Lane v O'Brien Homes [2004] EWHC 303 (QB) (05 February 2004)

Lane v O'Brien Homes [2004] EWHC 303 (QB) (05 February 2004)

The appropriate measure of damages for breach of the collateral contract was the sum that would reasonably have been agreed in hypothetical negotiations at the time of breach for release from the restriction, not limited to a nominal sum or a fixed percentage of profit. The trial judge's award of £150,000 was within the reasonable range and not based on a wholly erroneous assessment.

Citation
[2004] EWHC 303
Parties
Claimant/respondent: Lane; Defendant/appellant: O'Brien Homes
Jurisdiction
England and Wales
Judgment Date
05 February 2004
Procedural Posture
Appeal / Judgment on Appeal Against Damages Award
Outcome
Appeal dismissed
Legal Topics
Collateral Contract, Damages Assessment, Restrictive Covenants, Planning Permission, Hypothetical Negotiations, Wrotham Park Damages
Contract Law Property Law Collateral Contract Damages Assessment Restrictive Covenants Planning Permission Hypothetical Negotiations Wrotham Park Damages

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Parties

Lane

Claimant/respondent

O'Brien Homes

Defendant/appellant

Procedural Posture

Appeal / Judgment on Appeal Against Damages Award

Legal Issues

  1. 1 Whether the award of damages for breach of a collateral contract restricting development was made on an appropriate basis
  2. 2 What is the correct method for assessing damages where a developer breaches a contractual restriction on development density

Ratio Decidendi

The appropriate measure of damages for breach of the collateral contract was the sum that would reasonably have been agreed in hypothetical negotiations at the time of breach for release from the restriction, not limited to a nominal sum or a fixed percentage of profit. The trial judge's award of £150,000 was within the reasonable range and not based on a wholly erroneous assessment.

Court Disposition

Appeal dismissed

Orders

  • Damages award of £150,000 to claimant upheld