EWHC 346 (QB); [2009] All E.R. (D) 08 (Mar)

Citation: EWHC 346 (QB); [2009] All E.R. (D) 08 (Mar)

Nature of case:
The Court was required to interpret the provisions of an Introducing Broker Agreement (“IBA”), between Byblos and IFX, under which certain of Byblos’ “Associated Employees” would operate within IFX’s organisation, with the profits from the activities of those employees to be split evenly between the parties, those activities being in relation to clients introduced by Byblos.  Byblos argued that:

  1. their entitlement to profits should extend to profits generated by other parts of IFX’s organisation in respect of internal trades with Associated Employees.
  2. they were entitled to a share of the profits generated by internet trades undertaken by clients introduced by Byblos, regardless of the fact that Associated Employees had no involvement in those trades.
Simon J ruled that the first part of Byblos’ claim failed, as it did not reflect the wording of the IBA, good business sense, or the parties’ clear understanding of the IBA’s effect.  The second part of the claim succeeded, notwithstanding the difficulty of calculating Byblos’ loss, and the fact that the Associated Employees had not been involved in the transactions.

Counsel

  • Share