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When does a surety not have to pick up the tab?


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.’ ....

United Kingdom , Holmev Brunskill , Martini Ltd , Bacardi United Kingdom Ltd , Brown Forman Beverages Europe Ltd , High Court , Commercial Court , Bacardi United Kingdom , ஒன்றுபட்டது கிஂக்டம் , மார்டினி லிமிடெட் , உயர் நீதிமன்றம் , வணிகரீதியானது நீதிமன்றம் , பேகார்டி ஒன்றுபட்டது கிஂக்டம் ,