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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> IDDQD Ltd v Codeberry Ltd & Anor [2025] EWHC 712 (Ch) (25 March 2025) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2025/712.html Cite as: [2025] EWHC 712 (Ch) |
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BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
INTELLECUAL PROPERTY LIST (ChD)
Fetter Lane, London, EC4A 1NL |
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B e f o r e :
____________________
IDDQD LIMITED |
Claimant |
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- and - |
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(1) CODEBERRY LIMITED (2) LEE PAUL SMITH |
Defendants |
____________________
Duncan MacPherson and Emma Kiver (instructed by McEvedys Solicitors & Attorneys Ltd) for the Defendants
Hearing date: 20 March 2025
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Crown Copyright ©
Judge Hacon :
Introduction
Background
The proposed amendments
'Waiver / consent / laches
59. Since around late 2015, the Claimant has:
59.1 Been aware of the First Defendant's business activities and the Second Defendant's account with the Claimant for the use of the API service of the GBR database under licence. The particulars under paragraph 36 are repeated.
59.2 Permitted the Defendants to continue with such activities in circumstances which included the technical knowledge of the Second Defendant and the small size of the market.
60. The Claimant is estopped from relying on any breaches of its licence to the Defendants and/or its database rights and/or copyright (all of which are denied).
PARTICULARS
(a) The said forbearance constituted a clear and unequivocal representation by the Claimant that it would not rely on any terms within its licence with the Defendants or any database rights or copyright that prevented the said activities.
(b) The Defendants relied upon that representation until receipt of the Claimant's letter dated 13 February 2023 by: (i) continuing to invest time into the GetAddress database and business; and (ii) by not obtaining a commercial licence from Royal Mail.
61. Further or alternatively, for the same reasons the Claimant impliedly consented the Defendant to carry out the said activities.
62. Further or alternatively, for the same reasons the Claimant's claim for equitable relief by way of injunction or otherwise in respect of any infringement (which is denied) is barred by laches. The Claimant has delayed unduly in asserting its rights (which are denied) in circumstances where the Defendants' said activities continued to the alleged detriment of the Claimant.'
The law on permission to amend a pleading
'[10] The legal framework is not in dispute and can be stated succinctly here. The starting point is CPR 17.3 which confers on the Court a broad discretionary power to grant permission to amend. The case-law is replete with guidance as to how that discretionary power should be exercised in different contexts. I need cite only two cases which taken together provide a helpful list of factors to be borne in mind when considering an application such as this: CIP Properties (AIPT) Ltd v Galliford Try Infrastructure Ltd [2015] EWHC 1345 (TCC) and Quah Su-Ling v Goldman Sachs International [2015] EWHC 759 (Comm). From those cases, I draw together the following points.
a) In exercising the discretion under CPR 17.3, the overriding objective is of central importance. Applications always involve the court striking a balance between injustice to the applicant if the amendment is refused, and injustice to the opposing party and other litigants in general, if the amendment is permitted.
b) A strict view must be taken to non-compliance with the CPR and directions of the Court. The Court must take into account the fair and efficient distribution of resources, not just between the parties but amongst litigants as a group. It follows that parties can no longer expect indulgence if they fail to comply with their procedural obligations: those obligations serve the purpose of ensuring that litigation is conducted proportionately as between the parties and that the wider public interest of ensuring that other litigants can obtain justice efficiently and proportionately is satisfied.
c) The timing of the application should be considered and weighed in the balance. An amendment can be regarded as "very late" if permission to amend threatens the trial date, even if the application is made some months before the trial is due to start. Parties have a legitimate expectation that trial dates will be met and not adjourned without good reason. Where a very late application to amend is made the correct approach is not that the amendments ought, in general, to be allowed so that the real dispute between the parties can be adjudicated upon. A heavy burden lies on a party seeking a very late amendment to show the strength of the new case and why justice to him, his opponent and other court users requires him to be able to pursue it. The timing of the amendment, its history and an explanation for its lateness, is a matter for the amending party and is an important factor in the necessary balancing exercise: there must be a good reason for the delay.
d) The prejudice to the resisting parties if the amendments are allowed will incorporate, at one end of the spectrum, the simple fact of being "mucked around" to the disruption of and additional pressure on their lawyers in the run-up to trial and the duplication of cost and effort at the other. The risk to a trial date may mean that the lateness of the application to amend will of itself cause the balance to be loaded heavily against the grant of permission. If allowing the amendments would necessitate the adjournment of the trial, this may be an overwhelming reason to refuse the amendments.
e) Prejudice to the amending party if the amendments are not allowed will, obviously, include its inability to advance its amended case, but that is just one factor to be considered. Moreover, if that prejudice has come about by the amending party's own conduct, then it is a much less important element of the balancing exercise.'
Judgment of Master Pester
'i) The proposed application is late in the sense that allowing the new pleaded case, and in particular paragraph 60, would require further disclosure and evidence and in effect put the trial date at risk. There is insufficient time for these steps to be carried out. Even if I am wrong on that and they could theoretically be carried out in the time available, they would inevitably severely disrupt the preparation for trial and require the parties to revisit matters, namely disclosure and the provision of evidence, which they have already done.
ii) The amendments are also late, in the sense they could have been raised earlier in the proceedings and were not. No proper explanation has been provided for the delay in making the application, and the defendants were aware of the matters on which they now rely since at the latest January 2024, allowing some time for them to review with their legal team the documents disclosed by RMG following the compliance with the SAR.
iii) As Popplewell LJ indicated in Kawaskai [sic] Kisen Kaisha Ltd v James Kemball, an application to amend must raise a real prospect of success, be coherent and properly particularised, and any pleading must be supported by evidence which establishes a factual basis which meets the merit test and it is not sufficient simply to plead allegations which, if true, would establish a claim. There must be evidential material which establishes a sufficiently arguable case that the allegations are correct. At the moment, the pleading does not meet this standard, although I accept that it is possible that if the defendants went back to the drawing board they might be able to come up with something which met the threshold of a real issue to be tried. However, at the moment, they have not crossed that threshold.'
The nature of the appeal
'[21] The principles applied on appeal from the exercise of discretion have been addressed in many cases. I will only refer to the useful recent summary by Saini J in Azam v University Hospital Birmingham NHS Foundation Trust [2020] EWHC 3384 (QB):
"50. An appellate court will only interfere with a discretionary evaluation where an appellant can identify one or more of the follows errors:
(i) a misdirection in law;
(ii) some procedural unfairness or irregularity;
(iii) that the Judge took into account irrelevant matters;
(iv) that the Judge failed to take account of relevant matters; or
(v) that the Judge made a decision which was "plainly wrong".
51. Error type (v)… means a decision which has exceeded the generous ambit within which reasonable disagreement is possible.'
52. …The appellate court's role is to police a very wide perimeter and it will be rare that a judge who has exercised a discretion having regard to relevant considerations will have come to a conclusion outside that perimeter… It needs to be underlined that an appellate court in an appeal such as the present is exercising a CPR 52.21(1) "review" power. It is also well-established that the weight to be given to specific factors is a matter for the trial judge and absent some wholly unjustifiable attribution of weight, an appellate court must defer to the trial judge."'
Grounds of Appeal
Ground 1
'[41] For the amendments to be allowed the Appellants need to show that they have a real as opposed to fanciful prospect of success which is one that is more than merely arguable and carries some degree of conviction: ED&F Man Liquid Products Ltd v Patel [2003] EWCA Civ 472 A claim does not have such a prospect where (a) it is possible to say with confidence that the factual basis for the claim is fanciful because it is entirely without substance; (b) the claimant does not have material to support at least a prima facie case that the allegations are correct; and/or (c) the claim has pleaded insufficient facts in support of their case to entitle the Court to draw the necessary inferences: Three Rivers District Council v Bank of England (No3) [2003] 2 AC 1.
[42] The court is entitled to reject a version of the facts which is implausible, self-contradictory or not supported by the contemporaneous documents and it is appropriate for the court to consider whether the proposed pleading is coherent and contains the properly particularised elements of the cause of action relied upon. With that test in mind, I turn to the grounds of appeal.'
'30. … IDDQD had never contacted me about my accounts except for a sales email in May 2022 from a Mr. Nick Mercer of IDDQD to the Company … where he invites us to have a chat and says that their products have moved on since 2015 … They also asked to audit our use in 2022. I did not respond. They obviously had full records and were aware of our use in real time. I was not sure they had the right to audit anything so I did not respond and they did not pursue it. So at no time before the first letter on 13 February 2023, did I think anything was amiss with the use or operation of the accounts or the pay as you go look up fees we were paying. They closed the accounts that same month.'
'37. … I have read the witness statement of Mr. Smith, which was served after the present application was made, and represents the evidence Mr. Smith is to give at trial. Paragraph 30 is the only paragraph relied upon by the defendants as factual evidence said to be in support of the proposed defence of waiver/consent/acquiescence.
38. In my view, it does not go nearly far enough in order to substantiate the plea of estoppel, or indeed waiver/consent/acquiescence.'
'[51] Ultimately, I do not consider that I need … to rule positively that the defendants would not be able to establish even a serious issue to be tried.'
'[63] Fourthly, in so far as the respondents' argument is put on the basis of estoppel, they would have to establish that it would be in some way unconscionable for Mr Fisher now to insist on his share of the musical copyright in the work being recognised. As Robert Walker LJ said in Gillett v Holt [2001] Ch 210, 225 D, "the fundamental principle that equity is concerned to prevent unconscionable conduct permeates all the elements of the doctrine" of estoppel. Given that their case at each of the three stages is based on the fact that Mr Fisher did not raise his entitlement to such a share, one would expect the respondents to succeed in estoppel only if they could show that they reasonably relied on his having no such claim, that they acted on that reliance, and that it would be unfairly to their detriment if he was now permitted to raise or to enforce such a claim. As was also said in Gillett v Holt [2001] Ch 210, 232D, the "overwhelming weight of authority shows that detriment is required" although the "requirement must be approached as part of a broad inquiry" into unconscionability.'
'[50] It seems to me what the defendants have pleaded [is] actually not very clear. The opening words of paragraph 60(a) pleads that, "the said forbearance constituted a clear and unequivocal representation...". This seems to me at least to be muddled, because it appears to blur the distinction between a representation and a forbearance; forbearance, as I understand it, being in the nature of acquiescence.
[51] … It seems to me that the defendants' pleaded case has in its existing form real difficulties. This is because, as pleaded, the defendants' conduct by continuing to invest time into the GetAddress database and business and the failure to obtain their own commercial licence from RMG are at least as consistent with the defendants' simply continuing with their (alleged) acts of infringement and breach of contract as long as they felt they could get away with it, rather than being based on any reliance on the alleged "representation" by forbearance, as pleaded at paragraph 60(a). The defendants have not even pleaded that they believed that they were free to carry out the acts complained of. Had this application not been made so close to trial, I would otherwise have been minded to give the defendants an opportunity to improve their pleading.'
Ground 2
'[64] Fifthly, laches is an equitable doctrine, under which delay can bar a claim to equitable relief. In the Court of Appeal, Mummery LJ said that there was 'no requirement of detrimental reliance for the application of acquiescence or laches': [2008] EWCA Civ 287, para 85. Although I would not suggest that it is an immutable requirement, some sort of detrimental reliance is usually an essential ingredient of laches, in my opinion. In Lindsay Petroleum Co v Hurd (1874) LR 5 PC 221, 239, Lord Selborne LC, giving the opinion of the Board, said that laches applied where "it would be practically unjust to give a remedy", and that, in every case where a defence "is founded upon mere delay … the validity of that defence must be tried upon principles substantially equitable." He went on to state that what had to be considered were "the length of the delay and the nature of the acts done during the interval, which might affect either party, and cause a balance of justice or injustice in taking the one course or the other, so far as relates to the remedy."'
Ground 3
Ground 4
Ground 5
'[34] … It seems to me that however the amendment is described, whether as "waiver/consent/acquiescence" or perhaps more properly as estoppel, this is likely to be a highly fact-sensitive issue. Estoppel as an equitable doctrine requires a close examination of the relevant facts, not least because it must be found to be unconscionable to allow a party to go back on a representation. The state of mind of the parties and what they understood was being represented is also highly material. The draft order accompanying the application to amend makes no provision for the exchange of any further disclosure or evidence.'
Ground 6
'[41] I accept that the proposed amendments of waiver/consent/laches are potentially at least very important to the defendants, because if they were allowed they might present a complete defence to the claim. However, their importance only serves to highlight the defendants' failure to raise the issue earlier. The defendants issued various applications in relation to strike-out and disclosure throughout 2024, but no proper explanation in my view has been provided by Ms. McEvedy as to why the application in relation to waiver/variation/acquiescence was not made earlier.
[42] It seems to me therefore that taking into account the inevitable disruption to the timetable, the fact that the defendants could have sought permission to introduce these amendment earlier and failed to do so, and that no convincing explanation has been provided for the lateness of the application, these are all factors which strongly point towards refusing the application to amend.'
Conclusion