UK Court Rules Sponsors Within Rights to Terminate F1 Contract
Etihad Airways and Abu Dhabi property developer, Aldar, have won a British court ruling reversing an earlier judgement filed in favor of the Formula 1 team both had sponsored.
Etihad and Aldar had originally entered into a three-year sponsorship agreement with the Spyker Formula 1 Team in 2007. Following a change in ownership, the name of the team was changed to Force India Formula 1 Team and the car was rebranded, without the approval of the main sponsors, Etihad and Aldar, the companies argued. At that time, Etihad and Aldar terminated the sponsorship.
Today, the Court of Appeal ruled that Etihad and Aldar were within their contractual rights to terminate the sponsorship agreement.
This judgement is a reversal of the earlier decision of the High Court. Today's judgement found that Etihad and Aldar were not only entitled to terminate the contract but that Force India was in breach of their contractual obligations. The Appeal Court has also ordered that the case be referred back to the Queen's Bench Division for an assessment of Etihad's and Aldar’s damages, and ordered Force India to pay Etihad's and Aldar's costs of the proceedings.
“Etihad and Aldar are delighted with the ruling of the UK Court of Appeal in their appeal of the Force India decision, which was issued by the Queen's Bench Division of the High Court in November 2009,” Etihad Airways said in a statement.