Eden v Parker [2016] EWHC 3302 (Ch) (19 December 2016)

Eden v Parker [2016] EWHC 3302 (Ch) (19 December 2016)

The court finds, on balance of probabilities, that Mr Parker did not make the alleged internal inspection representation and that Mr Eden placed no material reliance upon it. However, the court accepts Mr Eden's evidence that Mr Parker gave a binding oral guarantee that renovation costs would not exceed £560,000, and that Mr Eden relied on this in entering the joint venture and funding the works. Mr Parker is liable for the excess costs above the guaranteed cap, and Mr Eden is entitled to repayment of advanced funds and agreed interest. The written memorandum confirms the financial terms, and Mr Parker's subsequent conduct and admissions corroborate the existence of the guarantee.

Citation
[2016] EWHC 3302 (Ch)
Parties
Claimant/petitioner: Jack Wyatt Eden; Defendant/respondent: Barry Martin Parker; Second Respondent: Castle Hall Properties LLP
Jurisdiction
England and Wales
Judgment Date
19 December 2016
Procedural Posture
Part 7 Claim and Unfair Prejudice Petition / Trial Judgment
Outcome
Judgment for the claimant/petitioner
Legal Topics
Breach of Contract, Misrepresentation, Negligent Misstatement, Joint Venture, Unfair Prejudice, Partnership Liability
Contract Law Company Law Property Law Breach of Contract Misrepresentation Negligent Misstatement Joint Venture Unfair Prejudice +1 more

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Parties

Jack Wyatt Eden

Claimant/petitioner

Barry Martin Parker

Defendant/respondent

Castle Hall Properties LLP

Second Respondent

Procedural Posture

Part 7 Claim and Unfair Prejudice Petition / Trial Judgment

Legal Issues

  1. 1 Whether Mr Parker gave a binding guarantee regarding renovation costs
  2. 2 Whether Mr Parker made misrepresentations about inspecting the properties
  3. 3 Whether Mr Eden relied on alleged representations

Ratio Decidendi

The court finds, on balance of probabilities, that Mr Parker did not make the alleged internal inspection representation and that Mr Eden placed no material reliance upon it. However, the court accepts Mr Eden's evidence that Mr Parker gave a binding oral guarantee that renovation costs would not exceed £560,000, and that Mr Eden relied on this in entering the joint venture and funding the works. Mr Parker is liable for the excess costs above the guaranteed cap, and Mr Eden is entitled to repayment of advanced funds and agreed interest. The written memorandum confirms the financial terms, and Mr Parker's subsequent conduct and admissions corroborate the existence of the guarantee.

Court Disposition

Judgment for the claimant/petitioner

Orders

  • Mr Parker to pay Mr Eden £450,000 for excess renovation costs over the £560,000 cap
  • Mr Parker to repay £20,898 advanced for Mount Pleasant, plus agreed interest