Portsmouth City Football Club v Sellar Properties (Portsmouth) Ltd & Anor [2003] EWHC 2148 (Ch) (17 September 2003)

Portsmouth City Football Club v Sellar Properties (Portsmouth) Ltd & Anor [2003] EWHC 2148 (Ch) (17 September 2003)

The court held that the proper construction of the Milton Lane Allowance clause required a sum to be specifically identified by the Council as attributable to its consent for the Spine Road to cross Milton Lane. Since the Council did not identify any such sum, the allowance is £1,100,000, resulting in a purchase price of £900,000. The contract is not frustrated by the absence of an identified sum, and the Developer cannot benefit from its own failure to secure a specific apportionment.

Citation
[2003] EWHC 2148 (Ch)
Parties
Claimant: Portsmouth City Football Club; First Defendant: Sellar Properties (Portsmouth) Limited; Second Defendant: Singer and Friedlander Properties PLC
Jurisdiction
England and Wales
Judgment Date
17 September 2003
Procedural Posture
Part 8 Proceedings (declaratory Relief) / First Instance Judgment
Outcome
Declaration granted in favour of the Claimant
Legal Topics
Construction of Contracts, Option Agreements, Apportionment of Consideration, Planning Obligations, Frustration of Contract

Case Brief

Summary, issues, holding and outcome

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Parties

Portsmouth City Football Club

Claimant

Sellar Properties (Portsmouth) Limited

First Defendant

Singer and Friedlander Properties PLC

Second Defendant

Procedural Posture

Part 8 Proceedings (declaratory Relief) / First Instance Judgment

  1. 1 Proper construction of the 'Milton Lane Allowance' clause in the option agreement and supplemental agreement
  2. 2 Whether the purchase price for the option land should be reduced by £1,100,000 or a lesser sum
  3. 3 Whether the contract is frustrated or unworkable if no sum is identified by the Council for the Milton Lane crossing

Ratio Decidendi

The court held that the proper construction of the Milton Lane Allowance clause required a sum to be specifically identified by the Council as attributable to its consent for the Spine Road to cross Milton Lane. Since the Council did not identify any such sum, the allowance is £1,100,000, resulting in a purchase price of £900,000. The contract is not frustrated by the absence of an identified sum, and the Developer cannot benefit from its own failure to secure a specific apportionment.

Court Disposition

Declaration granted in favour of the Claimant

Orders

  • Declaration that the Milton Lane Allowance is £1,100,000 and the purchase price is £900,000
  • Second Defendant bound by the result