Issue 9 – Is the claim for damages statute barred?
79.The parties were in agreement that any statute bar applies only to the claim for damages, because the Limitation Act 1980 should not be applied to claims for specific performance: P&O Nedlloyd BV v Arab Metals Co and Ors (No 2) [2006] EWCA Civ 1717. I have found that such a claim does not arise, but if it had, it would have arisen when “mutual acknowledgement of the completion of [Sub-]Stage 4” occurred, on Volumatic’s own case, in 2007/2008. The limitation period for claims for breach of contract is six years (section 5, Limitation Act 1980). Therefore, in my judgment, that claim is clearly statute barred. 80.I do not accept the position, set out in Volumatic’s Reply, that a fresh cause of action arose on the expiry of the 10 year exclusive supply period – that no longer sits with how Volumatic now pleads its case. Nor does it assist Volumatic to argue that the obligation to assign the intellectual property is a continuing one – were that the case, Volumatic could wait decades before bringing its claim, and the purpose of the statute of limitations would be frustrated. I accept IFL’s submission that continuing obligations such as the duty to repair may avoid limitation periods (see Bell v Peter Browne and Co [1990] 2 QB 495 at 500E to 501F), but the obligation here is not the same: had IFL assigned the intellectual property, there would have been no continuing obligation to do so again. I am bound to follow Capita (Banstead 2011) (formerly known as FPS Group Ltd) and another v RFIB Group Ltd [2015] EWCA Civ 1310, which held at paragraph 20 (per Longmore LJ with whom Henderson LJ agreed, Gloster LJ dissenting) that Bell is to be preferred over the Midland Bank case cited by Mr Tilley. I accept Mr Popplewell’s submission that there was no continuing obligation in this case. 81.Any claim for damages is therefore time barred.
- Mr David Stone (sitting as an Enterprise Judge):
- Volumatic
- Agreement
- Pouch
- List of Issues
- Witnesses
- Background
- Warwick Meeting
- Legal Principles
- Preliminary Point
- Issue 1(a) – Did the parties have an intention to create legal relations in relation to the Agreement (alternatively Stages 2 and 3 of the Agreement)?
- Issue 1(b) – Was the Agreement sufficiently certain for it to be legally binding?
- Issue 2 – Is Volumatic estopped by convention from asserting that the Agreement (alternatively stages 2 and 3 of the Agreement) is binding?
- Issue 3 – Was the Agreement varied?
- Issue 4 – On a proper construction of the Agreement, have the conditions for assignment been satisfied?
- Issue 5 – If the conditions precedent were satisfied, did Volumatic satisfy them within a reasonable time?
- Issue 6(a) – Has Volumatic come to court with clean hands by reason of it allegedly conducting its relationship with IFL as if the Agreement were not binding on it?
- Issue 6(b) – Has Volumatic come to court with unclean hands by reason of its alleged precontractual misrepresentations?
- Issue 6(c) – Has Volumatic has come to court with unclean hands by reason of its failure to comply with its own obligations under the Agreement (including whether IFL acquiesced to the same and/or whether IFL is estopped from asserting otherwise)
- Issue 8 – Does IFL have a defence of laches?
- Issue 10 – Should the court refuse specific performance on the discretionary grounds that: (a) IFL has allegedly conducted itself on the basis that Stages 2 and 3 of the Agreement were not binding; (b) IFL has improved the Pouch at the request of Volumatic; (c) Volumatic has allegedly not complied with its own obligations under the Agreement; and/or (d) delay
- Issue 7 – Would it be inequitable to order specific performance?
- Issue 12 – Should the court order specific performance of the Agreement?
- Issue 11 – Does IFL hold the intellectual property rights in the Pouch on trust for Volumatic?
- Issue 13 – Should the Court order damages in lieu of specific performance?
- Issue 9 – Is the claim for damages statute barred?
- Issue 15 – Should IFL be ordered to grant Volumatic exclusive rights to use any know-how in respect of the Pouch?
- Conclusions
