Britain's Court of Appeal passed a judgment on Wednesday confirming that Abu Dhabi's Etihad Airways and Aldar were within their contractual rights to terminate the sponsorship agreement with Force India Formula 1 Team.
Etihad and Aldar had entered earlier into a three-year sponsorship agreement with the Spyker Formula 1 Team in 2007.
Following a change in ownership, the name of the team was changed to Force India Formula 1 Team and the car was completely rebranded, without the approval of the main sponsors, Etihad and Aldar.
The Court of Appeal confirmed that as a result of this, and other material breaches by Force India of the contract, Etihad and Aldar have the right to terminate the sponsorship agreement.
The Court of Appeal reversed the earlier decision of the High Court, and found that Etihad and Aldar were not only entitled to terminate the contract but that Force India was in breach of their contractual obligations.
The Appeal Court ordered the case to be referred back to the Queen's Bench Division for an assessment of Etihad's and Aldar's damages, and ordered Force India to pay Etihad's and Aldar's costs of the proceedings.