Mr H TV Ltd v ITV2 Ltd

By the beginning of June 2011, it is clear that Ms Powell was looking for an opportunity to replace the claimant as the production company for the Peter Andre programmes. She told ITV2 on the telephone and at a meeting on 20 June 2011, that Mr Andre had issues with Mr Hendricks. What those issues were was never explained to Mr Hendricks. At the meeting she suggested that a company other than the claimant be used to produce the Peter Andre programmes, but ITV2, through Ms Sarah Clarke, Director of Business and Legal Affairs, did not take her up on this suggestion.

At around the same time, on 17 June 2011, the management agreement between Ms Powell and Kerry Katona came to an end in somewhat acrimonious circumstances. The popular press picked up a rumour, which was untrue, that Ms Katona was having an affair with Mr Hendricks. He considered, with some justification that this rumour was being generated and spread by Claire Powell or people who worked for her or with whom she was on good terms. Ms Katona then consulted Max Clifford who, before his recent disgrace, was the supremo of celebrity management and he ensured that the rumour ceased.

Although attempts were made to resolve the differences between the claimant and CAN Associates/Mr Andre and there were two mediation sessions on 27 July and 9 August 2011 which seem to have made some progress towards resolution, ultimately on 16 August 2011, Mr Andre’s solicitors wrote a letter to the claimant’s then solicitors Swan Turton saying the efforts to resolve the dispute had failed. The letter referred to grossly offensive messages on Twitter about Mr Andre and his team. It concluded that Mr Andre wanted no further dealings whatsoever with Mr Hendricks or the claimant.

The Claim Form and Particulars of Claim were issued and served on 22 May 2012. The claimant’s claim was and is that the purported termination by ITV2 by its letter of 17 August 2011 was wrongful and a repudiatory breach of the Production Agreement. The claimant claimed damages consisting of the lost profits which the claimant would have earned on the licence fees for the remainder of the Term, which were estimated at £6-7 million. The claimant also claimed £549,060 under an outstanding invoice delivered to ITV2.

It was pleaded in the alternative that the Agreement was frustrated because Mr Andre and Ms Katona became unavailable to perform their services, so that ITV2 was discharged from performance. ITV2 counterclaimed the repayment of all sums paid to the claimant under section 1 of the Law Reform (Frustrated Contracts) Act 1943.