Third Audit
”), but the parties disagreed about the extent of the rights granted by clause 5, and so the Third Audit has not yet been carried out. 6.Pixdene brings a claim seeking remedies of specific performance (requiring Paddington to perform its obligations under clause 5 RDA) and seeking declarations of the meaning of clause 5; Paddington defends and brings a counterclaim for declarations of its own, which Pixdene defends. The Amended Particulars of Claim, Defence and Counterclaim and Defence to Counterclaim are signed by the parties with a statement of truth, and stand as evidence in these proceedings. There has been no live evidence before me, merely written and oral submissions. None of the pleadings address the factual or commercial context of the entry by the parties into the RDA or plead any facts and circumstances known or assumed by the parties at the time that the RDA was executed. Accordingly the only context for the entry by the parties into the RDA available to the Court is that which can be gleaned from the RDA itself.7.It is convenient to note here that Pixdene’s skeleton argument sought to provide “factual background” about, inter alia: the purpose of the RDA and intention of the parties in entering into the RDA; the history of ownership of intellectual property rights in Paddington; the value of transactions in which such IP rights were transferred; the ownership of Pixdene and personal details about its current and previous sole shareholder; the commercial success of Paddington in particular arising out of the recent Paddington movies; and allegations about difficulties in accessing Paddington’s offices. None of this is found in the pleadings (which stand as evidence) and it should not need saying that a skeleton argument should not be used to seek to introduce evidence by the back door. It is not admissible, and I do not take it into account. 8.Pixdene is represented by Mr Philip Roberts KC and Mr Daniel Fletcher and Paddington is represented by Mr Nicholas Caddick KC. I am grateful to them all for the clarity of their submissions and their candour with the Court.B.
- Paddington
- Pixdene
- Copyrights
- Agent
- During the term of this Agreement a third party auditor may, upon prior written notice to Paddington and not more than once per every two year period, inspect the agreements and any other business records of Paddington with respect to the relevant records or associated matters during normal working hours to verify Paddington’s compliance with this Agreement.”
- Third Audit
- THE ISSUES
- the CMC
- Part B Requested Documents
- Contractual construction
- The implication of terms
- D. THE RDA
- E. DETERMINATION OF ISSUES
- Who can inspect?
- Issue 2(a) – Does clause 5 require Paddington to provide Pixdene with copies of inspected documents?
- Issue 4 – Is an audit inspection under clause 5 limited to a physical on-site inspection of documents in Paddington’s offices, during normal working hours?
- in order to
- to report
- limited disclosure right
- Issue 2(b) – Does clause 5 require Paddington to provide the third party auditor with copies of inspected documents?
- Copyrights Agreement
- and not more than once per every two year period
- Issue 7 – To what extent is Paddington entitled to redact documents seen by (a) the third party auditor; (b) Suttons Solicitors [who act for Pixdene] and any other professional advisors of Pixdene and (c) Pixdene?
- F. SUMMARY AND FORM OF ORDER
