BARROWFEN PROPERTIES LIMITED v GIRISH DAHYABHAI PATEL & Ors

BARROWFEN PROPERTIES LIMITED v GIRISH DAHYABHAI PATEL & Ors

Barrowfen must give credit for the increased developer's profit of £2,508,182 attributable to additional investment in the Revised Development Scheme; future finance costs, opportunity costs, and fees for standby letter of credit and guarantee are not deductible as they do not form part of the continuous transaction or were not legally incurred before judgment. Deduction for capital appreciation must be made before applying the loss of chance percentage. Damages for Company Claims and Administration Claim are cumulative, not alternative, as outcomes are contingent. Girish is separately liable for Bedford Rectification Claim costs. Interest as damages is awarded at 2% above base rate on...

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
Civil / Post Liability Judgment Addressing Reserved Matters and Quantum Corrections
Outcome
Claimant partially succeeds; damages and equitable compensation awarded with corrections and deductions as specified.
Legal Topics
Directors' Duties, Solicitors' Duties, Loss of Chance, Mitigation, Damages Assessment, Interest as Damages
Company Law Professional Negligence Equity Directors' Duties Solicitors' Duties Loss of Chance Mitigation Damages Assessment +1 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

Civil / Post Liability Judgment Addressing Reserved Matters and Quantum Corrections

Legal Issues

  1. 1 Whether Barrowfen must give credit for increased developer's profit attributable to additional investment in the Revised Development Scheme
  2. 2 Whether future finance costs and opportunity costs should reduce the credit for capital appreciation
  3. 3 Whether fees for standby letter of credit and guarantee are deductible from profit

Ratio Decidendi

Barrowfen must give credit for the increased developer's profit of £2,508,182 attributable to additional investment in the Revised Development Scheme; future finance costs, opportunity costs, and fees for standby letter of credit and guarantee are not deductible as they do not form part of the continuous transaction or were not legally incurred before judgment. Deduction for capital appreciation must be made before applying the loss of chance percentage. Damages for Company Claims and Administration Claim are cumulative, not alternative, as outcomes are contingent. Girish is separately liable for Bedford Rectification Claim costs. Interest as damages is awarded at 2% above base rate on...

Court Disposition

Claimant partially succeeds; damages and equitable compensation awarded with corrections and deductions as specified.

Orders

  • Damages/equitable compensation of £1,388,768.05 awarded against Girish and S&B for Company Claims.
  • Damages/equitable compensation of £316,792.03 awarded against Girish and S&B for Administration Claim.