Relief From Forfeiture Granted To A Mere Licensee

In General Motors UK Limited v. The Manchester Ship Canal Company Limited 2016 EWHC 2960 (Ch) the High Court granted relief from forfeiture to a mere licensee, thereby reinstating a licence that had otherwise been validly terminated for non-payment of the licence fee. The grant of relief from forfeiture has historically been restricted to cases involving proprietary or possessory rights so this decision is one of note to both licensors and licensees

Background

In 1962 The Manchester Ship Canal Company Limited (MSC) granted General Motors UK Limited (GM) a licence, in perpetuity, to discharge surface water from GM's main manufacturing plant at Ellesmere Port into the Manchester Ship Canal. The licence reserved an annual fee of £50 and a right for MSC to terminate in the event of non-payment.