 3 has already been given by the defendant.
MR
JUSTICE BUDD: Miss Barrington, Mr Cornally understands, I am sure it has been
explained to him very fully, that his giving the undertaking means that while
the Court does not make an order, the undertaking is a serious obligation on
him which must not be breached.
MS
BARRINGTON: Yes, my Lord.
MR
JUSTICE BUDD: He has the authority to give that on behalf of Seamar Limited?
MS
BARRINGTON: He does, my Lord.
MR
JUSTICE BUDD: The plaintiff has given an undertaking as to damages, I presume?
MR
MARRAY: Yes, that is given to the Court, my Lord.
MR
JUSTICE BUDD: Do you require anything further?
MR
MARRAY: I formally apply for my costs but I think it is normal in the
circumstances that the costs be reserved. That is the normal order made. But I
formally apply for my costs.
MR
JUSTICE BUDD: I suspect Miss Barrington would ask me to reserve them.
MS
BARRINGTON: I would indeed, my Lord. I think that is the appropriate order in
the circumstances.
MR
JUSTICE BUDD: I will reserve the costs although I think I should warn you, Miss
Barrington, that I do not always follow the practice. If I have heard a long
and contentious application for an interlocutory injunction, then there are
times that it seems to me that on the affidavits that a view should have been
taken as to what the outcome would be. After all, it is an issue to some extent
in itself but, in this instance, it seems to me that it is appropriate that I
should reserve the question of costs to the final outcome, not least bearing in
mind the living together relationship that these two companies have had and
which must continue. An award of costs between those in a quasi 'husband and
wife' relationship, as the companies are in this case -- they are bound
together almost as Siamese twins -- can certainly damage and cause difficulty
from the point of view of the parties trying to make a fresh start and review
the difficulties and find ways of overcoming them. It may be that Mr Johnson or
someone else can assist them in relation to finding a way in which to work out
a modus vivendi. Anyway, they are both practical and experienced businessmen
and they know a lot more about their business than I do and the ways in which
they and their business colleagues devise to resolve difficulties of this sort
so that they can both get on with the practical business of producing and
selling these products; they are obviously good businessmen. Now, do I need to
make any further order?
MR
MARRAY: I don't think so, my Lord. I would just like to say that both myself
and Miss Barrington are very much obliged to your Lordship for staying with the
case, my Lord.
MR
JUSTICE BUDD: I am very aware of the great care and diligence and eloquence
with which the arguments have been presented in this case and the huge amount
of work which both Counsel have done.