Bellway Homes Ltd v Beazer Homes Ltd

Bellway Homes Ltd v Beazer Homes Ltd

The Court of Appeal held that the September 1999 allocation was final and that the risk of refusal of planning permission for lot 3A passed to Bellway at the time of allocation. There was no contractual provision for reallocation or adjustment, and the doctrine of common mistake did not apply as the parties took the risk of planning refusal. Therefore, Bellway was not entitled to further land from Middle Warren to rectify the imbalance.

Parties
Claimant/respondent: Bellway Homes Ltd; Defendant/appellant: Beazer Homes Ltd
Jurisdiction
England and Wales
Judgment Date
20 January 2011
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal allowed; High Court declaration set aside.
Legal Topics
Shareholders Agreement, Joint Venture, Land Disposal, Common Mistake, Risk Allocation
Contract Law Company Law Shareholders Agreement Joint Venture Land Disposal Common Mistake Risk Allocation

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Parties

Bellway Homes Ltd

Claimant/respondent

Beazer Homes Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether the Shareholders Agreement required a further disposal of land to Bellway to rectify an imbalance after refusal of planning permission for part of the allocated land
  2. 2 Whether the September 1999 allocation was final and binding despite subsequent events
  3. 3 Whether the doctrine of common mistake applied to allow reallocation

Ratio Decidendi

The Court of Appeal held that the September 1999 allocation was final and that the risk of refusal of planning permission for lot 3A passed to Bellway at the time of allocation. There was no contractual provision for reallocation or adjustment, and the doctrine of common mistake did not apply as the parties took the risk of planning refusal. Therefore, Bellway was not entitled to further land from Middle Warren to rectify the imbalance.

Court Disposition

Appeal allowed; High Court declaration set aside.

Orders

  • Appeal allowed in favour of Beazer Homes Ltd
  • Declaration in favour of Bellway Homes Ltd set aside