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Contract caterer Kudos in £1.3m legal battle with former client

12 February 2013 by
Contract caterer Kudos in £1.3m legal battle with former client

Kudos is in a £1.3m legal battle with its former client Manchester Central Convention Centre.

The food and venue operator, part of the Crown Group, is seeking damages after the five-year £15m deal it had with the venue, previously known as the G-Mex, was cut short.

Kudos began its contract as exclusive supplier of all catering services at the centre in April 2007 but in July 2010, Manchester Central's management wrote to Kudos saying they wanted to end the agreement, according to court papers.

They said they would do so either by giving one month's notice, as outlined in the terms of their agreement, or with immediate effect because, in their view, the performance of Kudos "fell seriously short of the contractual standard required," which amounted to a "material and persistent breach of contract".

Kudos, which had to pay the venue more than 20% of all revenues as part of the exclusivity contract, lodged a claim for £1.3m against the convention centre for "substantial financial losses in respect of lost profits" it would have earned in the remaining 20 months of its deal, reported Manchester Evening News.

But the venue is contesting the catering firm's case and has lodged what has been described as a "substantial counterclaim".

The issue is set to go to trial, but the two parties have already been at loggerheads over a preliminary issue associated with the contract.

Manchester Central claims a clause in the agreement meant it was not liable for any loss of profit, but Kudos took the matter to the Court of Appeal, saying the clause being referred to was deleted from the eventual contract signed by each party.

A trio of judges have allowed the appeal, paving the way for the main trial to progress.

Both Manchester Central and Kudos were unavailable for comment.

Crown Venue Catering awarded five-year deal at Manchester's G-MEX and International Convention Centre >>

By Janie Manzoori-Stamford

E-mail your comments to Janie Manzoori-Stamford here.

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