Groveholt Ltd v Hughes & Anor [2012] EWHC 686 (Ch) (21 March 2012)

Groveholt Ltd v Hughes & Anor [2012] EWHC 686 (Ch) (21 March 2012)

The amount secured by the charge is the sum otherwise payable to Mr Hughes under the Hughes/Chelverton Agreement, less the site assembly and infrastructure costs as defined in that agreement, including costs incurred by Sainsbury, Chelverton, or Groveholt. The total relevant costs exceeded the threshold, so nothing was secured by the charge. No breach of contract by Chelverton or Groveholt was established that would reduce the deductible costs.

Citation
[2012] EWHC 686 (Ch)
Parties
Claimant: Groveholt Limited; First Defendant: Alan Hughes; Second Defendant: Delbrook Properties Limited
Jurisdiction
England and Wales
Judgment Date
21 March 2012
Procedural Posture
Chancery Division Civil Claim / Final Judgment After Trial
Outcome
Claimant succeeds; nothing is secured by the charge in favour of Alan Hughes.
Legal Topics
Legal Charges, Overage Agreements, Site Assembly Costs, Infrastructure Costs, Redemption of Charge, Set Off, Breach of Contract, Novation, Planning Permissions
Property Law Contract Law Equity Legal Charges Overage Agreements Site Assembly Costs Infrastructure Costs Redemption of Charge +4 more

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Parties

Groveholt Limited

Claimant

Alan Hughes

First Defendant

Delbrook Properties Limited

Second Defendant

Procedural Posture

Chancery Division Civil Claim / Final Judgment After Trial

Legal Issues

  1. 1 What amount, if any, was secured by the legal charge dated 16 September 1998 over land at Cawdor Quarry in favour of Alan Hughes?
  2. 2 Are Groveholt Limited entitled to deduct site assembly and infrastructure costs from the sums otherwise payable to Alan Hughes under the relevant agreements?
  3. 3 Did breaches of contract by Chelverton or Groveholt affect the sums secured by the charge?

Ratio Decidendi

The amount secured by the charge is the sum otherwise payable to Mr Hughes under the Hughes/Chelverton Agreement, less the site assembly and infrastructure costs as defined in that agreement, including costs incurred by Sainsbury, Chelverton, or Groveholt. The total relevant costs exceeded the threshold, so nothing was secured by the charge. No breach of contract by Chelverton or Groveholt was established that would reduce the deductible costs.

Court Disposition

Claimant succeeds; nothing is secured by the charge in favour of Alan Hughes.

Orders

  • The charge dated 16 September 1998 is to be treated as securing no sum in favour of Alan Hughes.
  • The funds paid into court (£3.4 million) are to be released to Groveholt Limited.