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Applying for summary judgment... get your facts straight

22 September 2014

In the case of Global Draw Ltd v IGT-UK Group Ltd the Commercial Court refused an application for summary judgment on the grounds that the application required the court to decide on a number of factual matters which could not be determined without a trial.

The case arose in the context of a share purchase agreement (SPA) pursuant to which the claimant was to purchase the entire share capital of the defendant. As part of the SPA the defendant agreed to indemnify the claimant in respect of two ongoing claims the defendant was party to in Italy.

Following completion of the SPA a dispute arose between the parties as to the extent of the indemnities, the claimant believing that its entitlement to the indemnity was a matter of interpretation and to which the defendant had no defence.

The Commercial Court did not agree with the claimant’s position, finding that as this dispute required determination of wider factual issues it could not be resolved on summary judgment; demonstrating that a successful summary judgment application cannot involve factual issues which need to be resolved.

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