Durham Tees Valley airport wins 4 year legal battle with bmibaby
battle with a budget airline.
of the contract were so vague and uncertain that they were unenforceable.
"repudiatory breach" of the contract.*
would have received had the airline fulfilled the remaining eight years of the
free profits and car parking receipts when bmibaby pulled out.
for breach of contract is that the innocent party is entitled to be put in the
same position as he would have been in if the defendant had not broken the contract."
also faces legal costs likely to exceed £1m.
within the industry and vindicated the three-and-a-half-years of legal action
against the airline.
had taken an airline to court over its failure to operate services from the site.
on a whim.
from the airport and local authorities who were keen to support bmibaby’s project
to "promote the region".
that it would lose £3.2m in 2006 and £2.5m in 2007.
managing director, Crawford Rix, "formed the view that the company had spread
itself too thin and should focus on fewer bases".
Term: repudiatory breach
“A repudiatory breach of contract is a breach of contract that goes to the very
root of the contract, evidences intention on the part of the party in breach that
they no longer intend to be bound by an essential term of the contract.
Breach of a fundamental term in this way entitles the innocent party to accept
the breach of contract (that is the repudiation of the contract) and bring the
contract to end, or alternately affirm the contract.
If the innocent party wishes to accept the breach and terminate the contract,
they must do so unequivocally and without undue delay. Delay in its own right
is not fatal, provided the innocent party does not do anything to affirm the contract
in the interim, and it is prudent to put it on the record that the innocent party
objects to the conduct.”