Ahmad Kamal JC:

JUDGMENT

Introduction

[1]The First Plaintiff is a company incorporated in Spain with its registered office at Poligono Industrial de Picassent, Calle 6, parcela 49, 46220 Picassent (Valencia) Spain.

[2]The First Plaintiff owns a professional motorcycle race team under the trade name of “Aspar Team” consisting of professional motorcycle race athletes competing in the MotoGP World Championship under the MotoGP series open class (Race) Moto 2 and Moto 3.

[3]The Second and Third Plaintiff are individual with an address at Poligono Industrial de Picassent, Calle 6, parcela 49, 46220 Picassent (Valencia) Spain.

[4]The Second Plaintiff was the founder and is the owner of Aspar Team. The Third Plaintiff joined Aspar Team in 2001 as Managing Director.

[5]The Defendant is a company incorporated in Malaysia under the Companies Act 1965 with a registered address at 23A, Jalan Pembangunan, Off Jalan Tampoi, Taman Desa Rahmat, 81200 Johor Bahru and a business address at Bangunan Mutiara Motors, No 111, Bt. 4 1/2 , Jalan Tebrau 80250 Johor Bahru.

[6]The Defendant manufactures and sells energy drink products (products) and is part of the Mutiara Motors Group of Companies (Mutiara Group) which includes Mutiara Food & Drinks (M) Sdn Bhd (Mutiara).

[7]The Plaintiffs’ cause of action against the Defendant are set out in the Plaintiffs’ statement of claim dated 28.4.2015. In summary, the Plaintiffs seek the following main relief against the Defendant:

(i)The First Plaintiff seeks €1,890,000.00 and exemplary damages for breach of Sponsorship Agreement dated 23.1.2014 (Agreement) entered into between the First Plaintiff and the Defendant.

(ii)The First Plaintiff seeks general and exemplary damages for defamatory statements made by the Defendant.

(iii)The Second and Third Plaintiffs seek general, aggravated and exemplary damages for defamatory statements made by the Defendant.

[8]The Defendant have filed the statement of defence and counter claim against the Plaintiffs’ claim. The Defendant’s defence and counterclaim are set out in Defendant’s statement of defence and counterclaim dated 15.6.2015. Essentially, the Defendant’s defence is that the First Plaintiff has no privity with the Defendant and the termination of the Agreement was lawful. The Defendant counterclaim for reputational damage and defamation.

The Trial

[9]Trial of the suit took place on 20.6.2017, 21.6.2017, 15.10.2017, 5.12.2017 and 6.12.2017. 4 witnesses testified. The Plaintiffs called three (3) witnesses and the Defendant one (1). I decided to allow the claim by the Plaintiffs and dismiss the Defendant’s counterclaim.

Background Facts

[10]The First Plaintiff, Box 55 Sociedad Limitada (Box 55), is a Spanish company which owns a professional motorcycle race team under the name of ‘Aspar Team’.

[11]The First Plaintiff is known in the motorcycle high performance and competition world as Aspar Team and Aspar Team is Box 55’s trade name.

[12]The Aspar Team is a team of professional motorcycle race athletes competing in the MotoGP World Championship under the Race, Moto 2 and Moto 3.

(i)The MotoGP World Championship is the most prestigious motorcycle racing competition in the world, with a history dating back to 1949. It is a showcase of international

(ii)competitions over an 8-month season every year, divided into 18 Grand Prix races in 13 different countries and in 3 categories, namely the Race, Moto2 and Moto3.

(iii)The MotoGP World Championship has a large number of spectators. In 2014, the total attendance of spectators at all 18 circuits in all 13 countries was 2,276,624 and there were a total of 8,442 media representatives from 55 countries. A total of 207 countries and territories, including Malaysia, receive live or same day delayed broadcasts of the MotoGP World Championship.

(iv)The Aspar Team is a very successful racing team that has 3 riders in the Moto3 category and 2 riders in the Race. From the time Box 55 was set up in 1992 until 2014, Aspar Team recorded 87 GP Victories, 102 2