Baker Tilly International (BTI) has won a breach of contract battle with a former United Arab Emirates accounting partnership which it had licensed to use the BTI brand
A judge at the High Court has awarded BTI summary judgment without the need for a full hearing in an action against UAE-based Baker Tilly MKM and MKM partner, Al Rubaie.
Under an agreement signed in 2008, MKM began using the Baker Tilly brand and was admitted as a member of BTI.
Deputy Judge Kevin Prosswer QC said in his High Court decision that the agreement entitled MKM to use the Baker Tilly name, call itself Baker Tilly MKM and use the network’s bird logo.
However, in February 2013 MKM’s membership was terminated along with their rights to use the name and the logo.
The judge said : ‘The defendants are continuing to use the trade marks. For example, I was shown an extract from a website (updated as at 15 March 2015) describing itself as “Baker Tilly MKM’s website”, which says “We are Baker Tilly MKM” and says “Baker Tilly MKM was established in 1979 as ARCA (Al Rubaie Chartered Accountants)”.
Awarding Baker Tilly summary judgment the judge said : ‘I have no doubt that in continuing to use the trade marks the defendants are guilty of a breach of contract.’
The defendants had launched a nine- point defence against Baker Tilly’s claim against them.
They claimed that the dispute should be dealt with by the UAE courts; that BTI has no rights in or over the trade marks; that the reasons for termination of the agreement with MKM did not fall within possible reasons set out in the agreement; and that BTI was in breach of contract itself for acting in bad faith and that MKM was entitled to compensation.
However, the judge said : ‘I have no doubt that the defence has no prospect of success on any of the grounds relied upon.’
MKM’s final ground was that they were no longer acting in breach of contract.
But the judge said: ‘This is not true. They are continuing to use the trade marks.’
He said that in these circumstances, he considered BTI was entitled to summary judgment and to the declaratory and injunctive relief it sought.