High Court dismisses resale price maintenance case at trial

29/04/10

On 29 April, following a 3-day trial, Norris J dismissed a resale price maintenance defence and counterclaim raised by Mail Order Cycles Limited against Raleigh UK Limited.   The defence and counterclaim had been raised in response to a debt action by Raleigh.  The defence rested on a series of alleged oral discussions and certain emails between the parties.  Norris J found that the main Mail Order Cycles witness at trial lacked credibility and that the actions of Raleigh, at most, amount to lawful recommended retail prices.  He further found that even if resale price maintenance had been proven, the debt action was unaffected since the offending term would have been severable from the rest of the contract and that there remained valid consideration for the remaining contractual rights and obligations.