DEFENDANT ORDERED TO PAY REASONABLE SUM FOR BREACH OF SETTLEMENT AGREEMENT

Experience Hendrix LLC v PPX Enterprises Inc [2003] EWCA Civ 323; [2003] All ER (D) 328 (Mar)

The Court of Appeal in Experience Hendrix LLC v PPX Enterprises Inc [2003] EWCA Civ 323; [2003] All ER (D) 328 (Mar) affirmed that defendants will rarely be required to account for all of the profit which they make from a breach of contract. In this respect the decision of the House of Lords in Attorney-General v Blake [2001] 1 AC 268 is an exceptional case. But the jurisdiction of the court to order the defendant to pay a reasonable sum for the use of material obtained in breach of contract (or to pay a reasonable sum in respect of a breach of a restrictive covenant) is of much wider ambit. In so concluding the Court of Appeal has breathed new life into the decision of Mr Justice Brightman in Wrotham Park Co Ltd v Parkside Homes Ltd [1974] 1 WLR 798.