Abu Dhabi companies Etihad Airways and Aldar have won their appeal against a damages order put on them by the British courts last year to pay Force India $4.6m.
Last November the High Court ordered that Etihad and Aldar pay Force India compensation for having terminated early a three-year sponsorship agreement with the team, which was then known as Spyker. The British Court of Appeal saw the matter differently, however, and said that Aldar and Etihad were right to end their sponsorship deal because the team name had been changed to Force India and re-branded without their approval.
A statement issued by Etihad said: "Following a change in ownership, the name of the team was changed to Force India Formula 1 Team and the car was completely re-branded, 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 were within their contractual rights to terminate the sponsorship agreement.
"As a result, 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 has therefore 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."