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 from the revised development scheme as it was a benefit caused by mitigation, not a collateral benefit. Future finance costs are not to be deducted as they are not causally linked to the breaches once the development was complete. The deduction for increased developer’s profit must be made before applying the loss of a chance percentage. The award of interest as damages was overstated and must be reduced to avoid double recovery.

Parties
Claimant/appellant: Barrowfen Properties Limited; First Defendant/respondent: Girish Dahyabhai Patel; Second Defendant/respondent: Stevens & Bolton LLP; Third Defendant/respondent: Barrowfen Properties II Limited
Jurisdiction
England and Wales
Judgment Date
23 January 2025
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From High Court
Outcome
Appeal dismissed; cross-appeal allowed in part
Legal Topics
Mitigation of Loss, Damages Assessment, Equitable Compensation, Loss of a Chance, Collateral Benefits, Interest as Damages
Commercial Law Professional Negligence Equity and Trusts Mitigation of Loss Damages Assessment Equitable Compensation Loss of a Chance Collateral Benefits +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Barrowfen Properties Limited

Claimant/appellant

Girish Dahyabhai Patel

First Defendant/respondent

Stevens & Bolton LLP

Second Defendant/respondent

Barrowfen Properties II Limited

Third Defendant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From High Court

Legal Issues

  1. 1 Whether Barrowfen must give credit for increased developer’s profit from a revised development scheme when assessing damages for breach of fiduciary duty and negligence
  2. 2 Whether future finance costs should be deducted from the increased developer’s profit
  3. 3 Whether the deduction for increased developer’s profit should be made before or after applying the loss of a chance percentage

Ratio Decidendi

Barrowfen must give credit for the increased developer’s profit from the revised development scheme as it was a benefit caused by mitigation, not a collateral benefit. Future finance costs are not to be deducted as they are not causally linked to the breaches once the development was complete. The deduction for increased developer’s profit must be made before applying the loss of a chance percentage. The award of interest as damages was overstated and must be reduced to avoid double recovery.

Court Disposition

Appeal dismissed; cross-appeal allowed in part

Orders

  • Barrowfen’s appeals dismissed as regards both S&B and Girish
  • S&B’s cross-appeal on deduction sequence dismissed