New Judgment: Inveresk plc v Tullis Russell Papermakers Limited  UKSC 19
05 Wednesday May 2010
On appeal from: 2009 CSIH 56
On 9 June 2005, Tullis Russell entered into an asset purchase agreement with Inveresk for the acquisition of the property rights to the Gemini brand of paper. There were two issues arise in the appeal: Firstly, whether the additional consideration claimed by Inveresk has become due and payable under the Asset Purchase Agreement. Secondly, whether Tullis Russell is entitled to retain the sum it claims in damages, pending resolution of the claim, against any payment it is required to make to Inveresk.
The Supreme Court unanimously allowed the appeal, holding that the additional consideration has not become due and payable pursuant to the Asset Purchase Agreement and that a right of retention may in principle arise. The matter was remitted to the commercial judge for further procedure.