Hard Rock court case rumbles on

Saturday 08 April 2017

A long-running legal battle involving a locally registered company and the Hard Rock group of companies has taken another twist, with the defendant countersuing the plaintiffs, and the Royal Court saying the defendant does have the right to see previously secret documents.

In June 1999 HRCKY Limited signed a franchise deal with the Hard Rock group of cafes and another branch of the company that leases memorabilia to set up a branch in the Cayman Islands.

The plaintiffs terminated the franchise in 2013, and later took HRCKY to court claiming they were owed money.

HRCKY then counterclaimed for alleged misrepresentation and breach of contract. But the court agreed the franchise had been legally terminated and HRCKY did owe money. Now the case has come back to court because HRCKY claim they haven’t had access to documents that would show the plaintiffs didn’t act in good faith.

Although previously refused permission to look at the documents, HRCKY has now won an appeal. The judge, Commissioner Sir Michael Birt, concluding: “I am satisfied that disclosure of documents concerning the performance of the corporate cafes in St Juan, St Thomas and Key West is relevant to the issues raised in the counterclaim and it is necessary and proportionate to order their disclosure”.

The decision could lead the defendant to pursing its claim that the plaintiffs did not act in good faith.