The Great Estates Group Ltd v Digby

The Great Estates Group Ltd v Digby

The majority held that the agency agreement did not preclude the client from instructing another agent unless expressly stated, and that the omission of the statutory explanatory text regarding liability for commission on a sale introduced by another agent constituted a breach of the Estate Agents Act 1979 and the Regulations. As a result, the contract was unenforceable except at the court's discretion, and the judge was entitled to refuse enforcement due to the prejudice suffered by the client.

Parties
Claimant/appellant: The Great Estates Group Ltd; Defendant/respondent: Michael John Digby
Jurisdiction
England and Wales
Judgment Date
13 October 2011
Procedural Posture
Civil Appeal / Appeal Judgment From County Court to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Estate Agency Agreements, Sole Agency, Damages for Breach of Contract, Statutory Interpretation, Disclosure Obligations
Contract Law Consumer Protection Estate Agency Agreements Sole Agency Damages for Breach of Contract Statutory Interpretation Disclosure Obligations

Case Brief

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Parties

The Great Estates Group Ltd

Claimant/appellant

Michael John Digby

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal Judgment From County Court to Court of Appeal

Legal Issues

  1. 1 Whether the sole agency agreement precluded the client from instructing another agent during the exclusivity period
  2. 2 Whether the omission of statutory explanatory text in the agency agreement breached the Estate Agents Act 1979 and the Estate Agents (Provision of Information) Regulations 1991
  3. 3 Whether damages for breach of contract constitute 'remuneration' under section 18 of the Estate Agents Act 1979

Ratio Decidendi

The majority held that the agency agreement did not preclude the client from instructing another agent unless expressly stated, and that the omission of the statutory explanatory text regarding liability for commission on a sale introduced by another agent constituted a breach of the Estate Agents Act 1979 and the Regulations. As a result, the contract was unenforceable except at the court's discretion, and the judge was entitled to refuse enforcement due to the prejudice suffered by the client.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The Respondent's costs of the appeal to be paid by the Appellant, subject to detailed assessment if not agreed.