£50,000 High Court Damages Action
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TUDGMENT was reserved in the High J Court, last week, on an Official Referee's decision that a company director should pay £50,000 damages for breaking a covenant not to operate Continental coach tours for seven years after selling his companies.
The British Electric Traction Co., Ltd., Stratton House, Piccadilly, London, W.1, sought judgment for the amount assessed by the Referee against Mr. Thomas Edwin Langton and Luxury Land Cruises, Ltd., Piccadilly, London, W.1, from whom B.E.T. bought the companies for £126,000 in 1953. B.E.T. alleged that the covenant had been broken between 1955-57.
In December, 1957, by consent, a High Court order was made restraining Mr. Langton from engaging in Continental coach tours. The question of damages was referred to Mr. W. K. Carter, Q.C., the Referee, but the defendants challenged his report regarding liability and damages.
Mr. Roy. Wilson, Q.C., for the defendants, submitted that the covedant was not intended to apply 'to foreign coaches or coaches operating abroad. All that the parties had in mind Was the use of vehicles from Victoria, London, to Dover or Harwich. • • He also contended that the wording of the 'covenant was too wide. It amounted to an unreasonable restraint of trade, and made the • contract .void. The Referee's assessment Of damages was not justified On the evidence, he: .submitted.
Mr. John Megaw, Q.C., for B.E.T., said that, the Referee; who foundthat there, had been a deliberate, calculated and dishonest breach of covenant by Mr. Langton, .had given clear and unassailable. reasons in his report for arriving at his assessment.
Mr. Langton, who sold the. business of Blue, Cars to B.E.T., was alleged .subsequently • to have operated Continental tours under the name of Sky.• Tours. Justice Pearson Said that he might need "a little time" to coriSider the ease..