By John McElroy, Duran Ross12 July 2021
In Brown-Forman Beverages Europe Ltd v Bacardi UK Ltd [2021] EWHC 1259 (Comm), the Commercial Court held that Bacardi UK Ltd was not required to pay approximately £51m to Brown-Forman Beverages Europe Ltd under surety obligations that Bacardi UK owed to Brown-Forman on behalf of its subsidiary Bacardi-Martini Ltd.
John McElroy
Duran Ross
In 2016, Bacardi-Martini and Brown-Forman entered into an agreement under which they agreed to share costs in relation to the provision of services. Clause 6.2 provided: ‘[Bacardi UK] agrees to indemnify and hold [Brown-Forman] […] harmless from and against and in respect of any and all losses, liabilities, claims, judgments, expenses, costs […] and settlements incurred in connection with any failure by [Bacardi-Martini] to timely fulfil its payment obligations to [Brown-Forman] […] under this agreement.’