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 restricting development is the sum that would reasonably have been negotiated for release from the restriction at the time planning permission for the fourth house was granted, reflecting the increased value of the land and the developer's anticipated profit. The trial judge's award of £150,000 was within the reasonable range for such hypothetical negotiations and not manifestly excessive.

Citation
[2004] EWHC 303 (QB)
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 Negotiation, Wrotham Park Damages
Contract Law Property Law Collateral Contract Damages Assessment Restrictive Covenants Planning Permission Hypothetical Negotiation 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 measure of damages where a collateral contract prohibits development beyond a certain density and planning permission is later obtained for greater density

Ratio Decidendi

The appropriate measure of damages for breach of the collateral contract restricting development is the sum that would reasonably have been negotiated for release from the restriction at the time planning permission for the fourth house was granted, reflecting the increased value of the land and the developer's anticipated profit. The trial judge's award of £150,000 was within the reasonable range for such hypothetical negotiations and not manifestly excessive.

Court Disposition

Appeal dismissed

Orders

  • Damages award of £150,000 to claimant upheld