Philip Gameson Joinery Ltd v Lloyd

Philip Gameson Joinery Ltd v Lloyd

The defendants did not make it clear, either expressly or impliedly, that they were contracting solely as agents for Blue Steel International Ltd or that they negatived personal liability. The claimant was entitled to believe it was contracting with the defendants personally. The evidence supports the claimant’s version of events, and the relevant law imposes liability on the defendants in these circumstances.

Parties
Claimant: Philip Gameson Joinery Limited; First Defendant: Lewis George Lloyd; Second Defendant: David Kenchington
Jurisdiction
England and Wales
Judgment Date
07 November 2006
Procedural Posture
Civil (contract/agency) / Preliminary Issue Trial
Outcome
Defendants found personally liable (subject to set-off) to pay the claimant £61,123.50.
Legal Topics
Personal Liability of Agents, Contract Formation, Set Off, Corporate Identity
Contract Law Agency Law Personal Liability of Agents Contract Formation Set Off Corporate Identity

Case Brief

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Parties

Philip Gameson Joinery Limited

Claimant

Lewis George Lloyd

First Defendant

David Kenchington

Second Defendant

Procedural Posture

Civil (contract/agency) / Preliminary Issue Trial

Legal Issues

  1. 1 Whether the first and second defendants are personally liable to pay the claimant £61,123.50 or whether the contract was with Blue Steel International Ltd
  2. 2 Whether the defendants contracted as agents only and negatived personal liability

Ratio Decidendi

The defendants did not make it clear, either expressly or impliedly, that they were contracting solely as agents for Blue Steel International Ltd or that they negatived personal liability. The claimant was entitled to believe it was contracting with the defendants personally. The evidence supports the claimant’s version of events, and the relevant law imposes liability on the defendants in these circumstances.

Court Disposition

Defendants found personally liable (subject to set-off) to pay the claimant £61,123.50.

Orders

  • The first and second defendants are liable (subject to set-off) to pay the claimant £61,123.50.
  • Directions to be made for trial of outstanding matters and any application for interim payment, including VAT issues.