Brocket Hall (Jersey) Ltd v Kruger & Ors [2019] EWHC 1352 (Ch) (04 June 2019)

Brocket Hall (Jersey) Ltd v Kruger & Ors [2019] EWHC 1352 (Ch) (04 June 2019)

On the proper construction of the 2003 chattels and fixtures licences, having regard to the factual matrix and prior dealings, the licence fees were exclusive of VAT and the defendants are entitled to recover VAT on arrears. The claimant was contractually obliged to deliver up the chattels and fixtures and to obtain any necessary consents, and no implied term relieves the claimant of this obligation. Damages for failure to deliver up are to be assessed by reference to the licence fees for the period of wrongful retention. Expert fees incurred by the defendants are recoverable as damages, but abortive collection costs are not.

Citation
[2019] EWHC 1352 (Ch)
Parties
Claimant: Brocket Hall (Jersey) Limited; First Defendant: Howard Robert Kruger and David Barry Zackheim (as Trustees of the Will of the First Lord Brocket); Second Defendant: Charles Ronald George Nall-Cain (the Third Lord Brocket)
Jurisdiction
England and Wales
Judgment Date
04 June 2019
Procedural Posture
Civil / Judgment After Trial on Counterclaim
Outcome
Counterclaim allowed in part; judgment for the defendants on VAT, damages for failure to deliver up, and expert fees; abortive collection costs disallowed.
Legal Topics
Construction of Contracts, Implied Terms, Damages for Breach of Contract, VAT Liability, Delivery Up of Chattels, Fixtures and Chattels, Interest on Damages
Contract Law Property Law Construction of Contracts Implied Terms Damages for Breach of Contract VAT Liability Delivery Up of Chattels Fixtures and Chattels +1 more

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Parties

Brocket Hall (Jersey) Limited

Claimant

Howard Robert Kruger and David Barry Zackheim (as Trustees of the Will of the First Lord Brocket)

First Defendant

Charles Ronald George Nall-Cain (the Third Lord Brocket)

Second Defendant

Procedural Posture

Civil / Judgment After Trial on Counterclaim

Legal Issues

  1. 1 Whether the defendants are entitled to recover VAT on licence fees under the 2003 chattels and fixtures licences; Whether the claimant is liable for damages for failure to deliver up chattels and fixtures; Whether implied terms relieve the claimant from liability to deliver up where local authority consent is required; Assessment of damages for failure to deliver up; Recovery of expert fees and abortive collection costs as damages.

Ratio Decidendi

On the proper construction of the 2003 chattels and fixtures licences, having regard to the factual matrix and prior dealings, the licence fees were exclusive of VAT and the defendants are entitled to recover VAT on arrears. The claimant was contractually obliged to deliver up the chattels and fixtures and to obtain any necessary consents, and no implied term relieves the claimant of this obligation. Damages for failure to deliver up are to be assessed by reference to the licence fees for the period of wrongful retention. Expert fees incurred by the defendants are recoverable as damages, but abortive collection costs are not.

Court Disposition

Counterclaim allowed in part; judgment for the defendants on VAT, damages for failure to deliver up, and expert fees; abortive collection costs disallowed.

Orders

  • Claimant to pay arrears of licence fees plus VAT as determined;
  • Claimant to pay damages for failure to deliver up chattels and fixtures, assessed by reference to licence fees for the relevant periods;