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Six Continents Hotels Inc v Event Hotels Gmbh

The defendant had failed to show that it had been induced to enter into a franchise agreement by misrepresentation and the claimant was entitled to judgment for unpaid licence fees and contractual termination payments.

29 September 2006

The claimant hotel company (S) claimed unpaid fees due from the defendant German hotel company (E) under trade mark licence agreements for hotel services, and E counterclaimed for damages for misrepresentation. S was the owner of the Holiday Inn trade mark, which it had licensed to E for the operation of Holiday Inn-branded hotels in Germany. E fell behind with the payment of amounts due to S, and S terminated the agreements. S claimed for unpaid fees and termination payments due under the contracts. E claimed that it had been induced to enter into the last of the agreements by misrepresentations by S that other franchisees in Germany did not pay lower fees than E, and that new franchisees would pay higher fees. E claimed damages that it sought to set off against the sums due to S. S submitted that no such representations had been made.

HELD: Judgment for claimant

(1) There was no support for the alleged misrepresentations in contemporaneous correspondence, and in the co...

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