Tynwald Mills loses court case

Dispute over profit levels

The company which owns the Tynwald Mills Shopping Complex has lost a  Summary court case with Sandpiper CI - the company which was going to acquire the business.

It was announced at the beginning of this year that Sandpiper - who are based in the Channel Island's and run a number of UK retail franchises - had bought the popular shopping complex at St Johns for an undisclosed sum.

However, the deal fell through, after it was discovered the profit levels of the complex were lower than figures which had beed advised during negotiations and which the channel Island company anticipated.

The case of breach of contract was brought by Sandpiper in respect of a figure of £165,000 they had paid as an advance on the deal. 

In his judgement, his honour Deemster Corlett says it appears the advance was some form of compensation for Tynwald Mills if the deal did not go through, as had been the intention of the parties.

However, he says in his view the agreement made it perfectly clear that the advance was repayable in full to the buyer if the accounts showed earnings before interest, tax, depreciation and amortisation of less than £600,000, and that the parties had agreed that this figure had not been reached.

He concludes that it is not a case which should be allowed to go to trial and in his judgment the Defence and Counterclaim must be struck out and summary judgment entered for £165,000.

Sandpiper say it was never their desire to end up in litigation, but their efforts to resolve matters in a sensible way had been rejected.