Barrowfen Properties Ltd v Patel & Ors [2022] EWHC 1601 (Ch) (22 June 2022)

Barrowfen Properties Ltd v Patel & Ors [2022] EWHC 1601 (Ch) (22 June 2022)

Developer's profit for the Revised Development Scheme must be reduced by increased finance costs and opportunity costs relative to the Amended Original Development Scheme. Loss of chance percentage is applied after crediting the adjusted developer's profit. Damages for Company Claims and Administration Claim cannot be cumulated as they are true alternatives. Girish Patel is separately liable for Bedford Rectification Claim costs. Interest is awarded at 3% over base rate on the principal sum determined after adjustments.

Citation
[2022] EWHC 1601 (Ch)
Parties
Claimant: Barrowfen Properties Limited; First Defendant: Girish Dahyabhai Patel; Second Defendant: Stevens & Bolton LLP; Third Defendant: Barrowfen Properties II Limited
Jurisdiction
England and Wales
Judgment Date
22 June 2022
Procedural Posture
Chancery Division Business and Property Courts / Post Liability Judgment, Determination of Reserved Matters and Quantum Corrections
Outcome
Claim succeeded in part; damages and equitable compensation adjusted for increased financial costs and opportunity costs; loss of chance applied; Girish Patel liable for Bedford Rectification Claim costs; interest awarded at 3% over base rate.
Legal Topics
Damages Assessment, Loss of Chance, Equitable Compensation, Interest Calculation, Developer's Profit, Financial Costs, Opportunity Cost, Loan Guarantees
Commercial Law Professional Negligence Equity Company Law Damages Assessment Loss of Chance Equitable Compensation Interest Calculation +4 more

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Parties

Barrowfen Properties Limited

Claimant

Girish Dahyabhai Patel

First Defendant

Stevens & Bolton LLP

Second Defendant

Barrowfen Properties II Limited

Third Defendant

Procedural Posture

Chancery Division Business and Property Courts / Post Liability Judgment, Determination of Reserved Matters and Quantum Corrections

Legal Issues

  1. 1 Whether developer's profit should be reduced for increased financial costs in the Revised Development Scheme
  2. 2 How loss of chance principles apply to damages and equitable compensation
  3. 3 Whether damages for Company Claims and Administration Claim can be cumulated

Ratio Decidendi

Developer's profit for the Revised Development Scheme must be reduced by increased finance costs and opportunity costs relative to the Amended Original Development Scheme. Loss of chance percentage is applied after crediting the adjusted developer's profit. Damages for Company Claims and Administration Claim cannot be cumulated as they are true alternatives. Girish Patel is separately liable for Bedford Rectification Claim costs. Interest is awarded at 3% over base rate on the principal sum determined after adjustments.

Court Disposition

Claim succeeded in part; damages and equitable compensation adjusted for increased financial costs and opportunity costs; loss of chance applied; Girish Patel liable for Bedford Rectification Claim costs; interest awarded at 3% over base rate.

Orders

  • Developer's profit for Revised Development Scheme reduced by £1,579,682 for increased finance costs and £1,887,702 for increased notional equity costs
  • Adjusted excess developer's profit: -£959,156